Ashulia, Bangladesh – Bangladesh’s garment sector — the lifeline of its economy — is reeling from U.S. President Donald Trump’s decision to impose a 35% tariff on imports from the South Asian country, effective August 1.
The move has sparked widespread fear of job losses among the 4 million workers who power the industry.
The garments sector generates over 80% of Bangladesh’s export earnings and contributes nearly 10% to its GDP. But with higher tariffs making Bangladeshi apparel less competitive than exports from Vietnam, India, and Sri Lanka, many global brands are holding off on new orders.> “For months, all we hear is talk about job cuts,” said Raimoni Bala, a 32-year-old sewing machine operator in Ashulia. “Every visitor to the factory makes my heart sink — I worry they’ve come to lay us off.”Trump’s new tariff is slightly lower than the 37% announced in April but more than double the previous average of 15%. Meanwhile, Vietnam faces a 20% tariff, and no formal announcement has yet been made regarding India or Sri Lanka.Negotiations for a bilateral trade deal between Bangladesh and the U.S. continue, but industry insiders fear time is running out.
Manufacturers supplying to major clients like Gap Inc and VF Corp (Vans) say the uncertainty is hurting growth and stalling new contracts.> “The burden of this hike will fall heavily on manufacturers and workers, most of whom are women,” said Selim Raihan, economics professor at the University of Dhaka. “This risks increased poverty and slower economic growth.”Bala’s story mirrors many in the capital.
She left her rural home years ago, hoping to provide for her two sons. Her husband, unable to work consistently due to poor health, makes her income the family’s sole support.
The pandemic once shut her factory, and even though she received a partial wage through a government program, the family barely survived.> “I hold onto this job with everything,” she said. “It feeds my children and keeps them in school. Without it, I don’t know what our future holds.”The impact of these tariffs could ripple across millions of households, worsening poverty in one of the world’s largest garment-producing nations — unless trade talks offer relief in time.
