Bangladesh: 37% Rate Concentrated Almost Entirely in Apparel
Bangladesh received a 37% IEEPA reciprocal tariff rate effective April 5, 2025. Unlike many other countries where IEEPA duties spread across diverse export categories, Bangladesh’s exposure is highly concentrated: approximately 90% of Bangladesh’s exports to the United States are ready-made garments.
That concentration means the 37% IEEPA rate was effectively a 37% tax on the apparel supply chains of every U.S. retailer, brand, and importer sourcing from Bangladesh — one of the most significant single-country apparel sourcing hubs in the world.
Bangladesh and U.S. Apparel Imports
Bangladesh is the second-largest source of apparel imports for the United States, after China. Major global retailers — including department stores, fast-fashion brands, and specialty retailers — source a significant share of their garments from Bangladeshi factories.
Categories that make up the bulk of Bangladesh’s U.S. exports:
- Knit garments (Chapter 61): T-shirts, sweatshirts, underwear, knitwear
- Woven garments (Chapter 62): Dress shirts, trousers, jackets, blazers
- Denim and casual wear: A large segment of casual clothing sold in U.S. retail chains originates in Bangladesh
- Activewear: Performance and athletic garments
The Scale of IEEPA Duty Exposure
For apparel importers with heavy Bangladesh sourcing, the 37% IEEPA rate was among the most financially damaging of all country-specific rates — both because of the rate level and because of the volume of Bangladesh-origin entries in U.S. importers’ databases.
A retailer importing $10 million in Bangladeshi garments during the IEEPA period would have paid approximately $3.7 million in IEEPA duties. That amount is now potentially fully refundable through the CAPE portal.
Key Product Categories
Knit Apparel (Chapter 61): T-shirts, polo shirts, underwear, hosiery, and knitwear. This is Bangladesh’s largest export category to the U.S.
Woven Apparel (Chapter 62): Dress shirts, trousers, suits, jackets, coats, and denim. Bangladesh is a major producer of denim and casual bottoms.
Home Textiles (Chapter 63): Bed linen, towels, curtains, and other made-up textile articles. Bangladesh produces significant volumes of home textile exports as well.
No FTA Complications
The United States does not have a free trade agreement with Bangladesh. All Bangladeshi-origin goods with IEEPA duties assessed between April 5, 2025 and February 20, 2026 are potentially eligible for CAPE refunds, with no FTA exemption carve-outs to account for.
Estimating Your Bangladesh Refund
For an apparel importer that brought in $3,000,000 in Bangladeshi garments during the IEEPA window:
- Estimated duty refund: $1,110,000 (37% × $3,000,000)
- Estimated interest (~5%): $55,500
- Estimated total: $1,165,500
Use the calculator above to enter your actual import value and see your personalized estimate.