Dhaka: Bangladeshi textile manufacturers have voiced strong concerns after the United States imposed sharp new tariffs on garment imports from the country, calling it a “massive blow” to the sector that fuels the bulk of the nation’s exports.

US President Donald Trump on Wednesday hiked duties on Bangladeshi garment products, raising tariffs from 16% to 37% on cotton items, and from 32% to 37% on polyester goods. The decision has stunned the industry in Bangladesh — the world’s second-largest garment exporter, accounting for nearly 80% of the country's total exports.

'We Will Lose Buyers'
“Buyers will go to other cost-competitive markets — this is going to be a massive blow for our industry,” said Rakibul Alam Chowdhury, chairman of RDM Group, a major textile manufacturer with an estimated $25 million turnover. “We will lose buyers.”

The country currently exports $8.4 billion worth of garments to the United States annually, according to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). That figure represents about 20% of Bangladesh’s total ready-made garment exports.

BGMEA administrator Anwar Hossain said the industry had been blindsided by the sudden tariff hike. “We were not ready for this. It came all of a sudden,” he said.

Trying to Stay Competitive
Despite the tariff shock, Hossain added that Bangladesh still retains a slight advantage over some regional competitors. “Compared to our competitors like China, Vietnam, and Sri Lanka, we are still ahead as their tariff is higher than us,” he said.

Much of Bangladesh’s garment exports to the US are made of cotton cloth, emphasized Chowdhury, who is also a former BGMEA vice president.

The government has responded quickly. Shafiqul Alam, press secretary to interim leader Muhammad Yunus, said authorities are actively looking for ways to minimize the damage.

“The National Board of Revenue is identifying options to rationalise tariffs expeditiously, which is necessary to address the matter,” Alam said in a statement.

A Sector Already Under Pressure
The US tariffs come at a challenging time for the country’s apparel industry. Bangladesh’s garment sector played a key role in the August 2024 revolution that ousted the previous government. Months of political unrest and strikes disrupted production, though total annual earnings remained fairly stable.

In 2024, the sector earned $36 billion, compared to $38 billion the previous year.

Bangladesh is a major sourcing hub for leading global fashion retailers, supplying garments to Zara, H&M, Uniqlo, Carrefour, Primark, and others. The country’s competitive labor costs have long made it an attractive option for global brands.

But with these latest US tariffs, manufacturers warn that buyer confidence and long-term investment may now be at risk, unless a resolution is reached.