The British diary predicts US dutieswill lead to the collapse of the clothing industry, which operates thanks to low margins, while generating 80% of Bangladesh's export revenue. This manufacture besides plays an crucial social role, allowing millions of women to improve their material status. Economists have long warned Bangladesh against overly basing the economy on only 1 sector.
Bangladesh Prime Minister with letter to Donald Trump
In a letter to Trump Yunus promised to reduce Bangladesh's tariffs on US products, including gas turbines, semiconductors and medical equipment. He besides presented an offer of "significantly increasing" imports of wheat, maize and soya. The Prime Minister besides asked for a three-month withdrawal period to pay work to let the government in Dhaka to accept more goods exported from the US to Bangladesh. The White home hasn't responded to Yunus' letter yet.
According to ‘FT’, Bangladesh is the world's second largest cotton importer after China. The largest origin of cotton supplies to the country was from 2023 to 24 West Africa (35%), followed by India and Brazil. The United States was liable for 11% of imports.
Bangladeshi clothing manufacture will suffer
According to clothing manufacturers in Bangladesh who supply American companies, if duties are maintained, they will lose customers to competing countries. The producers listed, among others, Egypt and Kenya, on which 10 % customs tariffs were imposed, and Jordan, charged with 20 % duties.
Most Bangladeshi clothing exports go to American large retail chains specified as JCPenney, mark and Walmart, where many inexpensive clothes are sold. Clothing companies anticipate this sector to endure more than the premium brands specified as Ralph Lauren and Tommy Hilfiger.
