A fairer tariff landscape: An opportunity for Bangladesh's RMG industry

The recent decision by the United States to impose near-uniform tariff rates on countries other than China marks a welcome development for the global apparel trade. For key exporters like Bangladesh, the capping of tariffs within the 19–20 per cent range helps preserve our competitive edge in the international market.

We extend our sincere appreciation to the US administration for introducing a tariff structure that is not only fair but also largely devoid of burdensome conditionalities. This signals a shift towards more equitable global trade practices.

Credit is also due to the Bangladeshi negotiation team, led by the Honourable Commerce Adviser. Their diplomatic foresight and relentless efforts have enabled Bangladesh to secure a level playing field alongside other major apparel-exporting nations.

Yet, this development brings both opportunity and responsibility. To capitalise on this improved trade environment, our entrepreneurs must demonstrate greater agility, awareness, and negotiation skills. Crucially, we must engage with US buyers to clarify that these import duties are their responsibility—ultimately to be absorbed by the consumer. While this could result in a modest rise in retail prices, it may also temporarily affect demand.

In such a scenario, buyers may attempt to exert downward pressure on prices. However, given that competing countries face similar or even steeper tariff rates, Bangladesh has a window of opportunity—provided we negotiate strategically. Sourcing from Bangladesh now makes more financial sense for many US importers than sourcing from countries like China or India, owing to relative tariff advantages.

If we can weather the initial turbulence, we stand to gain in the long term. A significant volume of orders could be diverted from China and Vietnam to Bangladesh. But this potential can only be realised if we strengthen our industry’s resilience. For that, coordinated support from the Bangladesh Bank and the government is imperative. We urgently need enhanced policy backing and greater access to low-cost finance to fuel export growth.

At the same time, we must adopt a firm, interest-driven stance when navigating the conditions and demands of international organisations. National interest must always remain at the core of our policy decisions.

Globally, economic progress is being driven by private sector dynamism. To remain competitive, Bangladesh must foster a truly business- and investment-friendly ecosystem. Strengthening public-private partnerships will be essential to drive industrial growth and deepen our footprint in the global marketplace.

With clear strategies, visionary leadership, and targeted reforms, Bangladesh’s ready-made garment sector is well-positioned to turn this moment into lasting momentum.

Fazlee Shamim Ehsan, CEO, Fatullah Apparels and Executive President, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA)