Major garment producer Bangladesh says US buyers halting orders

DHAKA – US buyers have begun halting orders from Bangladesh, the world’s second-biggest garment manufacturer, after punishing US tariffs that pushed the government in Dhaka to plead on April 7 for a three-month pause to the levies.

Textile and garment production accounts for about 80 per cent of exports in Bangladesh, and the industry has been rebuilding after it was hit hard in a student-led revolution that toppled the government in 2024.

US President Donald Trump hit Bangladesh with biting new tariffs of 37 per cent on April 2, hiking duties from the previous 16 per cent on cotton products.

Reports of the swift biting impact come as interim leader Muhammad Yunus pleaded with Mr Trump to “postpone the application of US reciprocal tariff measures”, the government said in a statement.

Mr Yunus wrote to Mr Trump to ask for “three months to allow the interim government to smoothly implement its initiative to substantially increase US exports to Bangladesh”, the statement added.

Those products include “cotton, wheat, corn and soya bean, which will offer benefits to US farmers”, it read.

“Bangladesh will take all necessary actions to fully support your trade agenda,” Mr Yunus told Mr Trump, according to the statement.

‘In limbo’

Manufacturers said the impact had been near immediate.

Mr Mohammad Mushfiqur Rahman, managing director of Essensor Footwear and Leather Products, said he received a letter from one of his buyers requesting a shipment halt.

“My buyer asked me to stop a shipment of leather goods – including bags, belts and wallets – worth US$300,000 (S$405,000) on April 6,” Mr Rahman told AFP.

“He’s a long-time buyer and now both of us are in limbo over the issue.”

Mr Rahman, who has been operating since 2008, usually sends goods averaging about US$100,000 to the United States every month.

Bangladesh exported about US$8.4 billion worth of goods to the US in 2024, of which US$7.34 billion came from the ready-made garments sector.

Bengali newspaper Prothom Alo also quoted A.K.M. Saifur Rahman, chief executive of ready-made garments producer Wikitex-BD, as saying that his US buyer had requested a halt to a shipment worth US$150,000.

“My US buyer said it is not possible to pass the extra cost on to their clients, so we need to lower the price,” Mr Rahman told the daily.

‘Request your patience’

Mr Md Anwar Hossain, government-appointed administrator of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), sent a letter to US-based buyers pleading for understanding.

“We are aware that several brands and retailers have already reached out to their Bangladeshi suppliers, expressing concern and, in some cases, discussing possible measures to mitigate the impact,” Mr Hossain wrote.

“We understand the urgency, but transferring the burden downstream to suppliers at this early stage will only exacerbate the stress,” he added.

“We humbly request your patience and support during this period as Bangladesh pursues a meaningful resolution.”

But former BGMEA director Mohiuddin Rubel said some buyers have already asked for shipments to be put on hold until further notice.

“In particular, smaller buyers are pressuring suppliers to either absorb the full tariff, or share the cost,” Mr Rubel said. AFP