- Title: Garment giant Bangladesh shocked by high Trump tariffs
- Date: 3rd April 2025
- Summary: CHITTAGONG, BANGLADESH (APRIL 3, 2025) (REUTERS) CHITTAGONG SEA PORT FACTORY OWNER S.M. ABU TAYEB READING WORK REPORTS (SOUNDBITE) (Bengali) CLOTHING FACTORY OWNER AND OWNERS ASSOCIATION LEADER, S.M. ABU TAYEB, SAYING: “There is some misinformation that affected this decision (of the Trump administration). Due to this misinformation, the tariff amount set upon us became to
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- Keywords: BANGLADESH BANGLADESH CLOTHING INDUSTRY BANGLADESH READYMADE GARMENT FACTORY DONALD TRUMP TARIFF WAR RMG FACTORY TARIFF WAR USA
- Location: DHAKA AND CHITTAGONG, BANGLADESH AND BANGKOK, THAILAND
- City: DHAKA AND CHITTAGONG, BANGLADESH AND BANGKOK, THAILAND
- Country: Bangladesh
- Topics: Asia / Pacific,Budget/Taxation/Revenue,Government/Politics
- Reuters ID: LVA002397703042025RP1
- Aspect Ratio: 16:9
- Story Text: Bangladeshi clothing industrialists expressed shock on Thursday (April 3) over a newly imposed tariff by US President Donald Trump, which levies a 37 percent tax on export items from Bangladesh to the United States.
Despite the setback, industry leaders remain optimistic that the interim government, led by Muhammad Yunus, will engage with the US administration to renegotiate the tariff.
The United States is the largest market for Bangladesh's thriving $32 billion readymade garment industry, accounting for nearly $10 billion in exports. If the tariff remains unchanged, the industry—and its millions of workers, mostly women—could face significant financial strain, dealing a blow to the developing economy.
"As a Bangladeshi clothesmaker and exporter, this is shocking news for us," Nasiruddin Chowdhury said, adding that less-privileged women who made up most of the roles in the industry would bear the brunt of the imposed tariffs.
Factory owner S.M. Abu Tayeb added that although Bangladesh was always looking for new markets, a comparison could not be made with its largest - the United States.
The United States accounts for nearly $10 billion in exports from Bangladesh's thriving $32 billion readymade garment industry.
The readymade garments industry is of existential importance to Bangladesh's economy, accounting for more than 80% of total export earnings, employing 4 million people and contributing roughly 10% to its annual GDP.
Trump's global tariff barrage deals the latest and heaviest blow to the industry.
Last year, garment production was disrupted by violent protests that ousted Prime Minister Sheikh Hasina in August, casting doubt on the long-term potential of a market much sought after by Western fashion brands.
(Production: Sam Jahan, Carla O'Connor) - Copyright Holder: REUTERS
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