The Bangladesh garment industry faces a potential financial blow of $250 million per month in additional tariffs if the 37% tariff on ready-made garment (RMG) exports to the US market is not fully withdrawn.

This development could severely impact around 1,000 factories, threatening their survival. Leaders of the RMG sector have urged the interim government to engage in discussions with the US administration and take necessary steps to ensure the complete removal of this tariff.

These concerns were expressed during the inauguration of the Sammilita Parishad election office and a prayer session at the *Giant Business Tower in Uttara on Saturday afternoon (April 19). The event was organised in preparation for the upcoming BGMEA elections 2025-2027.

At the programme, Md Abul Kalam, leader of the Sammilita Parishad, acknowledged the temporary suspension of the 37% tariff for 90 days as a positive step.

He thanked Chief Adviser Dr Muhammad Yunusfor his role in achieving this reprieve. However, he expressed deep concern over the lack of a permanent solution, emphasising the need for further diplomatic efforts.

"In addition to diplomatic initiatives, the Chief Adviser should personally engage in discussions with the US administration to ensure that this tariff is not reimposed after the 90-day period," Abul Kalam said.

He warned that if the tariff is not permanently lifted, the RMG sector would be burdened with an additional $250 million in tariffs monthly, which could cripple the industry. "Entrepreneurs in this sector typically earn an average profit margin of only 3 to 4%. With a 37% tariff, it will be impossible for about 1,000 companies to survive," he explained.

Abul Kalam also highlighted the shifting dynamics of cost-sharing between buyers and suppliers, saying, "Although the responsibility of paying the duty usually falls on the buyer, current buying patterns show that buyers are increasingly passing these additional costs onto suppliers."

Faruque Hasan, former president of the BGMEA and chief coordinator of the Joint Council for the BGMEA elections 2025-2027, emphasized the critical role of the Sammilita Parishad in the garment industry’s sustained success.

He called for postponing Bangladesh’s transition from the list of Least Developed Countries (LDCs) by at least three years, citing the potential adverse effects of losing trade benefits.

On the issue of US tariffs, Hasan remarked, "If tariffs were reciprocal, the rates imposed on us would have been reduced further. The reality is that the US has imposed these tariffs to address its trade deficit. However, solving a trade deficit cannot solely rely on increasing imports. We are open to expanding imports, but the government must avoid making unnecessary promises in this regard."

Kazi Moniruzzaman, President of the Sammilita Parishad, urged all stakeholders to unite and work collaboratively to secure victory in the upcoming BGMEA elections.

Other notable speakers at the event included BNP leader Zainul Abdin Farroque, Bangladesh Garments Buying House Association President Mofazzal Hossain Pavel, BGMEA Supporting Committee member Asif Ashraf, and Bangladesh Apparel Youth Leaders Association President Abrar Hossain Sayem.