Bangladesh: US apparel buyers delaying orders with factories amid pending tariff decision
"US buyers delay apparel orders over pending tariff call", 20 June 2025
Local apparel makers are seeing delays in the confirmation of work orders for the next summer season, as US retailers and brands wait for the final decision on reciprocal tariffs by the US administration, expected in early July...
They say work orders from US-based retailers and brands are still slow, as buyers are in a wait-and-see mood now...
Like other countries, these consignments from Bangladesh will face an additional 10 percent baseline tariff imposed by the Trump administration...
Exports have grown as US retailers and brands sourced goods globally to avoid the impact of Trump's high reciprocal tariffs...
"Despite global and local challenges, export data shows that apparel shipments to the US are still growing," said Ramzul Seraj, managing director of Elite Garments Ltd, which exports mainly to the US.
He also said the inflow of work orders from the US is still unchanged, as it continues as it was earlier.
However, Sharif Zahir, managing director of Ananta Group, which also ships a large portion of its production to the US, said order inflow may remain slow for another three months due to buyer indecision over the Trump tariffs and wider economic and political uncertainty.
He noted that some US retailers and brands have shared part of the 10 percent additional tariff, covering up to five percent themselves, although the duty is supposed to be paid by importers.
Some exporters said buyers have sought to divide the extra cost among the main partners, with fabric suppliers, manufacturers, and importers each sharing around three percent...