Uncertainty Over US Tariff Policy Freezes Bangladeshi Garment Orders, Industry Warns

Uncertainty surrounding the United States’ tariff regime has put new orders for Bangladesh’s ready-made garment (RMG) exports at risk, with buyers said to be “sitting on the fence” as policy shifts cloud the sector’s outlook, according to industry sources.

Exporters said that the uncertainty over whether the temporary 15% tariff on Bangladeshi apparel exports to the US will be extended, raised or removed entirely has prompted American buyers to delay placing fresh commitments.

Several managing directors of Bangladesh-based export groups said the lack of clarity has stalled decision-making, leaving order books secure only through mid-year. One executive explained that buyers prefer to await a definitive tariff structure before committing to longer-term contracts.

The tariff was introduced after the US Supreme Court struck down earlier reciprocal tariffs, and although it was briefly reduced from 20% to 15%, exporters say that a uniform rate risks erasing Bangladesh’s competitive advantage relative to other Asian suppliers such as China and India.

Industry representatives also reported that some buyers are seeking price cuts on existing shipments following the tariff change, a move that could further squeeze already thin profit margins.

Economists have noted that the stop-start nature of US trade policy is amplifying risk in sourcing decisions. A distinguished fellow at a Dhaka-based policy think-tank pointed out that the legal back-and-forth over tariff measures has left buyers operating without a clear framework for planning.

The United States remains Bangladesh’s largest apparel market, accounting for around one-fifth of total garment exports, according to official trade data.

If prolonged, the freeze in new orders could undermine the export momentum of Bangladesh’s garment sector, a cornerstone of the nation’s economy that supports millions of jobs.