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Article

5 Apr 2025

Bangladesh: Garment supplier predicts 20-30% order reduction if US tariffs go ahead

"Purchase orders may drop by 20–30pc amid US reciprocal tariffs", 5 April 2025

Shovon Islam, managing director of leading garment exporter Sparrow Group of Industries, held meetings with three buyer companies in the United States last month. The US buyers separately expressed their positive mindset in shifting women’s clothing orders from China to Bangladesh.

In an over-the-phone conversation with Prothom Alo, Shovon Islam said, “After Donald Trump imposed the 37 per cent reciprocal tariff on Bangladesh, I contacted the buyers again regarding the purchase orders. They are now delaying the process, indicating that the orders are now uncertain.”

He continued, “A number of buyers informed us that the demand for readymade garments in the US would subside due to the tariff. If it happens, purchase orders may go down by 20-30 per cent next spring and winter.”

Garment exporters said the immediate impact of the US reciprocal tariff may be limited, but long-term impact on purchase orders could be severe if the tariff remains in place. As the US buyers have already begun recalculating costs, the Bangladesh government should initiate talks with the US without any delay...

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