September export earnings down 4.5% amid initial effect of Trump's tariff

 
Bangladesh's export earnings fell by 4.5 percent year-on-year to $3.63 billion in September. The Export Promotion Bureau (EPB) released the data today (Sunday). In 2024, export earnings in September were $3.8 billion. However, the overall export earnings for the first quarter or three months (July-September) of the current fiscal still saw a positive growth of 5.64 percent, amounting to $12.31 billion, up from $11.65 billion recorded in the corresponding period of the last fiscal.

The EPB report shows that the dominant export sector, Ready-Made Garments (RMG), recorded a negative growth of 5.66 percent in September compared to the same month last year. Although Bangladesh is generally felt to have gotten the light end, at least relative to some other countries, of US President Donald Trump's tariff stick, there is still a supplementary 20% tariff being tacked on to the 15 percent sectoral tariff that was already in place for Bangladeshi textile imports into the US, reports UNB.

Other sectors also experienced setbacks. Agricultural products saw a negative growth of 2.37 percent. Plastic products registered a negative growth of 9.15 percent.

On a positive note, exports of engineering products surged by 36.43 percent. Furthermore, carpet exports increased by 21.67 percent, and frozen fish exports rose by 12.1 percent during the month under review.

Mohammad Hatem, President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), attributed the decline in RMG exports and the overall export earnings drop in September to the recent reciprocal tariff impact imposed by the United States.

The business leader explained that the negative growth in the RMG sector is due to most buyers currently holding off on placing new orders. They are reportedly attempting to push a portion of the additional 20 percent reciprocal tariff onto Bangladeshi suppliers.

Hatem stressed that exporters cannot afford to bear this extra burden, as they are already under immense pressure from the initial tariff adjustments and rising production costs.

He added that Bangladeshi exporters are also facing intense competition in the European Union (EU) and other markets, where Chinese and Indian manufacturers are increasing their shipments to offset their losses in the US market.

"We anticipate this slow momentum may persist for the next two to three months," Hatem said.

"However, we hope that our exports will recover once international buyers adjust to the new tariff structure. Exporters must be patient and prepared to tackle any pressure from buyers during this period," he opined.