Entrepreneurs in the Bangladesh garment industry have reported that many buyer companies are starting to suspend purchase orders due to the impact of U.S. counter-tariffs. Some buyers are also requesting discounts, as the imposition of a 37% counter-tariff is projected to cause a 20 to 30 percent decrease in exports to the U.S. market.
During an inauguration event for the BGMEA electoral alliance forum office and website in the DOHS area of Mohakhali, Dhaka, garment owners expressed these concerns.
At the event, Forum Panel Leader Mahmud Hasan Khan Babu emphasized the need to quickly comprehend U.S. demands and act accordingly. He noted that while the garment sector saw significant growth last March, a crisis is on the horizon. He urged for immediate diplomatic initiatives to fortify the country’s position, expressing doubts about the possibility of reversing the U.S. decision without actions from both the government and the private sector.
Former BGMEA President Dr. Rubana Huq reported that exporters are indicating that numerous buyers are starting to pause ongoing purchase orders. She highlighted that fair pricing for garments is already a struggle, and now buyers are pushing for additional discounts to mitigate their losses. It is vital to closely monitor the real situation.
Another former BGMEA President, Anisur Rahman Sinha, stressed the importance of understanding U.S. expectations. He cautioned that this unforeseen situation could lead to a 20 to 30 percent decline in garment exports.
Noting that tariff rates on Pakistan and India have risen relatively less, former BGMEA President Anwar-ul-Alam Chowdhury Parvez pointed out that factories heavily reliant on U.S. exports will likely lose their competitive edge.
Forum Secretary General Dr. Rashid Ahmed Hossaini remarked that such an event has not been witnessed in the last century. He suggested investigating whether increasing imports from the U.S. could help lower tariffs, emphasizing the need for measures to protect the export sector and safeguard the economy.
It is important to mention that on April 2, U.S. President Donald Trump announced a new tariff policy imposing a 37% counter-tariff on Bangladeshi products, a move that has ignited global controversy in recent days.
