The new tariff could significantly impact Bangladesh's ready-made garment (RMG) sector, which is vital for the country's economy. The US is a major export market for Bangladeshi garments, accounting for about 20% of exports. This tariff may reduce competitiveness and export volumes, particularly affecting factories catering to US customers and potentially leading to closures. Many workers, primarily women who are the main breadwinners for their families, could be adversely affected. Additionally, supporting industries like packaging and transportation may also face difficulties. Bangladesh, unlike larger economies, has fewer diversified export markets and relies heavily on the RMG sector for 85% of its export earnings. To mitigate these challenges, the government should engage with US trade authorities for possible preferential treatment and explore diversification into sectors like leather, pharmaceuticals, IT, and agro-processing. Strengthening trade agreements will be crucial for ensuring economic stability and resilience in the future. (ICE NEW DELHI)

Fonte notizia: The Business Standard