What Will Be the Average Tariff on Bangladeshi Exports to the US?

The fear that Bangladesh would face a heavy tariff burden in the US market unless a trade agreement was reached is on the verge of becoming reality. US President Donald Trump has sent a formal letter to Bangladesh’s Chief Adviser of the Interim Government, Professor Muhammad Yunus, informing him of Washington’s decision to impose a 35% retaliatory tariff on Bangladeshi exports.

The announcement came as part of a broader move targeting 14 countries, including South Korea and Japan. The White House’s initial 90-day tariff grace period is drawing to a close, prompting the Trump administration to declare that the new tariffs will take effect on 1 August 2025—a slight delay from the originally announced date of 9 July. If Bangladesh fails to negotiate a trade settlement within this window, the full tariff will be enforced. Notably, a minimum 10% counter-tariff had already been implemented three months ago on all exports from these nations.

🧾 What Will the Total Tariff Burden Be?

According to a 7 April executive order signed by President Trump, the new 35% tariff will be applied in addition to existing duties.

Based on data from the US International Trade Commission, the average tariff on Bangladeshi goods exported to the United States in 2024 stood at approximately 15%. Therefore, once the retaliatory duty is enforced, the total tariff burden could soar to 50%.

🤝 Negotiation Lag Draws Criticism

Unlike some other countries, Bangladesh has only recently initiated formal negotiations with the US regarding the retaliatory tariffs. Trade Adviser Sheikh Bashir Uddin is currently in the US for discussions. Meanwhile, nations like Vietnam and the UK have already signed trade agreements with the US, and a deal with India is reportedly close.

Bangladeshi exporters have voiced strong frustration over the government’s delayed response, warning that the 35% increase could devastate exports to one of Bangladesh’s largest markets. They argue that negotiations should have been prioritised months earlier. Some also fear that the new tariffs could ripple into the EU market, indirectly hurting Bangladeshi export prospects in Europe.

📉 Impact on Bangladesh’s Economy

The United States is Bangladesh’s single largest export destination. In the 2024–25 fiscal year, exports to the US totalled $8.69 billion, representing over 18% of Bangladesh’s total export earnings. More than 85% of these exports were ready-made garments, with additional shipments including caps, leather shoes, home textiles, wigs, and other leather goods.

Bangladesh is not the only country impacted:

• Vietnam faced a 46% retaliatory tariff, later reduced to 20% through negotiations.
• New tariffs set for South Korea and Japan are 25%.
• Additional tariffs include:
  • Myanmar & Laos: 40%
  • South Africa: 30%
  • Malaysia, Tunisia, Kazakhstan: 25%
  • Indonesia: 32%
  • Bosnia: 30%
  • Serbia: 35%
  • Cambodia & Thailand: 36%

President Trump has confirmed that all new duties will be levied in addition to existing sector-based tariffs.

👔 Industry Reaction

Mustafiz Uddin, Managing Director of Denim Expert Ltd. in Chattogram, told the press that a 50% total tariff would lead to a dramatic decline in exports. “Many American buyers will no longer be interested in purchasing garments at such high tariffs,” he warned. He further cautioned that this could impact pricing dynamics in the EU, as more exporters pivot to European markets—potentially driving down prices under buyer pressure.