Bangladesh’s garment sector is well-positioned to fulfill orders for the Christmas season, with local suppliers having secured sufficient work commitments from US clothing retailers and brands. However, the shipment timeline and profitability remain uncertain due to ongoing tariff negotiations involving the Trump administration.
Manufacturing for the upcoming holiday season is set to ramp up from June and continue through July. Shipping is scheduled to commence in August, aiming to ensure that goods reach US retailers in November and December for holiday sales. Notably, the fall and winter seasons, along with Christmas and Thanksgiving, are peak periods for apparel sales in Western markets.
Despite the secured orders, most exporters are awaiting a final decision from President Trump regarding reciprocal tariffs. The administration has imposed a 90-day pause on new tariffs, leaving industry players in a holding pattern as they wait for further clarity.
Looking ahead to the summer season, negotiations over future work orders are still underway. Both suppliers and buyers are hesitant to finalise volumes and prices until Trump’s tariff policies become clearer. The current baseline tariff of 10 per cent remains in effect for Bangladesh, although China faces a significantly higher rate of 145 per cent on imports. While Trump has indicated a possibility of reducing tariffs on Chinese goods, he has also emphasised that these reductions will not bring tariffs down to zero.
Bangladeshi exporters are actively exploring opportunities to boost exports to Europe and other regions, benefiting from favourable or zero tariff arrangements. Nonetheless, they face increasing competition from China and Vietnam, which are also seeking to expand their market shares in response to potential reductions in US shipments caused by high tariffs.
Industry experts, including Faruque Hassan, former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), emphasize a resilient outlook. Hassan suggested that while higher tariffs might lead to lower prices, exporters should maintain a positive and strategic approach in negotiations.
Currently, over 900 local garment factories export apparel to the US, with approximately 25 factories heavily reliant on the American market. Bangladesh ranks as the third-largest garment exporter to the US, accounting for 9.3 per cent of the more than $100 billion worth of garments imported annually by the country. Industry stakeholders remain cautiously optimistic about sustaining and expanding their US market share amid ongoing tariff uncertainties.
