Bangladesh's lack of leverage sees it brace for higher US tariffs

Limited trade leaves Dhaka with weak hand, risking competitiveness against Vietnam

Bangladeshi business leaders and analysts expect Washington's proposed 35% tariff to severely affect the country's vital garment industry. © Reuters

DHAKA -- Concerns are rising over Bangladesh's lack of leverage in trade negotiations with the U.S., after U.S. President Donald Trump unveiled a higher-than-expected tariff for the country if no deal is struck before Aug. 1, with business leaders and analysts expecting the proposed 35% levy to have a severe impact on the country's vital garment industry.

Compounding worries is the 20% rate secured by Vietnam, a key regional trade rival in ready-made garment (RMG) exports, which it reached by swiftly offering concessions. Dhaka now faces criticism for reacting slowly to secure a deal.

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Bangladesh's lack of leverage sees it brace for higher US tariffs

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