Can Bangladesh Maintain Its Position in the US Market?

Bangladesh faces a pressing deadline of July 9, 2025, to secure a favorable trade agreement with the United States, as potential tariff hikes threaten its garment exports. The current 16% tariff on apparel could rise to 53% if negotiations fail, risking Bangladesh’s status as the world’s second-largest garment exporter, which accounts for roughly 80% of its export revenue. In 2024, Bangladesh’s apparel exports to the US reached $7.34 billion, a significant increase over the past decade, underscoring the market’s importance.

To counter this, Bangladesh is intensifying diplomatic efforts, proposing increased imports of US goods like Boeing planes, wheat, cotton, and oil to reduce the trade deficit. Commerce officials are engaging US-based retailers and lobbying groups to advocate for lower tariffs, emphasizing Bangladesh’s competitive labor costs and compliance with international standards. However, posts on X highlight concerns that failure to secure a deal could weaken Bangladesh’s position, with some suggesting regional competitors like India could benefit.

The negotiations, ongoing in Washington, face challenges over terms that Bangladesh argues conflict with global trade rules. With the US being the largest apparel market, maintaining access is vital for Bangladesh’s economy, which relies heavily on its 4,000 garment factories employing millions. The outcome will shape the nation’s trade strategy and economic stability in the coming years.

Published in SouthAsianDesk, July 4th, 2025

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