Bangladesh placed at lowest tier in new US tariff structure

Bangladesh placed at lowest tier in new US tariff structure

Bangladesh has been placed at the lowest 10 percent additional tariff level under the United States' new tariff framework. Under the same system, several of Bangladesh's key competitors have been subjected to a maximum tariff of 12.5 percent.

Information and Broadcasting Adviser Dr Zahed Ur Rahman made the remarks at the weekly briefing at the Information Department's conference room at the Secretariat on Tuesday (July 28).

He said the US announced new tariffs on 60 economies representing 86 countries under Section 301 of the Trade Act of 1974 on July 23. The decision followed an investigation by the US Trade Representative's office over allegations of forced labour.

The new rates took effect from 12:01am Washington time on July 24. A 10 percent tariff will apply as an additional duty on all Bangladeshi products exported to the US, on top of the existing Most-Favoured-Nation (MFN) tariff. Among the 86 countries, 17 are in this lowest tier, including Bangladesh .

The adviser noted that China, Vietnam and Thailand are subject to 12.5 percent tariffs, which could strengthen Bangladesh's comparative advantage in the US market.

The US is considering tariff-rate quotas for Bangladesh, Cambodia, Indonesia and Malaysia over a three-year period. If Section 301 tariffs are waived for products made using US cotton and textile materials, Bangladesh's exports could become more competitive .