Bangladeshi garment exporters are seeking compensation from US buyers after sharing part of the additional tariff burden during the US reciprocal tariff crisis, as American importers now receive refunds on duties previously paid.
Many exporters had reduced prices or offered discounts to US buyers to offset higher tariff costs and protect orders. Industry leaders now argue that exporters who absorbed part of the burden should receive some benefit from the refunded duties.
BKMEA President Mohammad Hatem called for amounts deducted from suppliers to offset tariff costs to be returned in an appropriate form. However, exporters acknowledge that direct refunds may not always be practical and are instead seeking higher order volumes, improved prices or other commercial concessions.
BGMEA President Mahmud Hasan Khan said exporters that absorbed significant tariff costs could negotiate with buyers to recover their losses through increased business. He also noted that exporters operating under Landed Duty Paid (LDP) arrangements may have scope to pursue tariff refunds through legal channels in the US.
Industry sources estimate that some exporters absorbed around 10% of the additional tariff burden, although the impact varied significantly among companies. More than 90% of Bangladesh’s US-bound apparel shipments are reportedly made under FOB terms, while LDP shipments account for less than 10%.
US sourcing representatives have also acknowledged that suppliers should benefit if they had shared the tariff costs. Rather than direct payments, compensation could take the form of higher future prices, larger orders, or concessions on freight and other costs.
The issue adds a new dimension to Bangladesh-US apparel trade negotiations, with exporters now seeking to recover at least part of the financial losses incurred during the tariff crisis.
