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The United States has imposed steep new tariffs on Bangladesh, the world’s second-largest garment producer, prompting American buyers to halt orders and leaving the industry in turmoil. In response, Bangladesh’s interim leader Muhammad Yunus has pleaded for a three-month suspension of the levies, highlighting the severe economic impact on the country’s key export sector.
Bangladesh Garment Industry Under Pressure
Textiles and garments constitute nearly 80 percent of Bangladesh’s exports, making them the backbone of the country’s economy. The sector has been struggling to recover after last year’s student-led revolution that led to the downfall of the government. However, new US tariffs have dealt another significant blow.
On Wednesday, President Donald Trump raised tariffs on Bangladesh’s cotton products from 16 percent to a staggering 37 percent. The immediate repercussions have been felt across the industry, with manufacturers reporting stalled shipments and uncertain futures.
Bangladesh Garment Industry Appeals for a Delay
In a statement released on Monday, the Bangladeshi government confirmed that interim leader Muhammad Yunus had reached out to President Trump, urging him to “postpone the application of US reciprocal tariff measures” for three months.
Yunus, in his letter to Trump, emphasized that this temporary relief would allow Bangladesh’s interim government to implement strategies aimed at increasing US exports to the country.
Those proposed exports include key US agricultural products such as cotton, wheat, corn, and soybeans, which Yunus argued would provide economic benefits to American farmers.
“Bangladesh will take all necessary actions to fully support your trade agenda,” Yunus assured Trump in the statement.
Immediate Fallout: Orders on Hold
For manufacturers, the impact of the tariffs has been swift and severe. Many exporters have already received requests from buyers to halt shipments, throwing businesses into uncertainty.
According to AFP, Mohammad Mushfiqur Rahman, managing director of Essensor Footwear and Leather Products, reported that one of his long-term buyers asked him to stop a shipment of leather goods—including bags, belts, and wallets—worth $300,000 on Sunday.
“My buyer asked me to stop a shipment of leather goods. Now both of us are in limbo over the issue,” Rahman told AFP. His company, which has been in operation since 2008, typically exports around $100,000 worth of goods to the US every month.
The apparel industry, which accounted for $7.34 billion of Bangladesh’s $8.4 billion exports to the US last year, is feeling the strain. Bengali newspaper Prothom Alo quoted AKM Saifur Rahman, CEO of ready-made garment producer Wikitex-BD, who revealed that his US buyer had asked to pause a shipment worth $150,000.
“My US buyer said it is not possible to pass the extra cost on to their clients, so we need to lower the price,” Saifur Rahman told Prothom Alo.
Industry Leaders Call for Patience
In an effort to mitigate the crisis, Md Anwar Hossain, the government-appointed administrator of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), wrote to US-based buyers urging patience and cooperation.
“We are aware that several brands and retailers have already reached out to their Bangladeshi suppliers, expressing concern and, in some cases, discussing possible measures to mitigate the impact,” Hossain wrote in his letter.
“We understand the urgency, but transferring the burden downstream to suppliers at this early stage will only exacerbate the stress,” he added. “We humbly request your patience and support during this period as Bangladesh pursues a meaningful resolution.”
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