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The USTR stated that it has determined, under Section 301 of the US Trade Act of 1974, that the practices of these 60 economies are \u201cunreasonable and burden or restrict US commerce,\u201d and therefore constitute actionable conduct under US trade law.<\/p>\n
The United States Trade Representative (USTR) has proposed 10\u201312.5 per cent tariffs on 60 countries, including Bangladesh, over forced-labour concerns after Section 301 findings.
\nExporters warn total US tariffs could reach ~44 per cent, hurting competitiveness.
\nExporters are urging cooperation and capacity-building measures instead of punitive tariffs.<\/p>\n
Bangladesh is also included in this list, with the USTR recommending an additional 10 per cent duty as part of a broader Section 301 investigation into global trade practices. Section 301 is one of Washington\u2019s most powerful unilateral trade tools, allowing the US to investigate foreign trade practices and impose tariffs or other restrictions.<\/p>\n
The proposal has now entered a structured consultation process, allowing stakeholders until \u00a0June 22 to request participation in hearings, while written submissions must be filed by July 6, followed by formal hearings scheduled for July 7.<\/p>\n
Bangladesh\u2019s inclusion in the list has drawn strong reactions from the industry stakeholders, many of whom are questioning the logic, consistency, and timing of the move. They have also raised concerns over a potential loss of competitiveness in the key US market, as the combined impact of the tariffs would significantly escalate overall duties.<\/p>\n
An economist closely associated with the country\u2019s manufacturing and export sector underlined that, if implemented in full, the combined effect of existing and proposed duties could push total tariff exposure on Bangladeshi apparel exports to nearly 44 per cent (comprising a 15 per cent general tariff, a 19 per cent reciprocal duty, and the newly proposed 10 per cent surcharge linked to forced-labour concerns), thereby placing severe pressure on an already overstretched industry.<\/p>\n
Industry voices have expressed particular surprise given the recent signing of the US\u2013Bangladesh Agreement on Reciprocal Trade (ART), under which Dhaka committed to enabling selected textile and apparel products to enter the US market at zero reciprocal tariff.<\/p>\n
Against this backdrop, exporters say the latest USTR proposal appears to contradict the spirit of ongoing bilateral engagement.<\/p>\n
\u201cWe have been actively engaged with the USTR for a considerable period, and the ART agreement between Bangladesh and the United States has already been concluded. In that context, it is difficult to comprehend the rationale behind imposing an additional 10 per cent tariff,\u201d remarked a leading apparel exporter, reflecting widespread uncertainty within the sector.<\/p>\n
He further argued that the US position does not directly allege the existence of forced labour within Bangladesh\u2019s domestic production system. Instead, the concern appears to focus on whether Bangladesh can adequately verify that imported raw materials from other countries are free from forced labour risks.<\/p>\n
Such verification, in practical terms, is extremely complex and often beyond the realistic capacity of any single importing country, the person concerned claimed.<\/p>\n
Meanwhile, another senior industry player warned that the proposal reflects a broader and increasingly concerning trend in global trade policy, where tariff instruments are being used to enforce regulatory expectations that have not been collectively negotiated through multilateral frameworks.<\/p>\n
While acknowledging that the elimination of forced labour remains a universally shared ethical objective, he cautioned that tying market access to a single country-driven compliance model risks undermining the MFN (Most Favoured Nation) principle and further fragmenting the global trading system.<\/p>\n
The timing of the proposal has added further strain for the Bangladesh apparel industry, which is already navigating a challenging external environment marked by global demand slowdown, economic uncertainty, and rising competition from alternative sourcing hubs.<\/p>\n
As per reports, Bangladesh\u2019s export earnings declined by approximately 7.07 per cent year-on-year in May, falling to around $4 billion from $4.73 billion recorded during the same period last year.<\/p>\n
Against this already fragile trade landscape, exporters fear that any additional tariff burden could significantly erode Bangladesh\u2019s competitiveness in its second-largest export market.<\/p>\n
One stakeholder noted that if the United States\u2019 genuine objective is to strengthen labour standards and eliminate exploitative practices, then punitive tariff measures may prove counterproductive.<\/p>\n
Instead, he argued, a more effective approach would involve technical assistance, capacity-building initiatives, and targeted support mechanisms for workers and compliance systems.<\/p>\n
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Fibre2Fashion News Desk (DR)<\/p>\n
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