Export earning dips 2.93% in August
US buyers rushed July purchases fearing a tariff hike, boosting July exports but slowing August, say exporters
Bangladesh's export earnings fell 2.93% year-on-year in August 2025, standing at $3.92 billion compared to $4.03 billion in the same month last year, according to data from the Export Promotion Bureau (EPB). The decline comes despite a strong overall performance in the opening months of the fiscal year.
Total export earnings in July-August of the current 2025-26 fiscal year reached $8.69 billion, up 10.61% from the same period of the previous fiscal year.
The country saw record $4.77b exports in July, up nearly 25% YoY, hitting an all-time monthly high at $4.77 billion.
Exporters and experts say US buyers rushed July purchases fearing a tariff hike, boosting July exports but slowing August. Lower demand in key markets also contributed, though exports are expected to rise in the coming months.
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Sheikh Mustafiz, director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told TBS that the 20% US tariff on Bangladesh, which was reduced from 35% through negotiations, took effect in August. However, fearing the initial higher tariff imposed by the Trump administration, many US buyers asked for shipments in July.
This caused goods that would normally have been exported in August to be counted in July, resulting in 25% growth that month, which impacted August, he said.
Mustafiz added that inflation in the US, Canada, and other markets has also lowered consumer demand, contributing to the decline. However, he expects exports to rise in the coming months.
Anwar Hossain, former vice chairman of the Export Promotion Bureau (EPB), also echoed this view. He said, "Fearing the increased tariff, many US buyers requested shipments early in July, which led to lower exports in August."
Mohammad Hatem, president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), made a similar observation.
EPB's statistical analysis confirms this trend. Combined exports for July and August grew by around 11%, which is encouraging. The US, as a single market, is Bangladesh's largest export destination, accounting for about 18% of total exports.
According to EPB data, ready-made garment exports in August fell nearly 5% compared to the same period last year. Agricultural products declined by 4%, and leather and leather goods fell by 1.55% year-on-year.
On the other hand, some sectors saw growth during the same period: frozen and live fish rose 23%, plastic goods 2%, jute and jute products 9%, and home textiles 12%.
