By dawn, a Bangladeshi exporter received an email from an American buyer instructing them to halt the production of new products for their orders.

The email, obtained by Bonik Barta, says, “While we are trying to assess the impact of tariffs on imported goods, please put a hold on all manufacturing and shipment. Please do not initiate any manufacturing until you hear from us. I have also copied our India Commercial team to advise not to pick up any product until we have complete clarity on / impact of the tariffs.”

Bangladesh’s largest export destination is the U.S., with a trade volume of 10.5 billion dollars. Of that, 2 billion dollars are for imports from the U.S., and over 8 billion dollars are for exports to the U.S., with 87 percent of it being ready-made garments.

Bangladesh’s garment exports are most affected by Trump’s new tariffs. As a result, businessmen in the sector are deeply concerned about the situation.

After Trump’s announcement, U.S. buyers quickly began contacting Bangladeshi garment exporters. Factory owners also reached out to discuss the impact of the new tariffs. In some cases, buyers initiated the contact themselves.

According to sources, some U.S. apparel buyers have already started assessing the potential impact of the new tariff structure. As a result, they have begun guiding factory owners. In some cases, buyers ask exporters to bear the newly imposed tariffs.

Furthermore, some buyers are issuing instructions to cancel orders or suspend ongoing production.

Reliable sources from the garment industry have revealed that Walmart, a U.S. company, has asked some of its suppliers in Bangladesh to pay a 37 percent tariff. Another U.S. company, Gap, has also started pressuring suppliers to pay the tariffs. Most factory owners, however, have refrained from commenting on this issue to maintain their relationships with buyers.

Former BGMEA president Dr. Rubana Huq told Bonik Barta, “Some buyers have asked to suspend production, while others have canceled orders. Additionally, due to the increased tariffs, some brands are asking for shipment delays as product price tags may need to be adjusted.”

According to statistics from the U.S. Department of Commerce’s Office of Textiles and Apparel (OTEXA), the U.S. imported 7.28 billion dollars of apparel from Bangladesh in 2023. In 2024, this increased to over 7.34 billion dollars.

In the first two months of 2024, the U.S. imported over 1.5 billion dollars worth of apparel from Bangladesh, which is 26.64 percent higher compared to January and February 2023.

Leaders from another apparel association, BKMEA, have also acknowledged the risks related to ongoing orders. The association’s former president, Fazlul Hoque, told Bonik Barta, “Currently there is no ongoing production in my own factory for the U.S. market. However, I’ve learned that others have suspended production. A familiar importer of mine had two containers scheduled to reach New York on April 9 and another on April 12. But the buyer has asked to ‘hold’ them.”

Fazlul Hoque pointed out that managing the immediate impact of the new tariffs is the biggest challenge. He said, “The consignments already on their way to the U.S. and those under negotiation are the main concerns. Buyers may impose discounts or other conditions on these consignments. From previous experience, I believe buyers will bear part of the additional tariff cost. The rest will be passed on to producers like us. Under the pressure of reciprocal tariffs, U.S. buyers may first push us to lower the prices of our garments. Now, buyers may even ask us to reduce the prices of our orders.”

Industry insiders also note that Bangladesh typically exports low-cost or basic garments to the U.S., which are highly price-sensitive. Competition in basic garments is also higher. Therefore, even after the imposition of reciprocal tariffs, the price increase at the consumer level is expected to be relatively low. If prices are raised, sales may decline, which would be harmful to U.S. buyers.

According to the Export Promotion Bureau (EPB) of Bangladesh, other products exported to the U.S. besides apparel include headgear, footwear, other textiles, feathers and feather products, pharmaceuticals, leather goods, fish, grains, and furniture.