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of top garment exporter Ha-Meem Group, which mainly ships to the US.

India’s tariff would be 26 percent and Pakistan’s 29 percent. Indonesia, another competitor for Bangladesh, will be subjected to a 32 percent tariff, while Turkey will face the base rate of 10 percent.

“It is too early to say what the real impact would be,” Azad said, adding that both India and Pakistan are enjoying cash incentive facilities from their governments, which will make them more competitive in the American market.

Bangladesh, however, will enjoy some advantages in its trade with the US, although the effective tariff rate is more than 52 percent if the current 15.62 percent tariff is factored in, said Mustafizur Rahman, a distinguished fellow at the Centre for Policy Dialogue.

“But this move from the Trump administration will make clothes pricier and may reduce the overall demand for clothes,” he said.

Mohammad Abdur Razzaque, chairman of Research and Policy Integration for Development, echoed the same.

“Obviously, there will be some negative impacts on Bangladesh. But China’s market share will definitely erode, and this is a silver lining for us,” he added.

Bangladesh may get more benefit here because of the lower production cost and prices.

Bangladeshi garment items’ price in the international market is so low that the retailers and brands can even offset the higher tariffs.

The production cost in India is higher than that of Bangladesh because of shortage of skilled workforce and a national minimum wage.

Pakistan is strong in the home textile and denim segment but not as strong as Bangladesh in woven and knitwear exports. Also, Pakistan’s cost of production is higher than that of Bangladesh.

Small exporter Sri Lanka faces higher tariffs than Bangladesh, at 44 percent, and Cambodia, 49 percent.

Almost all economists and exporters urged urgent negotiations with the Trump administration for a reduction of duty on garment items, at least for those made from cotton imported from the US.

Anwar Hossain, the administrator at the Bangladesh Garment Manufacturers and Exporters Association and vice-chairman of the Export Promotion Bureau, said he has already collected data as he is scheduled to sit in a meeting on Sunday to discuss the possible way out of the huge tariff burden.

There are three pillars based on which the trade negotiations can proceed with the Trump administration: duty, currency devaluation and non-tariff barriers.

The duty issue is negotiable, as Trump has already said that any country can discuss it. Bangladesh is not involved in currency devaluation as the US dollar is almost market-oriented and the non-tariff barriers are too low in US-Bangladesh trade.

One non-tariff barrier was double fumigation of US cotton and it was removed by Bangladesh two years ago.

Bangladesh is one of the major importers of cotton from the US and this could be a major point of negotiation to convince the US to reduce the tariff rate.

In 2024, the US’s total goods trade with Bangladesh amounted to $10.6 billion, with Bangladesh importing goods worth $2.2 billion, according to data from the United States Trade Representative, the chief trade negotiation body of the US government.