[Source/Observer Network Chen Sijia] Since the interim government of Bangladesh took office last August, the country has been busy stabilizing its severe economic situation. However, last month US President Trump announced a 37% tariff on Bangladesh, causing deep concern among the public.

The New York Times reported on May 6th that since nearly 85% of Bangladesh's export goods are clothing and the United States is its main export market, the tariff policy of the Trump administration poses a threat to the livelihoods of more than 4 million workers in Bangladesh's garment industry. Bangladesh relies on export revenue to purchase essential items such as fuel and food, and tariffs could have a "devastating impact" on the country.

The report stated that Bangladesh, a country with a population of 170 million, has seen its economy gradually grow under the support of the garment industry since the 1980s. Currently, about 4 million residents are directly employed by companies manufacturing export garments, and tens of millions more may depend on the garment industry for their livelihoods.

In recent years, Bangladesh's garment industry has continued to integrate, with fewer production companies but sustained growth in employment and export values. Over 230 garment factories have also received LEED certification led by the U.S. Green Building Council's "Leadership in Energy and Environmental Design" program.

However, Trump announced last month the imposition of so-called "reciprocal tariffs," planning to impose a 37% tariff on Bangladesh. Although Trump quickly backtracked and decided to delay the implementation of "reciprocal tariffs" for some countries by 90 days, the U.S. government still retains a "minimum base tariff" of 10%.

The New York Times pointed out that even a 10% tariff is unacceptable in low-margin industries like garment trade, and Bangladesh must compete fiercely with garment companies from countries such as China, India, and Vietnam.

Bangladesh's garment factory - The New York Times

Murshida Akhtar (Murshida Akhtar), a textile worker living near the capital of Bangladesh, Dhaka, recently obtained a job at 4A Yarn Dyeing, a company that mainly produces high-value outerwear for American brands such as Carhartt and Calvin Klein and European clients.

Akhtar told The New York Times that her new job is expected to pay $156 per month, with shorter commuting time and a better working environment than her previous job. However, she expressed deep concern about the U.S. tariff policy: "I am worried that orders will decrease, leading to fewer jobs."

Currently, Bangladesh's economy is in a difficult situation, and the interim government that took office last August is busy stabilizing its economic situation. The Dhaka Tribune reported on May 4th that Bangladesh's economy shows signs of gradual recovery, but tax revenues remain at historic lows, the banking sector is陷入困境 due to approximately 35% of non-performing loans, and GDP growth faces pressure.

The Asian Development Bank (ADB) recently warned that demand weakness related to political transitions, natural disaster threats, high inflation, and declining investment sentiment pose challenges to Bangladesh's economy. The International Monetary Fund (IMF) predicts that Bangladesh's inflation rate for this fiscal year will remain around 10%, and its GDP growth forecast has been revised down to 3.76%.

Fahmida Khatun, director of the Center for Policy Dialogue in Bangladesh, said that Bangladesh also faces pressure from the IMF, which requires it to reduce subsidies and increase fuel prices.

The New York Times pointed out that since Bangladesh relies on export revenue to purchase fuel, food, and other essentials, the U.S. tariff policy could have a "devastating impact" on the country and pose a threat to the livelihoods of over 4 million workers in the garment industry.

Mohammad Monower Hossain, head of sustainable development at 4A Yarn Dyeing, candidly admitted that Bangladesh's economy is highly dependent on the garment industry, stating, "As a country, we only have our labor force."

Muhammad Yunus, chief advisor to the interim government of Bangladesh, previously wrote to Trump, appealing for a暂缓 tariff while promising to purchase more American cotton and other goods to reduce last year's $6 billion trade surplus between Bangladesh and the U.S.

The New York Times noted that Bangladesh's garment industry is seeking transformation, but Trump's tariff policy could disrupt the income of garment workers. Rashed Al Mahmud Titumir, an economist at Dhaka University, criticized that when Bangladesh's economy is fragile, the U.S. has issued tariff threats, calling it "ugly power display."

This article is an exclusive contribution from Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7501310100007780873/

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