US trade bodies urge USTR not to impose new tariffs

The American Apparel and Footwear Association (AAFA), along with several other organisations, has urged the United States Trade Representative (USTR), the US government’s chief trade body, not to impose any new tariffs on countries currently under investigation over production capacity.

In a letter sent to the USTR on April 15, the AAFA warned that additional tariffs on supplying countries could raise costs for American consumers.

Last month, the USTR launched an investigation into 60 economies, including Bangladesh, over alleged failures to address issues related to production capacity and forced labour.

Bangladesh is scheduled to take part in a virtual USTR hearing on the matter on April 29.

The AAFA said in its letter that the US already imposes relatively high tariffs on textiles, apparel, footwear and accessories, even though these products contain significant US value, including intellectual property, raw materials such as leather, and textile inputs like yarns and fabrics.

As a result, textiles, apparel, footwear and travel goods face higher effective tariff rates than most other sectors.

The letter added that this burden disproportionately affects the industry, even though many of these goods are no longer produced in commercial quantities in the US.

It further said that although some countries identified in the investigation may run trade surpluses in certain product categories, these do not necessarily reflect structural excess capacity or practices that distort or restrict US commerce.

The concept of structural excess capacity does not reflect conditions in the US industry, it added.

Instead, the AAFA said, these trade flows are shaped by globally integrated supply chains, where production capacity is developed and used based on business decisions, long-term customer relationships and changing demand patterns.

The association urged the USTR to avoid any action that would further increase tariffs on these goods.

It also said the broad, multi-country investigation appears to be aimed at a pre-determined outcome rather than a focused review of specific practices.

The AAFA added that the investigation may be used to recreate tariff rates and structures that existed under the International Emergency Economic Powers Act (IEEPA).

It also cited Treasury Secretary Bessent, who said, “We will get back to the same tariff level for the countries. It will be just in a less direct and slightly more convoluted manner.”

The association warned that this approach could weaken the government’s ability to properly investigate and address specific foreign trade barriers.

In conclusion, the letter said the industry should not face unintended negative impacts from these investigations. It warned against further tariffs on an already heavily taxed sector, saying such measures would raise costs for American families while doing little to boost domestic production due to existing capacity and investment limits.

BANGLADESH EXPORTS SHOW STRONG GROWTH IN US MARKET

For example, in 2025, clothing exports -- accounting for 86 percent of Bangladesh’s total exports to the US -- rose by 12.36 percent to 266.15 crore square metre equivalents (SME). In value terms, exports increased by 11.75 percent to $8.20 billion compared with 2024, according to the USTR.

Footwear exports from Bangladesh reached 1.78 crore pairs, a rise of 76.43 percent in 2025 compared with 2024. In value terms, footwear exports grew by 52.67 percent to $391.77 million.

Travel goods exports increased by 26.32 percent to 2.15 crore pieces in 2025. Their value also rose by 35.44 percent to $12.37 million, the USTR said.

In another letter, the Forced Labor Working Group (FLWG) of the AAFA, along with 17 other trade organisations, urged the USTR not to impose tariffs linked to forced labour investigations.

They said companies that have invested heavily in compliance systems and are working to eliminate forced labour in supply chains should not be penalised through broad tariff measures that do not distinguish between responsible firms and bad actors.

The letter added that, under Agreements on Reciprocal Trade (ART) and related framework negotiations with the US, several economies -- including some covered by the investigation --have already committed to protecting labour rights and banning imports made with forced labour.