Just hours after the US President Donald Trump unveiled a new reciprocal tariff on 2 April, a Bangladeshi exporter received a clear directive from an American buyer to suspend new production.

In an email, the US buyer said, ‘The process of evaluating the impact of the newly imposed import tariffs is ongoing. In this context, please refrain from starting any new production activities until further notice.’

On April 2, at 4:00 pm Washington time (around 2:00 am in Bangladesh), the US President announced the imposition of reciprocal tariffs. Before dawn the Bangladeshi exporter received email from American buyer instructing a halt in the production of new orders.

The United States is the single largest destination for Bangladesh’s exportable products.

Bilateral trade between Bangladesh and the United States reached a remarkable $10.58 billion in 2024, with Bangladesh maintaining a healthy trade surplus of $6.15 billion.

According to data from the US Department of Commerce, Bangladesh exported $8.37 billion worth of goods to the US in 2024, while imported from the US at $2.21 billion.

Of Bangladesh’s $8.37 billion exports to the US, the share of apparel amounted at 7.06 billion, the US data showed.

Bangladeshi exporters said that immediately after President Trump’s announcement, buyers began reaching out to Bangladeshi garment manufacturers.

Exporting factory authorities have also initiated communication with their US buyers to discuss the potential impact of the tariffs.

In some cases, the buyers themselves have contacted the exporters.

According to industry sources, some US apparel buyers have already begun assessing the possible implications of the newly announced tariff structure.

Based on those assessments, guidance is being sent to factory owners. In some instances, buyers are asking the exporters themselves to bear the cost of the imposed tariffs.

Instructions to suspend ongoing production and cancel new purchase orders have also started to come in.

Bangladesh readymade garment sector leaders said that some major US buyers have asked their Bangladeshi suppliers to bear tariffs as high as 37 percent. Several others have begun pressuring exporters to absorb the additional costs.

Most factory owners, however, are unwilling to speak publicly on the matter in order to preserve relationships with their clients.

Former president of the Bangladesh Garment Manufacturers and Exporters Association, Rubana Huq, informed reporters that some buyers had requested the suspension of production, while others had cancelled orders.

She also mentioned that, due to the increased tariffs, some buyers were asking for shipment delays as they would need to revise the price tags on certain branded products.

Fazlul Hoque, the former president of the Bangladesh Knitwear Manufacturers and Exporters Association, said that his own factory was not currently producing for the US market.

However, he had heard that production had been suspended in other cases. He further explained that one importer he knew had been instructed by the buyer to ‘hold’ three containers—two were due to arrive in New York on April 9, and another on April 12.

Describing the immediate impact of the newly announced tariffs as the biggest challenge, Fazlul Hoque said that consignments already en route to the US or under negotiation were of particular concern, as buyers might impose various conditions, including demanding discounts.

He expressed the probability that based on past experience; buyers would absorb part of the additional tariff themselves and shift the rest onto producers.

He also said that, under the pressure of reciprocal tariffs, US buyers might first attempt to push down apparel prices and could even request price reductions on orders already in hand.