"Exports fall for 4th month as US tariff continues to bite", 5 December 2025

Bangladesh's merchandise exports have declined for the fourth consecutive month, as the reciprocal tariff measures by the United States and a slump in global demand continue to weigh on the apparel sector, the backbone of the country's export industry...

November exports amounted to $3.89 billion, down 5.54 percent compared with $4.11 billion in the same month last year.

Garments...remained the largest category, bringing in roughly $3.14 billion in November, a 4.8 percent decline from $3.30 billion recorded in the same month last year...

Industry leaders attribute the slump to reduced order volumes from major markets such as the European Union and the US, triggered by the newly applied reciprocal tariffs and global buyer caution.

First, US buyers have delayed placement of new orders following the increased tariffs on apparel imports, said Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem.

"As US tariffs have increased, buyers are now trying to shift part of the cost burden onto Bangladeshi garment manufacturers, which we simply cannot absorb," he explained.

Second, he said there is a notable shift in the EU market, where buyers are increasingly sourcing from lower-cost producers in China and India.

"Because Chinese and Indian manufacturers have slashed prices to reclaim orders lost from the US, EU buyers are turning to them for more competitive rates," Hatem added...

"We expect this crisis to continue for at least the next three to four months."..

He also said most buyers are placing only small, minimum-volume orders to keep their operations running.

The BGMEA president also stated that several garment factories have already shut down and more may close in the coming months...

He added that political uncertainty ahead of national elections has made buyers more cautious, reducing their willingness to place new orders in the near term.

Meanwhile, exports of plastic goods experienced a 15.5 percent fall to stand at $24.5 million compared to nearly $29 million in November 2024.

RN Paul, managing director of major plastic exporter RFL Group, however said the decline is largely owed to delays in shipment than a persisting issue...

He clarified that the drop does not reflect a loss in demand...

M Shahadat Hossain Sohel, managing director of Towel Tex Limited, linked the downturn to declining global demand, particularly in major markets like the United States and Canada. "Consumers are prioritising basic necessities and seeking the lowest prices. Luxury and fashion items are not selling."...

"In our terry towel exports, the decline is even steeper, around 40 percent," he said...