Bangladesh’s ready-made garment (RMG) sector faces a serious crisis following the re-imposition of 35% countervailing duties by the United States, putting billions in export revenue at risk and prompting major buyers like Walmart to suspend or postpone orders.
More than 80 percent of the country's export earnings come from ready-made garments. The U.S. is Bangladesh’s single largest export destination, accounting $7.54 billion of the country’s $39.35 billion RMG export earnings.
According to the National Board of Revenue (NBR), 2,377 Bangladeshi companies exported their products to the United States in the 2024-25 fiscal year. Now these companies will be at great risk due to the imposition of additional duties by the United States.
Traders said that as the demand for Bangladeshi garments in the United States is increasing day by day, traders have increased their investments. These investments are now under threat as garment exporters are increasing their production capacity in new ways. If the government cannot reduce tariffs, not only will orders fall, but workers' wages, employment and social stability may all be at risk.
They said if action is not taken now, not only orders will be lost, but the country's long-standing achievements and image on the global stage may be lost forever.
A Reuters report confirmed that Walmart has already postponed an order of nearly 1 million swimwear items from Patriot Eco Apparel Ltd following the tariff announcement by US President Donald Trump. Other brands are reportedly reevaluating their sourcing from Bangladesh.
Iqbal Hossain, managing director of Patriot Eco Apparel, said, “These new tariffs make it almost impossible to meet production costs. This could lead to order cancellations, wage crises, and layoffs.”
Mr. Mofiz Ullah Bablu, a member of the Bangladesh Garment Buying House Association (BGBA) and panel leader of the United Forum, told Bangladesh Pratidin that the strength on which the overall economy of Bangladesh stands is the garment sector. The tariffs imposed by Trump are enough to destroy the garment industry in Bangladesh.
He said that an average tariff of more than 15 percent was already imposed on Bangladeshi products. If the new 35 percent tariff is added to this, the total tariff rate will exceed 50 percent. We will not be able to export garments to the US market with such a tariff.
As a result, we will lose the largest market for the garment industry, he said.
Mohiuddin Rubel, former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told Bangladesh Pratidin, “Trump's tariffs will have a cyclical impact. Everyone will suffer. Even if the minimum tariff increases, everyone will be affected. The increase in tariffs will increase the price of products for the consumer. This may temporarily reduce sales.”
“Everyone will try to impose this burden of tariffs on everyone. We need to reduce our dependence on a single country. We need to increase exports of products to other countries. Then such risks can be reduced,” he added.
Bd-pratidin English/TR
