20% Counter Tariff on Bangladeshi Exports to US Comes into Effect

A 20% counter tariff on Bangladeshi goods exported to the United States came into effect today, Thursday, from 10:00 am local time. This means shipments loaded onto vessels from Chattogram Port before that time have avoided the new duty.

To take advantage of this window, exporters accelerated shipments in recent days, creating a surge in export activity at the port.

According to the Chattogram Port Authority, special priority given to exporters resulted in an additional 800 containers being shipped daily. As of 8:00 am Wednesday, a total of 15,400 twenty-foot equivalent units (TEUs) of export containers were stored across the port’s 19 depots, most of them bound for the United States.

BKMEA President Mohammad Hatem said many exporters rushed to ship goods before the August 7 deadline. “Those who had completed production early ensured shipment before August 1,” he noted, adding that July saw a 25% year-on-year growth in exports.

Abdus Salam, Managing Director of Asian-Daff Group in Chattogram, reported that in July Bangladesh exported USD 3.96 billion worth of ready-made garments (RMG), of which USD 820 million went to the US. About 60% of these US-bound exports moved through Chattogram Port.

Earlier, US President Donald Trump reduced counter tariffs from 37% to 35%. Following the third round of talks between Bangladeshi and US officials on July 31, the duty was cut further to 20% under a bilateral agreement. However, the US already levied an average import tariff exceeding 15%, meaning the total effective duty now stands above 35%. Previously, tariffs on RMG stood at about 16.5%.

International trade analyst and former member of the Bangladesh Tariff Commission, Mostafa Abid Khan, explained that in such cases, tariff implementation time is calculated from the point of goods clearance from the port. “In April, an additional 10% duty was implemented using the same method,” he said.

He noted that Bangladesh is in a relatively favorable position due to the US raw material exemption from counter tariffs, as the apparel sector is cotton-based and most of the country’s imported cotton comes from the US.

Ruhul Amin Sikder, Secretary General of the Container Depot Association, said exporters rushed to send containers to depots early to avoid the new US counter tariff. “As a result, US-bound exports from depots will remain high in August,” he added.

On average, Bangladesh exports 60,000–65,000 containers a month. In July, this figure jumped to 99,000, with 81,000 containers already shipped.