Exports Dip 4.5pc in September Amid US Tariff Impact

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Bangladesh’s export earnings fell by 4.5 per cent year-on-year in September, reflecting the pressure of global trade challenges and new tariff barriers in key markets.

According to the latest government data, the country earned USD 3.63 billion from exports in September 2025, down from USD 3.8 billion during the same month last year.

Despite the monthly decline, the overall export performance for the first quarter (July–September) of the current fiscal year remained positive, registering a 5.64 per cent growth. Total export receipts stood at USD 12.31 billion, compared to USD 11.65 billion in the corresponding period of the previous fiscal year.

RMG sector drives overall fall

The Ready-Made Garments (RMG) sector, which accounts for over 80 per cent of Bangladesh’s export earnings, witnessed a 5.66 per cent decline in September. Sector leaders said the drop came mainly due to the reciprocal tariff measures imposed by the United States.

While Bangladesh had previously faced a 15 per cent sectoral tariff on textile imports to the US, an additional 20 per cent tariff has recently been enforced, further squeezing exporters’ margins.

Mohammad Hatem, President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said the impact of the new tariffs was immediate and severe.

“The negative growth in RMG exports is largely due to buyers holding back new orders. Many are trying to shift a part of the additional tariff burden onto Bangladeshi suppliers,” he said.

Hatem added that manufacturers are already grappling with rising production costs, volatile exchange rates, and growing competition from China and India, which are aggressively expanding their market share in the European Union and other destinations.

“We expect this slow momentum to continue for another two to three months,” he noted. “However, we are hopeful that once international buyers adjust to the new tariff structure, orders will gradually pick up.”

Mixed performance in other sectors

Beyond garments, several export-oriented sectors also experienced a downturn. Agricultural products fell by 2.37 per cent, while plastic goods recorded a 9.15 per cent decline in September.

However, a few sectors managed to post impressive growth. Engineering products surged by 36.43 per cent, driven by higher demand for light industrial and electrical items. Carpet exports increased by 21.67 per cent, and frozen fish shipments rose by 12.1 per cent, providing some relief amid the broader slowdown.

Global headwinds persist

Trade analysts observe that the export slump reflects a combination of external and internal challenges. The reciprocal US tariffs, coupled with sluggish consumer demand in major economies and the rising cost of raw materials, are weighing heavily on Bangladesh’s export competitiveness.

The situation has been further complicated by geopolitical uncertainties, fluctuating freight costs, and the depreciation of key currencies against the dollar, which have made pricing more unpredictable for exporters.

Experts believe that while Bangladesh’s overall export base remains resilient, diversification and policy support will be crucial in the coming months to sustain growth.

They emphasise the need for enhanced value addition, faster adoption of green manufacturing technologies, and improved logistics efficiency to maintain global competitiveness.

Outlook

Despite September’s setback, the export sector is expected to stabilise later in the fiscal year as buyers resume orders and global trade conditions improve. Industry insiders, however, caution that policy consistency and effective trade diplomacy will be key to mitigating the effects of external shocks such as tariffs and protectionist measures.

Bangladesh’s export earnings have been on a steady growth path over the past decade, supported by the strong performance of the garment sector. But as the country navigates a shifting global trade landscape, strategic resilience and innovation will determine whether it can maintain that momentum in the coming quarters.