US Imposes 35% Tariff on Bangladeshi Goods, Threatening Export Economy

The United States will impose a 35% tariff on all Bangladeshi goods starting August 1, 2025, a slight reduction from an initially announced 37%, but still significantly higher than tariffs on regional competitors like Vietnam, which secured a 20% rate and Sri Lanka, which is at 30%. This move follows a 90-day negotiation window that ended on July 9 without a breakthrough. The tariff applies broadly to all product categories, including the vital garment sector, which accounts for 81% of Bangladesh’s exports. The new duties also target goods rerouted through third countries to prevent circumvention. US President Donald Trump justified the tariffs by citing persistent trade imbalances and tariff barriers in Bangladesh. Bangladesh’s garment industry faces a severe challenge, as the higher tariffs threaten to reduce competitiveness against countries like Vietnam, India, and China, which have lower or yet-to-be-finalized tariff rates. Experts warn the tariffs could cost Bangladesh’s appa...