Leading garment producer Bangladesh holds crisis talks on US tariffs

Bangladesh’s interim government convened urgent crisis talks on Saturday after US President Donald Trump imposed steep new tariffs on the country’s garments — threatening a major pillar of its economy.

The move has rocked the world’s second-largest garment-producing nation, where textiles make up 80 percent of all exports.

The White House announced on Wednesday a sharp increase in duties on Bangladeshi goods, raising cotton product tariffs from 16% to 37%, and polyester from 32% to 37%.

The hike targets $8.4 billion worth of annual garment exports to the US — nearly one-fifth of Bangladesh’s total ready-made garment output.

"Chief Adviser Professor Muhammad Yunus has convened an emergency meeting... to discuss the US tariff issue," read a government statement, noting the talks will be held in Dhaka with senior experts and economic officials.

The National Board of Revenue is also expected to review the financial impact of the tariffs.

Industry leaders are already bracing for the fallout. “Buyers will go to other cost-competitive markets — this is going to be a massive blow for our industry,” said Rakibul Alam Chowdhury, head of RDM Group, a major manufacturer.

Anwar Hossain, administrator of the powerful Bangladesh Garment Manufacturers and Exporters Association (BGMEA), warned the sector was “not ready” for such a jolt.

The garment industry in Bangladesh — a global supplier for brands like Gap, Levi’s, and Tommy Hilfiger — has been slowly recovering after political upheaval last year toppled the previous government.

The latest US tariffs now threaten to upend that fragile recovery, just as the country seeks to stabilize under new leadership.