Overview

• The U.S. has implemented a 37% tariff on Bangladeshi garments and a 44% tariff on Sri Lankan garments, disrupting their key export industries.
• Bangladesh's garment sector, which accounts for over 80% of its export earnings and employs 4 million people, is bracing for order cancellations and economic strain.
• Sri Lanka, whose garment industry sends 40% of its exports to the U.S., has formed a panel to assess the impact of the tariffs on its economy.
• India, facing a lower tariff rate of 27%, is seeing increased interest from U.S. buyers, positioning it as a potential beneficiary of the trade shift.
• Bangladesh's government is in discussions with the U.S. to seek relief, while garment exporters in both countries are urging for government support to mitigate losses.