US reciprocal tariff: 10 export products of Bangladesh to see highest duty
The United States is set to impose counter-tariffs on ten specific Bangladeshi export products, but the move is not expected to have a major impact. Exporters believe that since the volume of these high-tariff goods is already low, the new duties will not significantly affect Bangladesh's overall exports.
The new tariffs, which take effect on 7 August, will raise the average duty on Bangladeshi goods to 20 per cent. Previously, the effective average tariff was 15 per cent, meaning the new changes will bring the total average to 35 per cent.
According to data from the US International Trade Commission and Tariff Schedule, last year Bangladesh exported products under 1,204 different identification codes. The tariff rates on these goods ranged from zero to an exceptional 350 per cent. With the new duties, the tariffs on several of these products are set to rise. A Prothom Alo analysis of the US data highlights 10 products that will face the highest tariffs.
Tobacco products
Processed tobacco currently faces the highest US tariff at 350 per cent. The new 20 per cent counter-tariff will increase this to 370 per cent. This means a staggering $370 tariff on every $100 worth of tobacco. However, Bangladesh's tobacco exports to the US are minimal, amounting to only $74,000 last year.
Non-leather footwear
Two, types of shoes made from rubber and fabric, priced between $3 and $6.50 per pair, will see their tariffs jump from an average of 55 per cent to 75 per cent. Last year, Bangladesh exported $74,000 worth of these shoes. Similarly, cheaper non-leather footwear, priced under $3, will be subject to a 68 per cent tariff, up from the current 48 per cent. Waterproof plastic or rubber shoes will also see their tariff rise from 37.5 per cent to 57.5 per cent. Bangladesh exported $1.675 million of these six categories of footwear last year.
Apparel from synthetic fibre
The US import duty on seven types of synthetic fiber clothing, including T-shirts, shirts, and sweaters, is 32 per cent. With the new duties, the total tariff on these items will be 52 per cent. Last year, these seven categories of products accounted for $238.4 million in exports to the US.
Inexpensive non-leather footwear
Shoes without leather of a similar type, pieced at lea than three dollars per pair. The UA collect a 48 per cent tariff on this category of shoes. The new tariff will be 68 per cent.
Waterproof plastic of rubber footwear:
For six categories such shoes, the US import tariff is 37.5 per cent. After additional of the counter-tariff, it will stand at 57.5 per cent. Last year Bangladesh export $1.675 million worth of shoes in these six categories.
Artificial leather shoes
The current maximum tariff of 51 per cent will increase. The price per pair is between six and a half and twelve dollars. Bangladesh, on the other hand, exported shoes worth $490,000.
Children’s synthetic sweaters
From 7 August, the tariff will go up from 30 per cent to 50 per cent. Last year the product was exported for five and a half million dollars.
Women's and children's synthetic outerwear
The tariff on these six categories will increase from 28.60 per cent to 48.60 per cent. Last year these types of products were exported for $99.4 million.
Ski suits, blazers, jackets, and tracksuits
The 13 types of synthetic apparel in this category will face a tariff increase from 28.20 per cent to 48.20 per cent. Last year exports of these products were $170 million.
Men’s pants and women’s suits
The tariff on these 14 categories will rise from about 28 per cent to approximately 48 per cent.
Last year, Bangladesh’s total exports to the US were valued at $8.44 billion. The amount of high-tariff goods is a small fraction of this total. As a result, exporters are not overly concerned about the new duties. Last year exports of these products were $356.5 million.
S.M. Abu Tayeb, the managing director of Independent Apparels Limited, told Prothom Alo “that while the new tariffs will increase costs, they will not have a significant impact because Bangladesh's competitors face similar tariff rates.”