Dhaka, Aug 02 (V7N) – Mahmud Hasan Khan, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), expressed cautious optimism regarding Bangladesh's position in global apparel exports, stating that the country’s new tariff rate is lower than that of key competitors India and China.

Speaking at a press briefing held at the BGMEA office in Banani on Saturday (August 2), Khan said, “It is satisfactory that our tariff rate remains more favorable compared to rival countries. However, lobbying from India and China will continue. Therefore, we must maintain strong communication with the US government on tariff-related matters.”

Under the updated structure, Bangladesh will face a 36.5% duty on garment exports to the United States. However, the BGMEA President noted that the rate could effectively be reduced through preferential exemptions. “If we incorporate more US-origin cotton into our products—say, 20%—we can enjoy proportionate duty relief on that portion,” he explained.

In response to questions from journalists, BGMEA leaders acknowledged that it will take at least one season to fully assess the impact of the new US tariff scheme on international buyers and consumers. They also shared cautious optimism about potential trade diversion from China to Bangladesh amid shifting global supply chain dynamics.

The BGMEA emphasized the importance of strategic adaptation to the new tariff structure, including greater use of US raw materials and deeper trade dialogue with Washington to safeguard the future of Bangladesh’s vital garment sector.

END/RH/AJ