Bangladesh’s garment exporters are breathing a sigh of relief after the US confirmed a 20% tariff on apparel exports — a rate lower than many had feared. In recent weeks, there had been growing concern over the possibility of a steeper hike, which would have placed extra strain on the country’s biggest export industry.

The decision brings a measure of clarity to businesses that were operating under uncertainty. While a 20% tariff is still significant, industry leaders see it as manageable — especially compared to earlier reports hinting at a much higher rate. Many exporters had already started adjusting their pricing and sourcing plans in anticipation.

Garment manufacturing is central to Bangladesh’s economy, employing millions and contributing heavily to its export earnings. The US remains a key market, so any policy shift on that front tends to have an immediate impact. With this new tariff level now confirmed, many exporters say they can plan more confidently for the months ahead.

Still, the new rate does mean tighter margins, and factory owners are urging the government to provide short-term support to help them stay competitive. There’s also a renewed interest in diversifying export markets to reduce reliance on any single trade partner.

Overall, while the 20% duty isn’t ideal, it’s seen as a compromise that avoids more disruptive outcomes. The focus now shifts to efficiency, cost control, and long-term strategy in a sector that continues to play a critical role in the country’s growth.