From August 1, US Slaps 35% Tariff on Bangladeshi Goods
After suspending steep tariffs for six months, US President Donald Trump has announced that the United States will impose a 35 percent tariff on goods imported from Bangladesh, effective August 1.
The announcement was made Monday, as the US sent formal notices to 14 countries informing them of the revised tariff rates. The move is part of a broader trade policy shift as the US escalates its global tariff regime in pursuit of what the administration calls "fair and reciprocal trade."
Earlier, US President Donal Trupm in a letter to Bangladesh interim Government's chief Advisor Dr Mohammad Yunus, informed the new tarrif issue.
The affected countries include major economies such as Japan and South Korea, as well as emerging markets and developing nations like Bangladesh, Malaysia, Indonesia, and Cambodia, according to a Reuters report. Others on the list include Kazakhstan, South Africa, Bosnia and Herzegovina, Serbia, Thailand, Tunisia, Laos, and Myanmar.
Trump initially unveiled sweeping tariff increases on April 2, targeting over 100 countries. The announcement sent shockwaves through global markets. However, just a week later, he temporarily suspended the tariffs for 90 days, maintaining the hikes only on Chinese imports. That suspension was later extended by another three months.
In letters to trade partners—some of which were shared on his Truth Social platform—Trump warned that any retaliatory increase in tariffs would be matched and added to the existing 25% duty. “If for any reason you decide to raise your tariffs, then, whatever the number you choose to raise them by, will be added onto the 25% that we charge,” he wrote to Japan and South Korea.
Impact on Bangladesh
The 35% tariff comes as a potential blow to Bangladesh’s export sector, particularly its ready-made garments (RMG) industry, which is the backbone of the country's economy. The United States is one of Bangladesh’s largest trading partners, with bilateral trade exceeding $10 billion in recent years. In 2023 alone, Bangladesh exported over $8 billion worth of goods—primarily apparel and textiles—to the US market.
Industry analysts warn that the sudden tariff hike may significantly impact competitiveness, especially in price-sensitive sectors like garments. While Bangladesh currently enjoys duty-free or preferential access to many global markets as a Least Developed Country (LDC), it does not enjoy such preferences in the US, where the majority of its products already face standard tariffs. The new 35% rate would drastically increase the cost burden on Bangladeshi exporters.
President Trump said the new tariffs are part of a strategy to pressure trade partners into renegotiating existing trade terms more favorable to the US. However, during a press briefing, he left some room for flexibility: “I would say firm, but not 100% firm. If they call up and they say we'd like to do something a different way, we're going to be open to that.”
The Bangladesh government and key exporters have yet to officially respond to the announcement. Trade experts suggest that urgent diplomatic engagement may be necessary to mitigate the potential economic fallout.