The ready-made garment (RMG) industry in Bangladesh is seriously threatened by the US government’s recent imposition of a 37 per cent tax, according to Rakibul Alam Chowdhury, a former vice president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). Chowdhury voiced worries that Bangladeshi manufacturers will be at a competitive disadvantage in comparison to their rivals, including China and India, which enjoy lower tariff rates, as a result of the new tariff structure.
Chowdhury highlighted that the burden of increased duties ultimately falls on buyers. If the added costs from the tariff push product prices beyond acceptable levels for US consumers, buyers may turn to alternative sourcing options to reduce expenses.
Additionally, he noted that rising manufacturing costs driven by wage increases and inflation are already making it challenging for Bangladeshi manufacturers to remain competitive in the global market. “We are currently in discussions with buyers to secure orders that are already in the pipeline. They, too, are evaluating the situation for viable solutions,” he stated.
Chowdhury also addressed the 74 per cent tariff imposed by Bangladesh on American products, pointing out that the country imports very little from the US. He criticised the high tariff as unrealistic and suggested that it may have prompted the US government to enact the new tariff.
He called on the Bangladeshi government to reconsider its tariff policy and engage in diplomatic efforts to persuade the US to retract the new tariff. “If not addressed, our RMG sector could face serious jeopardy,” he warned.
