By Imran Chowdhury BEM
Special to the Daily Tribune
A thunderclap has struck the lifeline of Bangladesh’s economy. The recent imposition of increased tariffs on Bangladeshi textile exports by the United States—the single largest importer of our garments—has sent shockwaves throughout the nation’s industrial and economic fabric. While officialdom attempts to downplay the severity, industry insiders, economists, and workers on the ground all whisper a terrifying possibility: the beginning of the end. If swift, strategic, and bold actions are not taken, this may mark the turning point where Bangladesh’s garment manufacturing hub transforms into a graveyard of shuttered factories, abandoned machines, and millions of dreams in tatters.
A Sudden Jolt, A Deep Scar
The U.S. has long been the most dependable export destination for Bangladeshi apparel. In the fiscal year 2023, Bangladesh exported over $10 billion worth of garments to the U.S. This relationship not only buoyed our foreign reserves but also kept nearly 4 million workers—mostly women—employed and hopeful. The sudden imposition of heightened tariffs—reportedly citing trade imbalances and unfair practices—comes at a time when the global apparel market is already squeezed by inflation, political instability, and supply chain disruptions.
The implications of this move go far beyond trade statistics. This tariff hike could lead to an immediate 20-30% drop in orders from U.S. retailers who are already scouting cheaper alternatives in Vietnam, Cambodia, and even Africa. Factories, already operating on razor-thin margins, cannot absorb these additional costs. The result? Order cancellations, downsizing, and outright factory closures.
The Domino Effect: Economic Catastrophe in Motion
Let’s be clear—this isn’t just about garments. The RMG (Ready-Made Garment) sector accounts for 84% of Bangladesh’s total exports. It feeds the nation’s forex reserves, sustains the banking system, keeps ports running, supports transportation networks, and indirectly fuels millions of other livelihoods. Any tremor in this sector ripples across the entire economy like an economic tsunami.
The consequence of reduced exports to the U.S. will be catastrophic. Factories will downsize or shut down, leading to mass layoffs. Unemployment will skyrocket. Remittance from the RMG sector, which keeps families afloat in rural Bangladesh, will shrink. Consumer spending will dry up. Bank defaults will rise. Foreign reserves will plummet further. With foreign investment already slowing down and inflation inching upward, this tariff is the perfect storm that could collapse the economic roof of the nation.
Who Will Pay the Price?
As usual, it will be the workers—the hands that built this $40-billion industry—who will pay the heaviest price. Most RMG workers are women from rural and impoverished backgrounds. For many, the factory was not just a job, but a ticket to independence, dignity, and survival. If the doors close, they have nowhere to go. Bangladesh does not have the infrastructure, retraining programs, or social safety nets to absorb this human fallout.
Furthermore, smaller and mid-sized garment manufacturers—many of whom borrowed heavily during the COVID-19 recovery phase—will be unable to service their debts. They will collapse first, and with them, a part of our industrial future will die.
The Government’s Tepid Response: Too Little, Too Late?
What’s astonishing is the silence and sluggishness from the corridors of power. Instead of a national emergency response, we are witnessing bureaucratic lethargy and political posturing. There is no comprehensive tariff mitigation plan, no aggressive diplomatic lobbying, no diversification roadmap. The government’s over-reliance on the RMG sector, without adequate investment in value addition, design innovation, or automation, is now haunting us.
Where is the push to explore alternative export markets aggressively? Where are the negotiations for preferential trade agreements with Europe, Canada, or the Middle East? Why haven’t we reduced our over-dependence on basic garments and moved up the value chain to high-tech apparel? These questions remain unanswered—while time runs out.
Bangladesh at a Crossroads: Wake Up or Wither Away
This moment calls for nothing short of an economic revolution. Bangladesh must treat this as a turning point, not just a temporary hurdle. The industry must be revamped with new technologies, green practices, and value-added designs. Trade diplomacy must be sharpened like a spear. Alternative markets must be pursued like a national obsession. Above all, worker rights, upskilling, and social protections must be prioritized.
Otherwise, the image of Bangladesh as the “garment capital of the world” will fade into the past. We may soon witness empty factories, growing slums, and a mass return to poverty for millions. The once-proud chimneys of Savar, Gazipur, and Narayanganj may turn into tombstones of a buried dream.
The graveyard is not yet dug. But the shovels are in motion.
Imran Chowdhury is a socio-economic analyst and author of several books on South Asian industry and politics. He writes from a standpoint of strategic foresight and hard realism.
