The U.S. under Donald Trump has announced a 35% tariff on textile imports from Bangladesh, effective August 1, 2025. This move is part of a broader “reciprocal tariff” strategy aimed at countries that Trump says are benefiting unfairly from trade with America.
Bangladesh, now the second-largest textile exporter to the U.S. after Germany, will be hit hard—especially in cotton textiles, a major part of its export economy. But while this is a blow for Dhaka, it could become a big opportunity for India.
With Bangladeshi textiles becoming more expensive for American buyers, India’s cotton industry stands to gain. India already has the raw materials, skilled labor, and infrastructure to step in. This may allow Indian exporters to fill the supply gap and strengthen trade ties with the U.S.
Besides Bangladesh, 13 other countries will also face new tariffs on August 1. These include Japan, South Korea, Thailand, Cambodia, Laos, Indonesia, South Africa, Serbia, Kazakhstan, Malaysia, Myanmar, Tunisia, and Bosnia & Herzegovina—with rates ranging from 25% to 40%.
However, Trump has also left the door open for negotiation. He recently said that countries like the UK and others could avoid these tariffs if they “come to the table.” His message sounds like a “favor me, deal with me” approach—putting pressure on nations to offer something in return.
For now, if nothing changes, India could emerge as one of the biggest winners in this shifting global trade landscape.
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