Bangladesh’s interim leadership has called for emergency talks in response to new US tariffs, which have increased significantly on textile products. With garment exports accounting for 80% of the nation’s exports, industry leaders warn of a substantial economic impact. The negotiation is a critical response to protect local manufacturers and sustain economic growth amidst heightened tariffs by the US.

Bangladesh’s interim government has convened an emergency meeting due to concerns regarding newly imposed US tariffs on its garment industry, a sector critical to the nation’s economy. The textile and garment sector accounts for approximately 80 percent of Bangladeshi exports. This industry has been striving to recover after facing severe challenges following last year’s political upheaval that disrupted operations.

US President Donald Trump has recently imposed significant tariffs, raising duties on cotton products to 37 percent from the previous rate of 16 percent, and on polyester goods from 32 percent. Bangladesh exports around $8.4 billion in garments to the United States annually, which represents 20 percent of the country’s total ready-made garment exports, according to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Chief Adviser Professor Muhammad Yunus has scheduled the meeting with industry experts and officials in Dhaka to address the tariff situation. Additionally, the National Board of Revenue is expected to conduct a review to evaluate the potential economic repercussions of these tariffs.

Rakibul Alam Chowdhury, chair of RDM Group, expressed that the new tariffs could drive buyers towards more cost-effective markets, indicating a significant threat to the industry’s stability. Anwar Hossain, administrator of the BGMEA, has stated that the industry is currently “not ready” for the impacts of these tariffs. Bangladesh remains a vital hub for garment production, catering to major global brands, including American companies like Gap Inc, Tommy Hilfiger, and Levi Strauss.

The recent imposition of punitive tariffs by the United States poses a substantial threat to Bangladesh’s garment industry, which is vital for the country’s economy. The government’s initiative to hold crisis talks highlights the urgency of addressing potential losses and navigating the competitive landscape in global markets. The collaboration among industry leaders is essential for formulating strategies to mitigate the impacts of these tariffs.

Original Source: www.dawn.com

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