Bangladesh Faces Rising Export Costs amid Port Tariff Hikes and US Duties

Industry stakeholders in Bangladesh are sounding alarms over recent port and Inland Container Depot (ICD) tariff increases, combined with a new 35% reciprocal duty imposed by the US on Bangladeshi exports, effective August 1, 2025. The Chattogram Port Authority (CPA) approved an average 40% rise in tariffs across 56 service categories, with some charges soaring up to 440%.

Private ICDs are set to raise export container handling charges by up to 44% starting September, further adding to costs. This tariff surge is expected to generate around Tk1, 800 crore additional revenue for the port and ICD operators annually but at the expense of increased business costs amid existing global supply chain disruptions. Key export sectors like ready-made garments (RMG), which exported $7.4 billion worth to the US in 2024, are already witnessing order declines as buyers react to rising costs and uncertainty.

Business leaders warn that without intervention, Bangladesh risks losing up to 25% of garment export orders in the coming seasons, with detrimental effects on factory operations and employment. Calls are being made for government negotiations with the US and a reassessment of tariff hikes to stabilize trade and protect economic growth.