Millions of jobs at risk as 35% US tariff threatens Bangladesh's garment industry
Bangladesh 's goods could devastate its garment industry and eliminate millions of jobs, observers say, as Dhaka scrambles to avert the looming trade blow.
Experts warn
the tariff could cripple Bangladesh's export competitiveness and fuel social unrest just as its interim government prepares for a crucial general election. While Dhaka has made efforts to secure concessions from Washington, analysts are sceptical it can avoid the tariff.
Bangladesh's ready-made garments industry employs around 4 million people and is the backbone of its economy. It contributes to over 80 per cent of the country's total export earnings, according to data from the Foreign Investors' Chamber of Commerce & Industry in Dhaka. The US is one of the biggest markets for the industry.
US President
Donald Trump announced that starting on August 1, a 35 per cent tariff would be imposed on Bangladeshi imports – down from 37 per cent that he indicated in April but still more than double the previously proposed 15 per cent.
The proposed levy could strip Bangladesh of its price advantage over regional trade rivals such as Vietnam, which faces a lower 20 per cent US tariff, according to analysts.
'If the US implements such a high tariff, then sections of our industry will shut down. Our exports will be in peril. We will be in distress,' said Abdul Wadut, whose firm, Winter Group, exports knitwear and jumpers globally.
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