Dhaka: The clothing sector in Bangladesh-the artery of life in its economy-suffers from a huge commercial shock after US President Donald Trump imposed a 37 % cruel tariff on ready-made Bangladesh clothes (RMG).
Industry leaders warn that the repercussions may paralyze the largest export engine in the country, at a value of $ 8.4 billion in the annual American trade.
The sudden tariff, which was disclosed during an event in the prominent White House on April 3, raises total duties on cotton mix products to 54 %, effectively increasing the costs for American buyers.
Bangladesh, who is already struggling with recovery after political turmoil, is facing the exit of export as international brands explore cheaper sources such as Jordan, Egypt and Kenya.
“This is a body blow,” said Rakibol Allam Ch Xudri of the RDM group. “The buyers will turn overnight. We are not ready for this.”
Senior Counselor Mohamed Younis held an emergency meeting late on Saturday in Dhaka, and brought together senior officials from Bangladesh Bank, the National Reearch Council (NBR) and the Ministry of Trade.
A follow -up meeting is scheduled to be held on Sunday to draw an anti -economic strategy.
Trump’s “mutual definitions” targeted with high import duties on American goods. Bangladesh, which is claimed to have imposed up to 74 % on American imports, was severely injured.
But industry experts such as Mr. M. Tanvir of Pacific jeans argue that the numbers are misleading. He said: “The number 74 % does not depend on a real tariff – it is a formula that calculates commercial deficit rates.”
The RMG sector in Bangladesh, responsible for 80 % of export profits, is now found that itself is compressed between the high production costs and the evaporated price.
“We have already received the buyers’ requests to change the requests to Jordan,” said Choufon Islam, a doctorate in medicine from the Al -Asfour group. “If this continues, the charges will stop, and payments will freeze – as during Covid.”
The interim government says it is reviewing the definitions of American imports and considering aggressive diplomacy.
Options on the table include zero access to American cotton and agriculture, increased defense imports, and direct conversations with Washington to restore trade balance.
BGMEA VP MD MD M MoHIUDDIN ChOWDHURY previously believes that a bold step can turn tide. “If we have a loyal arrival to American commodities and pressed for bilateral commercial conversations, we can still conclude a changing deal for the game.”
With their competitors like Vietnam, they are already negotiating with tariff exemptions, Bangladesh is racing over time to avoid losing a foothold in the world’s most profitable clothing market.
