US President Donald Trump has announced a 37% tariff on Bangladeshi goods entering the American market. As a result, foreign brands and buyer companies are now recalculating their costs.
Some buyers are contacting factory authorities to discuss who will bear the cost of the new tariff. Already, US buyers have started cancelling orders from Bangladesh, the world’s second-largest garment producer.
This has sparked concern among Bangladeshi garment exporters, according to a report by France24.com on Monday.
Mohammad Mushfiqur Rahman, Managing Director of Ascensor Footwear & Leather Products, has been exporting garments since 2008. Every month, he sends about $100,000 worth of goods to the US.
He told French news agency AFP, “My buyer asked me last Sunday to cancel a shipment of leather goods worth $300,000—including bags, belts, and wallets. This buyer has been sourcing from me for a long time, but now we are both uncertain about the future.”
AKM Saifur Rahman, a manufacturer from Wikitex-BD, said, “My US buyer requested to cancel a shipment worth $150,000. The buyer mentioned that the additional cost cannot be passed on to their customers, so we must reduce our prices.”
In response, Md. Anwar Hossain, the government-appointed administrator of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), has sent a letter to US buyers urging for a compromise.
In the letter, he wrote, “We know that several brands and retailers have already expressed concerns to Bangladeshi suppliers. In some cases, discussions are ongoing about potential steps to mitigate the impact. We understand the seriousness of the situation, but placing the initial burden solely on suppliers will only add pressure. At this time, we humbly seek your patience and support”.
Former BGMEA director Mohiuddin Rubel said some buyers have already requested shipment suspensions until further announcements are made. Smaller buyers, in particular, are putting pressure on suppliers, urging Bangladeshi businesses to either fully absorb the tariff or share the cost.
Meanwhile, Press Secretary Shafiqul Alam stated last Sunday that Bangladesh's interim government chief advisor Dr. Muhammad Yunus held an emergency meeting last Saturday to assess the tariff’s impact. He has already written a letter to Trump regarding the issue.
In 2024, Bangladesh exported approximately $8.4 billion worth of goods to the United States. Of that, $7.34 billion came from the garment sector.
