DHAKA – Exporters in several Asian nations are reeling under US President Donald Trump’s tariff blow as buyers halt garment orders amid uncertainty.
From basic garments to sports apparel, the industry in Bangladesh and other nations is facing renewed turbulence after US president imposed new tariffs on cotton products, prompting American buyers to cancel orders worth hundreds of thousands of dollars.
The new tariff jacked up tariffs on Bangladeshi cotton-based exports from 16pc to a staggering 37pc, a move that industry leaders say is already impacting business. Those linked with industry confirmed the cancellation of shipment of leather accessories.
According to official figures, Bangladesh exported around $8.4 billion in goods to the United States last year, with $7.34 billion coming from the ready-made garments (RMG) sector alone.
Several other garment exporters got cancellation request from US clients regarding massive shipment. The tariff hike comes as a major blow to an industry already recovering after political uncertainty and Covid shock.
Exporters are urging international community to engage in diplomatic negotiations to avoid long-term damage to one of the country’s most vital economic sectors.
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