Garment Exports Worth Tk 10,000 Crore Face Uncertainty, Worrying Entrepreneurs

Economic Desk

Bangladesh’s ready-made garment industry faces a severe crisis after the U.S. imposed a 37% tariff on Bangladeshi apparel, effective April 9. Goods worth $800 million, equivalent to approximately Tk 10,080 crore, are stranded at ports and on ships.

BKMEA President Mohammad Hatem expressed concerns about the fate of goods prepared for export. “Will these goods be subject to the new tariff, or follow previous rules?” he questioned.

The tariff announcement by the U.S. President on April 2 has created ambiguity, particularly regarding orders placed before the tariff’s implementation but shipped afterward.

Entrepreneurs fear delays in shipments could halt export revenue, disrupt bank loan repayments, and hinder the opening of new LCs. These challenges may lead to factory closures and wage uncertainties for workers.

The industry employs over 5 million workers, 55% of whom are women. Any disruption in exports would directly impact their income and job security.

Kazi Ruhul Amin, General Secretary of the Bangladesh Garment and Sweater Workers Trade Union, highlighted that wage reductions are often the first step employers take during financial crises, affecting workers disproportionately.

Experts emphasize the urgency of diplomatic measures to address the issue. Neglecting the situation could jeopardize the livelihoods of millions and destabilize the garment sector.

Syed Sultanuddin Ahmed, Executive Director of the Bangladesh Institute of Labour Studies, warned of severe repercussions on workers’ incomes and employment if immediate action is not taken.