"Bangladesh’s RMG exports hit hard by global demand slump", 6 December 2025

Bangladesh’s readymade garment export has been hit hard as global demand slows amid economic sluggishness across major markets, exporters and experts said.

They said the slowdown has deepened following the revival of Trump-era tariff policies...which have reshaped global trade by raising costs across the value chain and heavily impacting fashion.

Buyers have been forced to scale back orders for apparel as consumers prioritise essential spending over discretionary items like clothing, they added.

Moreover, fluctuating inflation in key markets — especially the US, Europe, and the United Kingdom — has reduced consumers’ appetite for new apparel, forcing retailers to move from placing large orders to making smaller, more cautious purchases.

According to Export Promotion Bureau data, RMG exports declined for four consecutive months...

...Sparrow Group managing director Shovon Islam said the December–March period typically brings higher export volumes as factories ship summer and spring collections, but this year orders were visibly lower.

‘Orders have declined by at least 5–10 per cent so far, and the impact has hit knitwear and basic-item manufacturers the hardest,’ he said.

He added that orders from the EU, UK, and US have dropped sharply as the global trading environment is in turmoil following the imposition of the US tariff.

‘Prices went up after the tariff, but buyers’ budgets did not, so they simply reduced purchase volumes. If they used to buy three units, now they opt for one,’ he said...

Exporters warned that if the pattern continues, the industry could face tighter margins and employment pressures, particularly among small and mid-sized factories dependent on low-margin basic products...

Fazlee Shamim Ehsan, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association, said the impact of the US tariff is already visible in EU markets.

‘Global demand for RMG has declined, affecting most exporters. Consumers have changed their buying practices,’ he told New Age...

Inamul Haq Khan, senior vice-president of the Bangladesh Garment Manufacturers and Exporters Association, said buyers are cutting back on orders and that Chinese and Indian exporters are redirecting shipments to Europe to avoid US tariffs.

This, he said, has put additional pressure on Bangladeshi exporters.

A head of business development at a multinational buying agency, speaking on condition of anonymity, told New Age the US tariff has reshaped global buying practices and reduced overall imports.

‘Consumers curtailed their clothing expenses, which forced us to place fewer orders. Inflation and economic pressures in the US, UK and EU have made us go slow,’ the official said...