Bangladesh’s export earnings declined by 4.61% year-on-year in September 2025, falling to $3.6276 billion, a drop of $175.3 million compared to $3.8028 billion recorded in September 2024, according to the latest data released by the Export Promotion Bureau (EPB) on Sunday.
The setback comes despite a 5.64% year-on-year increase in export revenue during the first quarter of the current fiscal year (July–September 2025), which saw total earnings reach $12.31 billion, up from $11.65 billion in the same period last year.
The September contraction was driven primarily by a 5.66% decline in ready-made garment (RMG) exports—the country’s dominant export sector. Additional losses were recorded in agricultural products (down 2.37%) and plastic goods (down 9.15%).
However, non-traditional sectors showed strong growth: engineering goods exports surged by 36.43%, carpet shipments rose by 21.67%, and frozen fish exports climbed by 12.1%, underscoring ongoing, albeit uneven, progress in export diversification.
US tariff shock hits garment orders
Mohammad Hatem, President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), attributed the RMG downturn to mounting pressure from US reciprocal tariffs. “Most international buyers have paused new orders and are now attempting to shift a portion of the additional 20% tariff burden onto Bangladeshi suppliers,” he said.
Hatem stressed that exporters are in no position to absorb these extra costs. “They’re already grappling with the initial impact of tariff adjustments and persistently rising production expenses,” he noted.
Compounding the challenge, Bangladeshi manufacturers now face intensified competition in the European Union and other key markets, as Chinese and Indian exporters redirect shipments to offset their own losses in the US.
“We fear this slowdown could persist for the next two to three months,” Hatem warned. “But once international buyers adapt to the new tariff regime, we expect a recovery. In the meantime, our exporters must remain patient and resilient in the face of buyer pressure.”
With global trade headwinds intensifying, policymakers and industry leaders are under growing pressure to accelerate diversification, enhance value addition, and strengthen trade diplomacy to shield Bangladesh’s export economy from external shocks.