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Lowering of US tariff on Bangladesh exports to 20% 'big relief': BGMEA

04 Aug '25

1 min read

Lowering of US tariff on Bangladesh exports to 20% 'big relief': BGMEA

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Trade body BGMEA president Mahmud Hasan Khan has termed the lowering of US reciprocal tariff on his country to 20 per cent from 35 per cent a 'big relief' for the domestic RMG industry.
Citing the US executive order, he said if at least 20 per cent of US raw materials are used by Bangladesh manufacturers, the additional 20-per cent tariff would not be applicable to the value of American raw materials.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Mahmud Hasan Khan has termed the lowering of US reciprocal tariff on his country to 20 per cent from 35 per cent a 'big relief' for the domestic readymade garment (RMG) industry.

Bangladesh RMG items faced most favoured nation (MFN) tariffs at a rate of 16.5 per cent earlier. Due to the new 20-per cent additional duty, tariffs will now be 36.5 per cent, varying based on product categories, he said.

Citing the US executive order, the BGMEA president said if at least 20 per cent of US raw materials are used by Bangladesh manufacturers, the additional 20-per cent tariff would not be applicable to the value of American raw materials.

About three-fourths of Bangladesh's apparel exports to the United States are cotton-based.

Cautioning against complacency, he told a press conference that the industry must continue to enhance its competitiveness while expecting continued policy support from the government.

Fibre2Fashion News Desk (DS)

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