2025 has ushered in a new era of global trade realignment and Bangladesh finds itself at the center of it. Under Executive Order 14257, the United States has introduced an additional 10% baseline tariff on imports from most countries, including Bangladesh. For our ready made garment (RMG) industry, which was already subject to one of the highest tariffs globally at 15.62%, this move is not just significant it’s consequential.
What does this mean for us?
-Pressure on Exports: Orders from U.S. retailers may decline as sourcing shifts to countries with lower import duties.
-Threat to Jobs: With over 4 million people employed in the RMG sector, the majority of them women, this directly affects livelihoods.
-Urgent Need for Diversification: Expanding into EU, Japan, and Gulf markets is no longer optional; it’s strategic.
-Opportunity for Negotiation: Bangladesh has proposed duty-free access for garments made from American cotton, a smart and mutually beneficial approach that deserves serious consideration.
Interestingly, major U.S. trade associations such as the American Apparel & Footwear Association (AAFA) oppose these tariff hikes.
Their argument is clear: it drives up costs for U.S. consumers while doing little to boost domestic manufacturing.
This moment calls for more than concern, it calls for action.
We must:
-Strengthen trade diplomacy
-Focus on market diversification
-Accelerate innovation in design, sustainability, and automation
-Unite the industry around a proactive, forward-looking strategy
This is not the end of the road. It’s a pivot point, and how we respond will shape the future of our industry.
I’m keen to hear from other leaders, manufacturers, and policy thinkers: How do we best navigate this new trade landscape? What partnerships, policies, or pivots are needed now?
Author: Usama Maqsood, Group Director, Experience Group
