The three-month suspension period of Trump’s tariffs is about to expire. The US administration has started announcing new reciprocal tariffs in line with the initial plan announced in April. This move will create new uncertainties in global trade and the world economy.
The imposition of a 35 per cent reciprocal tariff on Bangladeshi export goods by the United States is a major economic blow, especially for the ready-made garment (RMG) sector. While the previous US tariff rate was around 15 per cent, it is now more than double. This sudden and steep increase in tariffs could undermine the competitive advantage of Bangladesh’s apparel exports.
The US is Bangladesh’s largest export market. In 2024 alone, Bangladesh exported approximately USD 8.5 billion worth of goods to the US. The burden of the increased tariffs will fall directly on garment producers and also impact millions of workers, most of whom are women.
This will also result in the risk of reduced growth, decreased employment, and increased poverty. These problems are not just economic in nature; they will also trigger social consequences.