Garment industry entrepreneurs have reported that many buyer companies have begun suspending purchase orders due to the burden of U.S. counter-tariffs. They mentioned that some buyers are also starting to demand discounts. According to their estimates, the imposition of a 37% counter-tariff could lead to a 20 to 30 percent decline in exports to the U.S. market.
On Tuesday evening, at the inauguration event of the BGMEA electoral alliance forum office and website in the DOHS area of Mohakhali, Dhaka, garment owners shared these concerns.
At the event, Forum Panel Leader Mahmud Hasan Khan Babu said, “We must quickly understand what the United States wants and take prompt action. Although the garment sector experienced high growth last March, a crisis looms ahead. Diplomatic efforts must be made immediately to strengthen our position. Without initiatives from both the government and the private sector, we doubt whether the U.S. decision can be reversed.”
Former BGMEA President Dr. Rubana Huq said, “Exporters are informing us that many buyers are starting to issue instructions to suspend ongoing purchase orders. At a time when fair pricing for garments is already a challenge, they are now demanding additional discounts to minimize their losses. It is crucial to keep a close eye on the real situation.”
Another former BGMEA President, Anisur Rahman Sinha, stated that the government needs to understand what the U.S. wants. He warned that due to this unexpected storm, garment exports may fall by 20 to 30 percent.
Noting that tariff rates on Pakistan and India have increased relatively less, another former BGMEA President, Anwar-ul-Alam Chowdhury Parvez, said that factories with a large portion of exports going to the U.S. will lose their competitive edge.
Forum Secretary General Dr. Rashid Ahmed Hossaini said that such an incident has not occurred in the past hundred years. He suggested exploring whether increasing imports from the U.S. could lead to reduced tariffs. Measures must be taken to ensure that the export sector does not suffer in order to protect the economy.
It should be noted that on April 2, U.S. President Donald Trump announced a new tariff policy, imposing a 37% counter-tariff on Bangladeshi products. This move by Trump has sparked global controversy over the past few days.
