Recently, many such decisions have been taken by the US, due to which a new problem has arisen in front of countries around the world. One of those decisions is a huge tariff of 35 percent on Bangladesh's exports. Trump's decision has created new problems for India's neighbor Bangladesh. Trump's decision has come as a mountain for the textile industry there.
On the other hand, Trump's decision is going to give a big relief to India. The question is arising that what kind of positive effect will Trump's decision have on india and how is it a big blow for bangladesh, let's know-
Blow to the backbone of Bangladesh
Actually, for bangladesh, the textile industry is the backbone of its economy. Bangladesh exports more than 80 percent of the total exports of clothes and this sector also provides employment to about 40 lakh people. But, after the 35 percent tariff imposed by Donald Trump, the clothes exported from bangladesh will become expensive. Due to this, Bangladesh's textile sector will lag behind in competition. The price of its products will increase significantly.
Demand for indian clothes will increase
On the other hand, India's textile sector can get tremendous benefit from the 35 percent tariff imposed on Bangladesh. At present, india has a baseline tariff of 10 percent. In such a situation, American companies will get cheaper clothes from india than from Bangladesh. Due to this, companies there can turn towards India. The already strong Indian textile industry can get a tremendous boost from this decision.
After Trump's decision to impose a new rate of 35 percent tariff on Bangladesh's exports to America, there was tremendous enthusiasm in the shares of the textile sector in the indian stock market. Market experts believe that this sector can gain more momentum in the coming days. The main reason for this is the strong possibility for the indian textile sector in the coming days.
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