US buyers are suspending orders from Bangladesh following Washington’s new 37% counter-tariff on imported goods, placing immense pressure on the country’s vital garment industry.
Bangladesh, the world’s second-largest exporter of ready-made garments, is grappling with uncertainty after American buyers began halting shipments in response to newly imposed US tariffs. The sector, which contributes nearly 80% of the country’s total exports, had been striving to recover after last year’s political unrest.
The crisis escalated after President Donald Trump announced a 37% counter-tariff on Bangladeshi products last Wednesday. In its aftermath, long-term buyers are reconsidering deals, raising concerns for suppliers already navigating economic instability.
Mohammad Mushfiqur Rahman, Managing Director of Essensor Footwear and Leather Products, revealed that one of his American clients suspended a $300,000 shipment of leather goods, including bags, belts, and wallets. “My client told me the increased tariff has driven up their costs, so they need to pause orders. Now, we’re both stuck in uncertainty,” Rahman said. He has been exporting around $100,000 worth of products monthly to the U.S. since 2008.
In the last fiscal year, Bangladesh exported approximately $8.4 billion worth of goods to the US, with $7.34 billion coming from the apparel sector.
Md. Anwar Hossain, the government-appointed administrator of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), issued an open letter urging American brands and retailers for patience and empathy. “We’ve seen many brands express concern to their Bangladeshi suppliers and are engaging in dialogue to find solutions,” he wrote. “However, shifting this burden directly onto suppliers could have devastating consequences for the entire industry.”
Former BGMEA director Mohiuddin Rubel echoed these concerns, stating several buyers have asked member factories to hold off on shipments. “Especially smaller buyers say they cannot absorb the full tariff hike and are asking suppliers to share the cost.”
Liberty News’ economic correspondent states that as anxiety ripples through the sector, stakeholders are calling for a cooperative approach to weather this trade shock and preserve one of Bangladesh’s most crucial economic pillars.
LND/BG
