The United States has reduced its reciprocal tariff on imports from Bangladesh from 35 percent to 20 percent, bringing some relief to the country’s export sector amid global trade uncertainties.

The announcement was made in a White House statement issued Friday (August 1), following an executive order signed by US President Donald Trump a day earlier. 

The order introduces new counter-tariff rates ranging from 10 to 41 percent on imports from several countries and territories.

According to the order, India will face a 25 percent tariff, Taiwan 20 percent, South Africa 30 percent, Pakistan 19 percent, Afghanistan 15 percent, Brazil 10 percent, Indonesia 19 percent, Malaysia 19 percent, Myanmar 40 percent, the Philippines 19 percent, Sri Lanka 20 percent, and Vietnam 20 percent.

Reacting to the development, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan said Bangladesh is now in a relatively balanced position compared to its competitors.

“Our current tariff rate is now roughly equal to or slightly lower than that of other competing countries. This is a source of relief for our industry,” he said.

He noted that although the new tariff regime may initially dampen demand due to increased costs for US buyers, Bangladesh is likely to overcome the challenge over time.

“US buyers will now have to pay nearly 20 percent more than before. This could reduce their purchasing capacity and affect consumer spending. We might see some pressure on prices and export volumes in the short term,” he added.

However, given the comparative tariff landscape, the BGMEA president expressed confidence that Bangladesh remains in a stable position to navigate the situation effectively.

MSK/