B Mirror Report: Bangladesh’s ready-made garment (RMG) industry is facing renewed uncertainty as American buyers hold back fresh orders amid confusion over the future of the United States’ temporary 15% tariff.

Industry insiders say that beyond a slowdown in new work orders, the shifting tariff structure has also led to renegotiations on existing shipments. Several US buyers are reportedly seeking a 2% price reduction on goods already in transit or yet to clear customs, following the tariff cut from 20% to 15%.

Exporters describe the current situation as a “wait-and-see” phase, with many US clients delaying long-term commitments until there is clarity on whether the 15% duty will be extended, revised, or withdrawn after the five-month period.

At least eight exporters said buyers are hesitant to finalise future sourcing plans due to frequent changes in US trade policy. Many are placing only limited-volume orders to meet immediate needs, avoiding large-scale commitments.

Shovon Islam, managing director of Sparrow Group, said buyers are monitoring developments before making further decisions. “Without a clear and stable tariff framework, it is difficult for them to plan ahead,” he noted.

SM Khaled, managing director of Snowtex Group, said his company’s order pipeline remains secure until June, but uncertainty looms beyond that timeframe. The US market accounts for roughly 20% of his company’s annual exports, which exceed $200 million.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), termed the situation “highly unpredictable,” warning that prolonged hesitation from buyers could significantly impact export growth.

Trade analysts say the evolving legal and policy landscape in the US has contributed to market instability. After the US Supreme Court invalidated earlier reciprocal tariffs, the Trump administration introduced revised measures under alternative legal provisions.

Economists argue that the possibility of further “targeted” or product-specific tariffs is keeping importers cautious, resulting in reduced order volumes and short-term purchasing strategies.

The US remains Bangladesh’s largest apparel export destination, accounting for around 20% of total garment shipments. According to data from the US Office of Textiles and Apparel (Otexa), imports from Bangladesh reached $8.18 billion in 2025, representing approximately 11% of total US apparel imports.

Earlier in April 2025, a 37% reciprocal tariff was imposed on Bangladeshi products, later reduced to 20% in August. The current uniform 15% rate, exporters fear, may erode Bangladesh’s competitive edge if applied equally to all sourcing countries.

Industry leaders say the earlier tariff differences allowed Bangladesh to capture orders shifting away from China, whose exports to the US declined sharply. Otexa figures show Chinese apparel shipments to the US fell 34% between January and November 2025, while Bangladesh’s exports rose by 12% during the same period.

A flat tariff structure, however, could intensify competition among major exporters and reverse recent gains.

The recent reduction from 20% to 15% has triggered fresh price negotiations. An email seen by industry sources shows a US buyer requesting a 2% downward adjustment in delivered duty paid (DDP) costs for goods that have not yet cleared customs.

Buying houses say they are under mounting pressure. A senior official at a Dhaka-based buying agency said intermediaries may have to absorb the requested discounts, as manufacturers are unwilling to cut prices further due to already narrow margins.

Exporters argue that during the higher-tariff period, they had already lowered prices to retain orders. Therefore, they believe any savings from reduced duties should be shared fairly rather than entirely retained by retailers.

While some exporters are considering negotiating a partial benefit from the tariff cut, others remain sceptical about buyers’ willingness to share gains.

For now, Bangladesh’s garment industry stands at a crossroads navigating policy volatility in Washington and intensified pricing pressure from its largest export market, as stakeholders await clearer direction on future US trade measures.