Desk Report,
China and Bangladesh garment exports to the US market have decreased due to countervailing tariffs
The country’s administration initially implemented a 10 percent minimum countervailing duty on exports to the US market in April. The following month, China and Bangladesh’s ready-made garment exports collapsed. However, exports from competing country Vietnam increased. India is in a favorable position.
China and Bangladesh garment exports to the US market have decreased due to countervailing tariffs
This information was obtained from statistics from the US International Trade Commission (USITC) and the Office of Textiles and Apparel (OTEXA) under the US Department of Commerce.
President Donald Trump imposed countervailing duties or reciprocal tariffs on countries from which the US imports goods on April 2. Additional countervailing duties were imposed on 57 countries of the world at various rates. At that time, the additional duty on Bangladeshi products was 37 percent. On April 9, the president suspended the countervailing duty for three months. Although a minimum 10 percent countervailing duty was implemented on all countries.
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The country’s administration initially implemented a 10 percent minimum countervailing duty on exports to the US market last April. The following month, China and Bangladesh’s ready-made garment exports collapsed. However, exports from competing country Vietnam increased. India is in a favorable position.
This information was obtained from the statistics of the United States International Trade Commission (USITC) and the Office of Textiles and Apparel (OTEXA) under the US Department of Commerce.
President Donald Trump imposed reciprocal tariffs on countries from which the United States imports goods on April 2. Additional countervailing duties were imposed on 57 countries of the world at various rates. At that time, the additional duty on Bangladeshi products was 37 percent. On April 9, the president suspended the countervailing duties for three months. Although a minimum 10 percent countervailing duty was implemented on all countries.
On July 7, the US administration imposed new tariffs on products from 14 countries, including Bangladesh. President Trump made this announcement as the White House’s 90-day tariff moratorium was about to expire. Earlier, the tariff was supposed to come into effect from July 9, but it has been postponed to August 1. According to the new announcement, the tariff on Bangladeshi products will be 35 percent. This will bring the average tariff to 50 percent. Bangladeshi representatives are currently meeting in the United States to reduce this tariff.
It is known that Donald Trump threatened to impose tariffs on China before the election last year. That is why after Trump won the election, many US buyer organizations started placing additional purchase orders in Bangladesh. As a result, Bangladesh’s ready-made garment exports to the market started increasing from November last year. Last year, Bangladesh exported a total of $7.34 billion in garments.
In January this year, Bangladesh exported $800 million in ready-made garments to the United States. In February and March, exports were $700 million and $720 million, respectively. Since the minimum countervailing duty was implemented in April, ready-made garments worth $760 million were exported in the month. But in May, those exports fell to $550 million. That means that exports in May decreased by $210 million compared to April.
