The Trump administration’s announcement of new retaliatory tariffs has sent ripples through Bangladesh’s export sector, with the garments industry bearing the brunt.
Before dawn had broken in Bangladesh, exporters began receiving emails from US buyers instructing them to suspend new production.
As a single country, the United States remains Bangladesh’s largest export destination.
Of the total $10.5 billion trade between the two nations, over $7 billion represents Bangladeshi exports to the US—87% of which comprises ready-made garments (RMG).
Naturally, the garment sector stands most vulnerable to this abrupt policy shift.
According to industry insiders, US buyers swiftly contacted Bangladeshi suppliers following Trump’s declaration.
In many cases, buyers are already evaluating the potential financial impact of the new tariff structure and are issuing fresh directives to their manufacturing partners in Bangladesh.
Some buyers have reportedly suggested that the cost of the new tariffs be borne by the suppliers themselves.
Others have either suspended ongoing production or cancelled forthcoming orders entirely.
Reliable sources within the RMG sector confirmed that Walmart has asked some of its Bangladeshi suppliers to shoulder a 37% tariff.
Another American retail giant, Gap, is also said to be pressuring its suppliers to cover tariff costs.
Most factory owners, wary of jeopardising longstanding relationships with their buyers, have refrained from speaking publicly on the matter.
According to the US Department of Commerce’s Office of Textiles and Apparel (OTEXA), garment imports from Bangladesh stood at $7.28 billion in 2023 and increased slightly to just over $7.34 billion in 2024.
In the first two months of 2025, US garment imports from Bangladesh topped $1.5 billion—an increase of 26.64% compared to the same period the previous year.
Nonetheless, exporters point out that Bangladesh largely ships basic, low-cost garments to the US market—products that are highly price-sensitive and face stiff competition.
Thus, any attempt to raise retail prices in the US could backfire for American buyers, potentially dampening sales.
Beyond garments, Bangladesh’s exports to the US also include headgear, footwear, other textile products, feathers and feather articles, pharmaceuticals, leather goods, fish, grains, and furniture, according to the Export Promotion Bureau (EPB).
