Bangladesh: Garment factories receive surge in orders as reciprocal tariffs take effect
"US orders surge for Bangladeshi garment factories", 15 August 2025
Since the US administration’s reciprocal tariff took effect, many American buyers have been negotiating with Bangladeshi factories for additional orders of ready-made garments (RMG). High tariffs on India and China have prompted these buyers to shift orders from those countries.
...as part of a long-term strategy to secure US orders, major Indian exporters have begun contacting top Bangladeshi exporters for garment production.
In addition, Chinese investors have shown interest in setting up garment factories in Bangladesh...
Several entrepreneurs in the export-oriented RMG sector said that in the past two weeks they have received increased inquiries from US buyers. Orders that had previously been suspended are now starting to return.
However, most of these inquiries are going to manufacturers who have long-standing relationships with American buyers — and a large portion of these orders are being relocated from India...
On 31 July, US President Donald Trump revised the reciprocal tariff on Bangladeshi exports to the US, raising it to 20 per cent — the same rate as Vietnam.
In comparison, Chinese goods now face a 30 per cent tariff, while Indian goods are taxed at 25 per cent...Trump has imposed an extra 25 per cent duty on Indian products. This additional Indian tariff will take effect on 27 August, though the reciprocal tariff for all countries came into effect on 7 August...
Snowtex Group...have already received additional inquiries from several US buyers.
“...These orders are mainly being shifted from China and Vietnam.”...
Shovon Islam, Managing Director of...Sparrow Group of Industries, said multiple US buyers are in talks to shift orders from India. One US company is also discussing moving next year’s summer orders from Vietnam to Bangladesh, because they are shifting high-value garments from China to Vietnam and moving medium-value garments from Vietnam to Bangladesh.
...“For next spring, we already have 5–10 per cent more orders than before, and for summer, we have 10–15 per cent more. To manage this, we have obtained buyers’ approval to increase overtime from 2 to 3 hours...”...