Kamruzzaman Bablu :
Donald Trump’s return to power could present a blend of challenges and opportunities for Bangladesh’s textile industry, given his protectionist trade policies and unpredictable geopolitical strategies. His “America First” agenda, which prioritises domestic manufacturing, is unlikely to significantly impact low-value items, as such production is not viable in the U.S. However, this approach could result in higher tariffs on textile imports, squeezing profit margins for Bangladeshi apparel manufacturers and prompting U.S. retailers to reconsider their sourcing strategies, industry experts warn.
The United States, a major market for Bangladeshi garment exporters, is likely to influence the country’s ready-made garments (RMG) sector under Trump’s policies.
The extent of this influence will depend on how adeptly Bangladesh navigates the shifting global trade landscape and prepares for a more competitive fashion market.
During his previous tenure, Trump’s focus on trade barriers and reshoring production provided a slight competitive edge for Bangladesh, according to RMG leaders.
Mohammad Hatem, President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), stated:
“We are striving to secure 100 per cent GSP facilities in the U.S., a vital market for our apparel manufacturers. However, Trump’s earlier administration showed reluctance to reinstate GSP benefits for countries failing to meet labour and compliance standards, leaving us uncertain about the future.”
Despite these challenges, Hatem noted that trade tensions under Trump previously caused U.S. retailers to divert orders away from China, benefiting alternative suppliers like Bangladesh. He expressed hope that this trend could continue, increasing demand for Bangladeshi exports as brands diversify their sourcing destinations.
Industry insiders caution that a Trump-led administration might impose stricter compliance requirements, necessitating improvements in workplace conditions and sustainability practices. While Bangladesh has made significant progress in these areas, global consumers, including those in the U.S., increasingly demand products that meet higher labour and environmental standards.
The absence of Generalised System of Preferences (GSP) benefits remains a significant obstacle for Bangladesh. Without substantial advancements in labour rights and factory conditions, regaining GSP privileges under Trump’s presidency seems unlikely, placing Bangladeshi exporters at a disadvantage compared to competitors with duty-free access.
Mostafa Ahmed, Managing Director of Fatema Apparel Manufacturer, emphasised the need to diversify export markets:
“Over-reliance on the U.S. leaves Bangladesh vulnerable to policy shifts. Exploring markets in Brazil, China, and Japan can help mitigate risks.”
Despite the challenges, Trump’s aggressive stance on China could indirectly benefit Bangladesh. “The outcomes of his tariff policies are not entirely negative for us,” Ahmed noted.
A senior leader of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), speaking anonymously, highlighted the importance of meeting international labour and sustainability standards. He suggested focusing on value-added products, such as technical and eco-friendly apparel, to remain competitive. Investments in infrastructure, skill development, and technology could enhance the resilience of Bangladesh’s textile sector. Additionally, engaging with the U.S. government to negotiate favourable trade terms and advocate for GSP reinstatement should be prioritised on the country’s diplomatic agenda.
While Trump’s presidency may trigger policy changes affecting global sourcing, Bangladesh has the potential to adapt strategically. With foresight and preparation, the nation’s textile industry can weather the challenges, leverage opportunities, and sustain its position as a global textile leader.
