Bangladesh’s exports of goods have decreased for the fourth consecutive month due to the impact of reciprocal tariff measures by the United States and a slowdown in global demand affecting the country’s key export sector, the apparel industry.
The latest data from the Export Promotion Bureau (EPB) reveals that in November, exports amounted to $3.89 billion, marking a 5.54 percent decline compared to $4.11 billion in the same month last year. Garments, which contribute more than 80 percent to the country’s export earnings, remained the top category, generating around $3.14 billion in November, a 4.8 percent drop from the previous year.
Although there was a slight overall growth of 0.09 percent during July–November, totaling $16.13 billion, the breakdown shows that knitwear exports fetched $8.85 billion and woven garments $7.27 billion, with knitwear declining by 7 percent and woven garments by 3 percent compared to the previous year.
Industry leaders attribute this decline to reduced orders from major markets like the European Union and the US, driven by the newly imposed reciprocal tariffs and cautious behavior from global buyers. Mohammad Hatem, President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), mentioned that US buyers are delaying new orders due to increased tariffs, trying to transfer some of the cost burden to Bangladeshi garment manufacturers.
Hatem also noted a shift in the EU market, as buyers are turning to lower-cost producers in China and India, who have reduced prices to regain lost orders from the US. This challenging environment has led to a tough situation for Bangladesh’s garment exporters, with expectations that the crisis will persist for the next few months.
Mahmud Hasan Khan, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), highlighted external market pressures and domestic challenges as the main reasons for the decline in garment exports. He mentioned that many competitor countries are also experiencing similar declines, except for Pakistan.
Khan explained that changes in purchasing patterns earlier in the year and rising global prices have dampened consumer demand, further impacting apparel exports. He also mentioned that several garment factories have closed, with more expected to follow in the coming months, although production is shifting towards larger and more efficient factories.
Regarding the outlook for export growth post-Christmas, Khan expressed limited optimism, citing that the Western holiday season does not significantly impact Bangladesh’s exports. He also mentioned that political uncertainties ahead of national elections have made buyers more cautious about placing new orders in the short term.
In the plastic goods sector, there was a 15.5 percent decrease in exports in November, reaching $24.5 million compared to almost $29 million in the same month last year. RN Paul, managing director of RFL Group, a major plastic exporter, attributed this decline to shipment delays rather than a persistent issue, expecting an improvement in the coming weeks.
M Shahadat Hossain Sohel, managing director of Towel Tex Limited, connected the downturn to declining global demand, particularly in key markets like the US and Canada. He noted that consumers are prioritizing essentials over luxury items, leading to a significant decline in Bangladesh’s export sector amid challenging global economic conditions.
In other major sectors, leather and leather products saw a 5.14 percent growth, agricultural goods fell by 24.68 percent, and chemical products increased by 8.35 percent.