As they seek clarification on President Donald Trump’s plan to slap a 37 per cent duty on Bangladeshi goods, a number of US garment purchasers have asked Bangladeshi suppliers to temporarily delay shipments until 10th April. According to industry sources, other retail behemoths like Walmart and Levi’s are apparently looking for discounts, and at least one significant US client has told its suppliers in Bangladesh to bear the additional duty.
A representative from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) confirmed that GAP has also directed its suppliers to bear the extra tariff costs. With the new tariff set to take effect on 9th April, the BGMEA’s Chittagong office has urged the Bangladesh Shipping Association to expedite US-bound shipments currently delayed at Chattogram Port and inland container depots.
Exporters are concerned that failing to meet the deadline could push their products into a higher-duty category, jeopardising profit margins and potentially leading to order cancellations. Former BGMEA Vice President Rakibul Alam Chowdhury stressed the urgency, stating, “In the next three days, the authorities and shipping lines must ensure these containers are shipped.”
In an open letter to global buyers, the BGMEA called for patience and solidarity, emphasising the importance of maintaining partnerships during this crisis. The letter acknowledged the pressures on buyers and urged them not to transfer the financial burden onto suppliers at this early stage, warning that such actions could worsen the situation in the sector.
Syed M. Tanvir, managing director of Pacific Jeans Ltd, stated that none of their clients have requested a delay in production, and they continue to ship as instructed. However, Mohiuddin Rubel, a former BGMEA director, noted that some smaller buyers are pushing suppliers to either absorb the full tariff or share the burden.
Shovon Islam, managing director of Sparrow Group, anticipates pricing pressure in future negotiations, predicting that buyers may request revised price tags reflecting the new duty structure.
Former BGMEA President Faruque Hassan called for strategic negotiations, suggesting that Bangladesh explore trade facilitation options to alleviate the tariff burden. He expressed concern that reducing duties significantly for the US might negatively impact exports to other markets, particularly the European Union, where Bangladesh currently enjoys duty-free access.
He cautioned that higher tariffs could drive inflation in the US, affecting consumer spending and apparel demand, which would ultimately hinder Bangladesh’s export growth.
