US to apply 35% tariff on Bangladeshi exports from 1 August, raising concerns for the country’s key garment sector.
The US will impose a 35% tariff on imports from Bangladesh starting 1 August 2025, following an announcement by President Donald Trump and a formal letter sent to Chief Adviser Muhammad Yunus.
The move is part of broader trade actions affecting 14 countries, including Vietnam, India, and Thailand. Trump cited a “longstanding and persistent” US trade deficit as the reason for the tariff hike.
The new tariff is significantly higher than the 20% rate granted to some competitors like Vietnam. Industry leaders, including former BGMEA president Rubana Huq, warned the tariff could be “disastrous” for Bangladesh’s export sector, especially the ready-made garment (RMG) industry, which accounts for about 20% of exports to the US. The previous tariff rate for Bangladesh averaged around 15%.
CPD Executive Director Fahmida Khatun and Sanem Executive Director Selim Raihan said the tariff will erode price competitiveness, threaten jobs, and impact sectors linked to RMG, such as banking, logistics, and packaging. Garment exporters warned of factory closures and job losses, particularly affecting female workers.
A Bangladeshi delegation remains in Washington for negotiations. Commerce Secretary Mahbubur Rahman confirmed that talks are ongoing and a new set of documents has been submitted by the US.
