M A Salam, managing director of Asian & Daffodil Group and first vice president of BGMEA, said Bangladesh’s apparel sector will remain competitive in the US market despite the recent 20% additional tariff. Bangladesh exported $8.76 billion worth of goods to the US in FY2024–25, with over 80% being apparel. Salam said the tariff reduction has freed the sector from a “suffocating situation” and restored competitiveness, as rivals like Sri Lanka, Vietnam, Pakistan, and Indonesia now face similar tariff rates of 19–20%.
He noted that while higher tariffs could fuel US inflation and reduce consumer purchasing power, Bangladesh’s focus on low-priced garments means it will face less impact compared to higher-end exporters. Orders may decline initially but are expected to normalize in the long run. Mr. Salam warned, however, that domestic challenges—such as increased port tariffs, gas and electricity shortages, and rising labour costs—could hinder growth. He urged authorities to reconsider port tariff hikes and ensure uninterrupted utilities to keep exports running smoothly.
On future risks, he highlighted Bangladesh’s upcoming graduation from LDC status in 2026, which will remove duty-free access to European markets by 2028. This, he said, will pressure the RMG sector unless proactive measures are taken. “The government must begin discussions immediately on how to address post-graduation challenges,” Salam stressed.
He also called for greater mechanization, efficiency improvements, and stronger forward-linkage industries to offset rising costs. Mr. Salam, who studied in the US and entered the garment business in the 1990s, currently oversees 14 factories exporting $300–350 million annually, with 90% destined for the US. He aims to expand further into the European market.
