Refayet Ullah Mirdha

Bangladesh should shift its focus from volume-driven garment exports to value-added products to retain more export earnings at home, said Mahmud Hasan Khan, the newly elected president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

The diverging outcomes threaten to create a multi-tiered tariff landscape in Asia, placing nations like Bangladesh at a serious disadvantage in the US market.

The second round of tariff negotiations between Bangladesh and the United States ended yesterday in Washington, DC, with both sides reviewing and debating key proposals.

Bangladesh is facing pressure from Washington to decouple its manufacturing industries from Chinese suppliers, according to officials familiar with trade negotiations

The tariff places Bangladesh at an immediate disadvantage against regional competitors in the garment trade.

Bangladesh maintained its position as the world’s second‑largest apparel exporter in 2024, behind only China, according to World Trade Organization (WTO) data.

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The nation exported garments worth $38.48 billion last year

Bangladesh expects a tariff rate of 20 percent or less in high-stakes trade talks with the US, after Washington fixed the same rate for Vietnam, a close competitor in global garment trade, officials familiar with the negotiations said.

As Bangladesh races against a July 9 deadline to secure a lower tariff regime with the United States, the stakes could not be higher.

A high-level meeting between Bangladesh and the Office of the United States Trade Representative (USTR) ended in Washington, DC, yesterday without a major decision, despite the looming expiry of a 90-day negotiation window on July 9.

Bangladesh has been engaged in negotiations to sign a tariff agreement with the US

The United States is Bangladesh’s single largest export destination.

Even amidst the tough times at present, garment shipments to the European Union (EU) showcased resilience as Bangladesh fared well in the January-April period, showing signs of an opportunity to overtake China, the largest apparel supplier worldwide, in the EU markets.

Local apparel makers are seeing delays in the confirmation of work orders for the next summer season, as US retailers and brands wait for the final decision on reciprocal tariffs by the US administration, expected in early July.

Bangladesh will propose to provide duty facilities to the US under a multilateral trading mechanism to retain low tariffs, as the 90-day pause of Trump’s reciprocal tariffs will come to an end on July 8.

In the budget for FY26, the government has proposed reducing import duties on certain goods and amending trade rules to enhance competitiveness in preparation for the country’s impending graduation from the list of least developed countries (LDCs).

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Although tanners have voiced opposition, the government will allow rawhide exports during the Eid-ul-Azha season with the aim of fostering demand and ensuring better prices for traders at the field level, Commerce Secretary Mahbubur Rahman said yesterday.

American Apparel & Footwear Association (AAFA), the US’s largest trade body in the apparel and footwear sector, and the Fair Labour Association (FLA) tied Bangladesh’s efforts to improve labour rights to ensure successful tariff negotiation with the Trump administration.