New US Tariffs: What They Mean for Bangladesh’s Apparel Exports

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Share The United States has moved ahead with a new round of “reciprocal” tariffs that now cover apparel from dozens of countries—including Bangladesh. For Bangladesh, the number many buyers are seeing is 20%. In practice, because clothing already paid US the most-favored-nation (MFN) duties (often ~15–17%), the effective duty burden on Bangladeshi garments now lands around 35–36.5% once the new surcharge is layered on top. By contrast, India faces a much steeper cumulative hit—structured as two tranches of 25% each totaling 50%—a change that is already pushing US brands to reconsider sourcing footprints. The other competitors in the apparel export market are also hovering around with a similar additional tariff burden keeping the playing field close to level, perhaps except India who will be facing the heat. Where Bangladesh Stands vs. Competitors

Table 1 shows the latest estimated effective tariff rates for Bangladesh and the other competing countries in the textile and apparel export market. It is seen that India is in a spot of bother with a highest tariff of 50% even more than China which is at par with the other countries in the mid-thirties. However, China’s current tariff period expires on August 12, 2025, so the situation is very fluid at this moment for them. Table 1: Estimated Effective Tariff Rates as of August 8, 2025 | Country | Effective Tariff Rates (estimated)as of August 8, 2025 | |