Dhaka, April 7 – Bangladesh, the world’s second-largest garment exporter, is grappling with significant trade disruptions after the United States imposed a sharp increase in tariffs on its cotton products. The punitive tariffs, raised from 16% to 37% on April 2, have prompted American buyers to halt orders, leaving the Bangladeshi garment industry reeling.
The textile and garment sector, which contributes about 80% of Bangladesh’s exports, had been recovering from the political turmoil of 2024, which saw a student-led revolution topple the government. However, the new tariffs threaten to derail progress. Reports suggest that US buyers are unable to absorb the increased costs and are requesting shipment halts or price reductions from Bangladeshi suppliers.
Interim leader Muhammad Yunus has appealed directly to US President Donald Trump, requesting a three-month pause to the tariffs. In a statement, Yunus emphasized Bangladesh’s commitment to supporting the US trade agenda, offering to increase imports of American products like cotton, wheat, corn, and soybeans. “Bangladesh will take all necessary actions to fully support your trade agenda,” Yunus assured Trump.
The impact on the export sector is already visible. Mohammad Mushfiqur Rahman, managing director of Essensor Footwear and Leather Products, disclosed that a US buyer halted a shipment of leather goods worth $300,000, leaving both parties in uncertainty. Similarly, A.K.M. Saifur Rahman, CEO of Wikitex-BD, reported that his US client asked for a halt to a shipment worth $150,000, citing an inability to pass the tariff burden to end customers.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has also stepped in, urging American buyers for patience and understanding. Administrator Md Anwar Hossain stated in a letter, “Transferring the burden downstream to suppliers at this early stage will only exacerbate the stress. We humbly request your patience as Bangladesh pursues a meaningful resolution.”
Despite these efforts, some smaller buyers are reportedly pressuring Bangladeshi suppliers to absorb the tariffs or share the costs, deepening the crisis. Bangladesh exported $8.4 billion worth of goods to the US in 2024, with $7.34 billion coming from ready-made garments alone.
As the situation unfolds, the Bangladeshi government faces mounting pressure to find a resolution to protect its vital export sector from further damage.
