Mild slowdown observed in global garment supply chain after US tariff
According to several foreign denim apparel traders, there is somewhat of a slowdown being observed in the global garment supply chain due to US President Donald Trump’s recent reciprocal tariffs and political uncertainty in Bangladesh.
Trade for supply nations including Bangladesh, China, India, Pakistan and Vietnam has been impacted as a result of the increase in tariffs driving up clothing prices and decreasing demand, particularly for denim products, in the US market.
International clothing retailers and brands have adopted a ‘wait-and-see’ strategy because of the uncertainty surrounding the Trump administration’s reciprocal tariff policy for China and India, two significant actors in the global garment supply chain.
According to foreign corporations, retailers and brands in Bangladesh are inquiring but not verifying large work orders.
Sekip Hayit, an executive of Turkish chemical company Resas Chemie stated that political instability is a big problem in Bangladesh and the country must hold its elections at the earliest as changes continue to happen. He also added that buyers have now gone into waiting mode and are not confirming any work order as business will come but not at the moment. According to him, the tariffs, the dispute between Israel and Palestine and the crisis between Russia and Ukraine are all contributing factors to the slowdown, which is not just happening in Bangladesh.
Resas Chemie, which manufactures its goods in Turkey, is constructing a textile chemical manufacturing facility in the Jamalpur Economic Zone, according to Sekip.
Mohammad Ziaur Rahman, Managing Director of Resas Chemie Bangladesh Ltd., said that they currently sell US $ 24 million worth of chemicals in Bangladesh each year and target to reach US $ 35 million by the end of next year. He also opined that currently, the market is very tight.
The Sales Chief of Turkish denim fabric supplier Bossa, B Hande Yildirim, stated that her business intends to establish a denim mill in Bangladesh in the future.
Currently, Bossa exports roughly 3% of the four million metres of fabric it produces each month to Bangladesh. Yildirim, who has been providing denim textiles to Bangladesh for the past 15 years, stated that Bossa’s performance here is not as good as it once was.
Australian wool fibre supplier Woolmark’s Manager of Supply Chain Initiatives, Stephen Hill said that to better wool production as global demand for wool products continue to grow, his company is training 60,000 farmers. According to Stephen, wool is being used more and more in the production of clothing all across the world, including denim. According to him, wool imports from Bangladesh are also rising. He said that Bangladesh imported US $ 80 million worth of wool goods in 2022, primarily yarn and textiles.
Azgard Nine Limited, a Pakistani denim fabric provider, is doing well with its current clientele in Bangladesh, according to Sana Arshad, Deputy General Manager, but it is still having trouble attracting new clients.
Currently, her company ships 80,000 metres of denim fabrics per month to three or four Bangladeshi enterprises; in the near future, she hopes to increase that amount to 400,000 metres.
