The issue has re-emerged because US importers are receiving refunds on duties they had paid under the reciprocal tariff regime. Bangladesh initially faced an additional tariff of more than 37 per cent, while a 10 per cent tariff was imposed from April 10, 2025; the rate was later revised several times before settling at 19 per cent.
Bangladeshi garment exporters are pressing US buyers for compensation after absorbing part of 2025 reciprocal tariff costs through price cuts and discounts.
US importers are receiving refunds after the Supreme Court ruled against the tariff regime.
Suppliers may seek recovery through higher prices, larger orders, concessions or legal claims under LDP terms.
The tariff burden was not shared evenly across Bangladeshi suppliers. Some buyers did not seek price reductions, while others demanded significant concessions from exporters, as per local media reports.
The Trump administration has already refunded about $100 billion in tariffs after the US Supreme Court ruled in February against the use of emergency powers to impose duties on dozens of trading partners. The administration had collected about $166 billion from US importers before the ruling.
Meawnhile, Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) said that suppliers should be compensated in some form for the amounts deducted from prices to offset the reciprocal tariff burden.
US buyer representatives sourcing from Bangladesh also acknowledged that suppliers should be compensated where they had carried part of the tariff cost. However, direct payments may be difficult or face regulatory challenges, and recovery could instead come through higher prices on future orders, increased business volumes, or concessions on air freight and other costs.
Exporters operating under Landed Duty Paid (LDP) terms face a separate route for possible recovery because suppliers are responsible for customs duties and tariffs under that arrangement.
BGMEA, however, does not have precise data on the share of Bangladesh’s US-bound exports shipped under LDP terms.
Fibre2Fashion News Desk
