The Trump administration has imposed a new 10 percent additional tariff on imports from Bangladesh and 59 other countries under Section 301 of the 1974 Trade Act, citing insufficient action against goods or raw materials produced with forced labor. In an interview published July 26, Bangladesh Knitwear Manufacturers and Exporters Association President Mohammad Hatem said the immediate overall tariff burden had not changed significantly because an earlier 10 percent tariff had expired and was replaced at the same rate.

Hatem said repeated tariff changes over the past 14 months had created uncertainty for businesses. He said Vietnam faces a 12.5 percent tariff, leaving a 2.5 percentage-point gap that could offer Bangladesh some price competitiveness. Competition may become harder against India, Cambodia, Indonesia and several Central American countries, he added. If competitors receive lower tariff rates, buyers could turn to alternative sources and Bangladeshi orders could decline.

The BKMEA president rejected the forced-labor allegation, saying there was no acceptable basis for it in Bangladesh and calling for verification by international bodies. He said the association would ask the United States to reconsider and assess Bangladesh’s situation. Hatem also urged greater production capacity, product quality and diversification, market expansion, lower production costs and action on cotton-use tariff relief in the US market.