Story perspectives

Bangladesh Garment Exports Struggle Amid Tariffs and Unrest

2/12/2026

Summary

Story summary

Bangladesh's garment industry, which accounts for 80% of exports and over 10% of GDP, has six months of declining exports due to U.S. tariffs and unrest after the ousting of Prime Minister Sheikh Hasina in 2024.
A new trade agreement reduced tariffs to 19% and allows some duty-free access for U.S.-made garments.
Industry leaders say elections could bring stability and policy consistency, though costs and labor unrest strain manufacturers' recovery.

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Story summary

Bangladesh's garment industry, which accounts for 80% of exports and over 10% of GDP, has six months of declining exports due to U.S. tariffs and unrest after the ousting of Prime Minister Sheikh Hasina in 2024.
A new trade agreement reduced tariffs to 19% and allows some duty-free access for U.S.-made garments.
Industry leaders say elections could bring stability and policy consistency, though costs and labor unrest strain manufacturers' recovery.