“More RMG buyers flock to Bangladesh after Trump tariff on China, India”, 12 August 2025

When US President Donald Trump imposed a 35% reciprocal tariff on Bangladeshi apparel – significantly higher than the proposed rates for India and Pakistan – exporters braced for a severe setback.

What initially seemed like a heavy blow to Bangladesh's garment exporters has unexpectedly turned into a major opportunity, with many buyers -- who would previously source from China and India -- are now making initial negotiations for apparel orders.

However, in a dramatic last-minute revision just hours before the 1 August deadline, Washington reduced Bangladesh's tariff to 20%, while raising India's to 25%, with an additional 25% tariff scheduled for India on 27 August over its purchase of Russian oil.

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Buyer queries (initial negotiation for order) are now pouring in from buyers who previously sourced from India, China, and Myanmar. Local garment makers, sensing an opportunity, are dusting off expansion plans, reopening shuttered factories, and considering fresh investments.

The ripple effect is extending beyond domestic firms. Chinese investors, eyeing the changing global sourcing patterns, are actively exploring Bangladesh as a new production hub. What began as a threat has now evolved into one of the country's most significant trade advantages in years.

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BGMEA leaders believe the improving market conditions could revive both large and small closed factories.

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Despite optimism, some remain cautious. They worry that countries losing US market share will compensate by competing fiercely in Europe, potentially lowering prices and squeezing Bangladeshi exporters.