The path ahead for Bangladesh's garment exporters appears steeper, as the effective tariff rate on ready-made garment (RMG) exports to the United States climbs to a striking 36.5 percent. This announcement came from Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), during a press briefing at the association office earlier today.

The new tariff structure includes a 20 percent reciprocal duty added to the existing 16.5 percent, significantly reshaping the trade dynamics between the two countries. However, a silver lining exists. If at least 20 percent of the raw materials such as cotton used in garment production are sourced from the United States, a partial reduction in the tariff will be granted. This relief will be calculated based on the value of US origin cotton used in the final product.

This move brings both challenge and opportunity. While the increased tariff adds weight to the export cost, the provision opens a door for closer material partnerships. Currently, Bangladesh's garment industry relies heavily on cotton fiber-based items, making up nearly 75 percent of total exports. This new development urges manufacturers to reassess sourcing strategies and explore collaborative pathways that can soften the tariff blow.

The BGMEA president emphasized the importance of long-term planning, suggesting that smart sourcing and bilateral engagement could be key to staying competitive in the evolving global trade map. As the apparel industry stands at a crossroads, policy adaptation and strategic sourcing will determine how Bangladesh continues to stitch its success story on the global fashion canvas.