Thursday | 24 April 2025 | Reg No- 06
| BREAKING: |
Trump’s tariff war is hitting Bangladesh’s RMG (ready-made garment) exports to the US hard, and it’s a real wake-up call. The US is a massive market—$10 billion worth of apparel goes there yearly—but with tariffs jacking up costs (think 37% on top of the existing 17%), buyers might start looking elsewhere, like India or Vietnam. Bangladesh can’t just sit tight and hope for the best; it’s time to pivot smartly. ASEAN (Southeast Asia) and the CSTO (a Russia-led bloc) could be the move. Here’s why and how in plain English, but with some sharp thinking behind it.
ASEAN’s got 600 million people, growing economies like Indonesia and Thailand, and a hunger for affordable clothes—Bangladesh’s sweet spot. Plus, it’s closer than the US, so shipping’s cheaper and faster. The trick? Bangladesh needs to cut deals—think trade pacts or lower tariffs with ASEAN nations—and tweak its cotton-heavy lineup to include more synthetic fabrics, which ASEAN buyers vibe with. Infrastructure’s a bottleneck, though—ports and power need a serious upgrade to handle the shift.
Then there’s the CSTO—Russia, Kazakhstan, and a few others. It’s smaller, sure, but Russia’s got cash and loves a bargain, especially with Western sanctions making them look elsewhere. Bangladesh could slide in with low-cost RMG, maybe even leather or jute too, since Russia’s market isn’t flooded with competitors yet. The catch is logistics—shipping to Central Asia ain’t cheap—and political ties need warming up. Still, it’s a niche worth cracking.
The big brain move here is diversification. Sticking all your eggs in the US basket is risky when Trump’s playing hardball. ASEAN’s got volume, CSTO’s got untapped potential—together, they could offset losses. Bangladesh has to hustle, though: negotiate trade perks, boost productivity (those wage hikes are biting), and maybe even lure some Chinese factories fleeing tariffs to set up shop locally. It’s not just about dodging a trade war—it’s about outsmarting it.
The writer is Editor of Geopolits.com and author of the book Bengal Nexus
