Bangladesh’s textile industry leaders have expressed serious concerns regarding the recent increase in U.S. tariffs, which have risen to 37%. This hike poses a substantial threat to the nation’s garment export market, which significantly impacts its economy. The tariffs on cotton and polyester goods could lead buyers to shift their purchases to other cost-competitive countries, creating a significant challenge for Bangladesh’s textile sector.
Rakibul Alam Chowdhury, chairman of RDM Group, a prominent manufacturer with an estimated turnover of $25 million, stated, “Buyers will go to other cost-competitive markets—this is going to be a massive blow for our industry. We will lose buyers.”
The newly imposed tariffs, announced by U.S. President Donald Trump, represent a sharp increase from the previous 16% on cotton and 32% on polyester goods. Bangladesh exports garments worth approximately $8.4 billion annually to the United States, making it the second-largest garment manufacturer in the world. With the new tariffs in place, the future of the country’s garment industry appears uncertain.
A revolution that overthrew the government in August 2024 damaged Bangladesh’s garment business; garment sector demonstrators were instrumental in this collapse.
Though yearly profits were not much lower, the months-long violence caused production to be constantly delayed.
While it had exported $38 billion the previous year, the clothing sector made $36 billion in 2024.
