Major garment producer Bangladesh seeks deal after 35% US tariff

Bangladesh, the world's second-biggest garment manufacturer, holds anticipation to trim the 35 percent tariff that US President Donald Trump said helium volition impose. Photo: Munir UZ ZAMAN / AFP/File
Source: AFP

Bangladesh, the world's second-biggest garment manufacturer, holds anticipation to trim the 35 percent tariff that US President Donald Trump said helium volition impose, the country's apical commerce authoritative told AFP connected Tuesday.

Textile and garment accumulation accounts for astir 80 percent of exports successful Bangladesh and the industry has been rebuilding aft it was deed hard successful a student-led gyration that toppled the authorities past year.

"There is simply a anticipation for getting a reduced complaint of tariffs arsenic USTR (Office of the United States Trade Representative) sent different draught papers for review," Commerce Secretary Mahbubur Rahman told AFP.

Rahman said the South Asia nation's nationalist information advisor and commerce advisor were "working connected the issue" successful the United States.

Bangladesh exported $8.36 cardinal worthy of goods to the United States successful 2024, portion imports from determination amounted to $2.21 billion, according to the Bangladesh Bank and the National Board of Revenue.

US covering companies that root products from Bangladesh scope from Fruit of the Loom to Levi Strauss to VF Corp -- whose brands see Vans, Timberland and The North Face.

Trump deed Bangladesh with 37 percent tariffs successful an April 2 announcement, but successful a missive issued Tuesday, the US person said it would present beryllium 35 percent.

That is much than treble the 16 percent already placed connected fabric products.

Dhaka has projected to bargain Boeing planes and boost imports of US wheat, fabric and lipid successful a bid to trim the commercialized deficit, which Trump has utilized arsenic justification for imposing achy levies.

Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), called it "a large situation for the garment sector".

"We had expected the tariff imposed connected america to beryllium betwixt 10 to 20 percent," helium said, adding helium expected Dhaka's interim person Muhammad Yunus to "raise the contented with the United States".

Former BGMEA manager Mohiuddin Rubel warned the interaction arsenic tariffs basal would beryllium dire.

"The caller tariffs rise worries astir occupation losses successful Bangladesh arsenic the US is its main export market," helium said.

"Bangladesh needs to enactment rapidly by engaging US importers to propulsion for argumentation changes, resuming high-level commercialized talks, and highlighting the value of its products."

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Source: AFP