Business

Exports fall for second month

September shipment down 4.6% YoY to $3.62b as Trump tariffs weighed on US orders
decline in Bangladesh exports
  • Exports fall 4.6 percent in September, second monthly decline

  • Garment shipments to US drop amid higher Trump tariffs
  • Quarterly exports still rise 5.64 percent to $12.31b
  • Leather, agriculture, pharmaceuticals offset jute export weaknes

The country's merchandise exports fell for the second consecutive month in September, due mainly to a decline in garment shipments to the American market following higher tariffs imposed by US President Donald Trump.

In September, exports dropped 4.6 percent year-on-year to $3.62 billion, according to data released by the Export Promotion Bureau (EPB) yesterday.

Garment exports, which account for about 84 percent of the country's annual export earnings, fell by 5.66 percent to $2.83 billion.

Of this, knitwear shipments brought in $1.63 billion, down 5.75 percent from a year earlier, while woven garments earned $1.20 billion, a 5.54 percent decline.

In August, the country's overall shipments had already fallen by 2.9 percent to $3.91 billion.

Despite the recent slump, total exports in the July-September quarter grew by 5.64 percent year-on-year to $12.31 billion, thanks to a steady growth in both knitwear and woven garment shipments.

Knitwear exports grew 4.31 percent year-on-year to $5.58 billion, while woven garments fetched $4.39 billion, up 5.41 percent.

Inamul Haq Khan, senior vice-president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), blamed higher tariffs by the US administration for the recent decline in exports.

"Drop in exports in August and September is normal as we predicted it earlier," he said. "Because it is the time for adjustment of the reciprocal tariff by the US garment importers, as they feared a higher tariff rate."

Besides, demand among US consumers has weakened due to higher retail prices following the new duty, as the additional costs were passed on to end buyers, said Khan.

According to local exporters, many American retailers and brands had increased orders between April and early August, when the baseline tariff stood at 10 percent, in anticipation of the rate hike that took effect on August 7.

By importing larger volumes before the new rates were enforced, US buyers reduced their orders later, leading to the export slowdown in August and September, they said.

BGMEA Senior Vice-President Khan said that July to September is typically a lean period for shipments, adding that exports to Europe, which are worth more than $25 billion annually, remained stable.

"However, the future prediction of garment items export is bright as the US-based buyers are coming with a good volume of work orders to the local exporters," he added.

Shovon Islam, managing director of Sparrow Group, also expressed optimism over future orders.

He said buyers are adjusting to the new tariff regime and are expected to place higher volumes of orders soon, as Bangladesh continues to face lower tariffs of around 20 percent compared with competing countries such as Vietnam and India.

Md Abul Hossain, chairman of the Bangladesh Jute Mills Association, said jute and jute goods exports declined in September due to a shortage of raw jute in the market.

"Even the local mills are facing the crisis of jute in the domestic markets, as the production is also low compared with demand," he said.

In the July-September quarter, jute and jute goods exports still rose 3.73 percent to $192.89 million, though September alone saw a 1.04 percent decline.

Meanwhile, leather and leather goods exports increased 10.6 percent year-on-year to $319.74 million in the first quarter of the fiscal year 2025-26.

Shipments of frozen and live fish, agricultural products and pharmaceuticals also performed well, according to EPB data.

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