On April 5, 2025, Bangladesh’s interim leader, Professor Muhammad Yunus, convened an emergency meeting in Dhaka to address the significant impact of newly imposed U.S. tariffs on the nation’s garment industry. The United States increased tariffs on Bangladeshi textile exports to 37%, up from previous rates of 16% on cotton and 32% on polyester products. This escalation affects approximately $8.4 billion in annual exports to the U.S., representing about 20% of Bangladesh’s total ready-made garment exports.
Industry leaders have expressed deep concern over the potential loss of trade, fearing that buyers may shift to more cost-competitive markets. Anwar Hossain, administrator of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), acknowledged that the industry was unprepared for the tariff impact. The National Board of Revenue is also set to review the fallout from these tariffs.
The U.S. tariffs are part of broader measures affecting several countries, with Bangladesh’s garment sector facing a 37% tariff. This development poses a significant threat to the industry, which accounts for over 80% of the nation’s export earnings and employs approximately 4 million workers.
Neighboring countries may experience differing impacts; for instance, India’s garment sector might benefit from comparatively lower tariffs, potentially attracting buyers seeking cost-effective alternatives.
The Bangladeshi government and industry stakeholders are urgently seeking diplomatic and policy measures to mitigate the adverse effects of these tariffs and safeguard the future of the garment sector.