The recent US tariff measures have brought fresh challenges for Bangladesh’s garment industry, but they also open doors to new opportunities. As the country’s largest export sector, the ready-made garment industry must now rethink strategies, adapt to shifting global trade, and focus on innovation. At the forefront of this effort, New Age Group is working to turn these challenges into possibilities by pushing for sustainability, diversification, and long-term competitiveness in the global apparel market.
Asif Ibrahim, Vice Chairman of New Age Group, former Director of BGMEA, and former President of DCCI, conversed with Denim Focus about the impacts, opportunities, and challenges of recent US tariff changes on Bangladesh’s ready-made garment industry. In this important discussion, he highlighted how the tariff shifts could affect Bangladesh’s apparel exports, how the industry can adapt to these changes, and what measures are essential to remain competitive in the global market. A brief conversation is given below.
Asif Ibrahim said, “After three rounds of negotiations with the USA, tariffs were reduced from 35% to 20%, which has given exporters some relief. Our main concern was that if countries competing with us in the US market received lower tariff rates, we would lose our competitive edge. From our analysis, we now see that Bangladesh’s tariff rates are more or less aligned with those of other countries.
I would like to thank the experienced team that represented Bangladesh in these negotiations, as they were able to secure a significant reduction in tariffs. However, we cannot afford to stop here. Since 2013, our industry has undergone a major transformation in terms of safety and sustainability, and it is crucial that we maintain this momentum. At the same time, we must strengthen our relationships with international buyers at the B2B level. If we can do this, I believe Bangladesh’s exports to the US can grow even further. To achieve this, both BGMEA and the private sector, in collaboration with the government, need to take concrete steps and build on this success. Looking ahead, one of the major challenges for Bangladesh’s garment industry is our heavy dependency on cotton-based fabric and yarn. Meanwhile, the global market is increasingly shifting toward man-made fibers, an area where we still remain weak.
He further added, “The main reason is that we have not yet developed the necessary backward linkages for producing such raw materials. Therefore, we need to invest in this sector to establish the capacity to manufacture man-made fibers locally. Alongside this, we must focus on technological advancement. There have been many recent innovations that, if utilized properly, can greatly improve product quality, and this is where we should concentrate.
Innovation, research, and development are essential for our future. Relying only on low-cost labor will not be enough for us to remain competitive. We need additional strategies and forward-looking plans if we are to achieve the target of $100 billion in exports.
Above all, we must ensure the long-term sustainability of this industry because it still remains one of the key foundations of Bangladesh’s economy. To safeguard its future, we must move forward with well-designed strategic plans.”
