Fresh challenges have emerged for Bangladesh's ready-made garment sector as the United States imposes a dual barrier maintaining a steep 35% tariff while introducing a stricter requirement of 40% local value addition for garments to qualify as "Made in Bangladesh." Industry leaders warn this move could destabilise the country's woven garment exports to its largest single-country export market.

Sources from the commerce ministry revealed that these new conditions come at a time when Bangladesh is already navigating complex trade dynamics and mounting global competition. A delegation led by Commerce Adviser Sk Bashir Uddin is currently in Washington, aiming to negotiate tariff relaxations and ease the rigid “Rules of Origin” clause.

The concern lies in the heavy reliance on Chinese fabrics, particularly in the woven garment segment. Approximately 70% of the woven materials used in items like shirts and trousers are imported from China, making it nearly impossible to meet the new value threshold under the US’s calculation method, which excludes producer profits.

While the knitwear sector is less affected due to strong domestic fabric supply, the woven segment stands vulnerable. Experts argue that rapid investment in local fabric manufacturing and backward linkages is the only long-term solution.

The US has also expressed concern over growing Chinese investment in Bangladesh's textile landscape. These shifts reflect Washington’s broader strategy to limit China’s global influence.

As negotiations continue, Bangladesh's apparel exporters hope for policy flexibility to safeguard a sector that remains central to the country’s economy and employment.