After increasing the US tariffs, American buyers have started to suspend their orders from Bangladesh. This prompted the transitional government of the second largest clothing manufacturer in the world on Monday to request a three -month suspension of the tariffs.
The textile and clothing production accounts for around 80 percent of the South Asian nation’s exports. The industry is currently having a hard time hit by the revolution, which fell last year the government.
On Wednesday, US President Donald Trump imposed new punitive tariffs of 37 percent against Bangladesh, which previously amounted to 16 percent for cotton products and 32 percent for polyester products.
The consequences of these announcements are already noticeable in the country and prompted the head of the Transitional Government Muhammad Yunus to ask Donald Trump to “delay the application of the mutual customs measures of the United States”, as it was said in a government statement.
Yunus wrote to the US President and asked him for a period of “three months so that the transitional government can implement their initiative to significantly increase US exports to Bangladesh,” the explanation said.
These products include “cotton, wheat, corn and soybeans that will benefit the American farmers,” emphasized the explanation.
“Bangladesh will take all the necessary steps to fully support your trade agenda,” said Bangladesh’s head of government in a letter to Donald Trump.
Customs increases immediately noticeable
Textile manufacturers: Inside, report that the effects of the customs increase were almost immediately noticeable.
Mohammad Mushfiqur Rahman, Managing Director of Essenor Footwear and Leather Products, said he received a letter from one of his buyers in which he asked not to send his delivery.
“My customer asked me on Sunday to interrupt a delivery of leather products-bags, belts and wallets-worth $ 300,000 (273,000 euros),” Rahman told the AFP news agency.
His company, founded in 2008, sends average worth $ 100,000 to the United States every month.
According to the association of clothing manufacturers and exporters Bangladesh (BGMEA), Bangladesh annually exports clothing worth $ 8.4 billion to the United States, which corresponds to about 20 percent of its total exposure of clothing clothing.
Deliveries exposed
According to the Bengalian daily Prosthom Alo, AKM Saifur Rahman, the CEO of the clothing manufacturer Wikitex-BD, reported that his American customer asked him not to send an order worth $ 150,000 to him.
“He said that he could not pass the additional costs on his customers, so we have to reduce the price,” Rahman told the daily newspaper.
Mohammed Anwar Hossain, a BGMEA official, asked in a letter to the American buyers: inside for understanding.
“We understand the urgency, but to transfer the burden to the suppliers in retrospect at this early stage, the unrest will only reinforce,” wrote Hossain and demanded their “patience and support”.
Mohiuddin Rubel, former director of the BGMEA, said that some buyers: inside have already asked to suspend their deliveries until further notice.
“Above all, the smaller buyers: inside practice pressure on the suppliers to either absorb the entire tariffs or to share them,” said Rubel of the AFP news agency.
This article was used with digital tools translated.
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