DHAKA – The United States will impose a universal 35% tariff on all imports from Bangladesh effective August 1, 2025, according to a U.S. Trade Representative (USTR) notification issued Thursday. The move immediately threatens Bangladesh’s $10 billion garment export industry, which accounts for 84% of its US-bound shipments.
The tariff—reportedly linked to labour compliance concerns and market access imbalances—marks the steepest unilateral trade measure against Bangladesh in history. “This disproportionate action disregards Bangladesh’s significant progress on factory safety and workers’ rights,” protested Commerce Minister Tipu Munshi, confirming emergency talks with USTR Katherine Tai were underway.
Key Impacts:
- Garment Sector Crisis: 4,500 factories employing 4.4 million workers face order cancellations from major US brands (H&M, Walmart, Gap).
- Export Collapse: The 35% duty could cut Bangladesh’s US exports by $7.3 billion annually (World Bank projection).
- Consumer Impact: US apparel prices expected to surge 12-18% by Q4 2025 (Retail Industry Leaders Association).
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan condemned the decision: “This tariff ignores our $3.2 billion investment in factory upgrades since the Rana Plaza reforms. We urge immediate reconsideration.”
Dhaka’s Countermeasures:
- Filing WTO dispute alleging violation of Most Favoured Nation principles
- Fast-tracking trade agreements with China, India, and Japan
- 15% export subsidy for affected manufacturers
- Diversifying into shipbuilding, electronics, and leather goods
The EU and UN expressed “serious concern,” noting Bangladesh’s reliance on apparel exports for 11% of its GDP. Observers warn the tariff could trigger mass factory closures and reverse poverty reduction gains in the world’s second-largest garment producer.
