Tariff cut brings relief, but buyers must bear the cost: BGMEA chief

The President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Mahmud Hasan Khan, has said the recent reduction of US counter-tariffs from 35% to 20% offers relief to the apparel sector after months of uncertainty.

“This added tariff must be borne by the importers and buyers, not the suppliers,” he stated in a written statement on Friday (August 01), as per local media reports.

Khan noted that while Bangladesh faces 1% higher tariffs than Pakistan, it enjoys a 5% lower rate than India and 10% lower than China, keeping the country competitive.

He warned, however, that buyers might reduce orders if they cannot secure extra financing, as the higher tariff affects their capital flow.

He urged BGMEA members not to absorb these additional costs and emphasised that final consumers in the US would ultimately bear the burden. He also highlighted the need for Bangladesh to meet its trade commitments to avoid future risks.