Bangladesh’s apparel exporters and their US buyers are gradually resuming production and shipments following the United States’ decision to impose a reduced 20% reciprocal tariff, down from a previously threatened 35% on Bangladeshi exports.

Industry insiders report that the tariff cut has brought a measure of stability to a sector that had been thrown into uncertainty, with several buyers now reinstating paused orders.

The revised duty, effective from 7 August, has encouraged renewed trade activity even as exporters brace for its long-term implications on pricing and demand.

Shovon Islam, Managing Director of Sparrow Group, which exports over $300 million worth of garments annually—more than half to the US—said that around $5 million worth of orders were stalled during the period of uncertainty.

“After the tariff was reduced to 20 per cent, our buyers got back in touch and gave us the go-ahead,” he told The Financial Express. Some buyers are also reportedly willing to adjust retail pricing rather than pass the additional tariff costs onto suppliers.

At Chattogram-based Asian Group, which sends 93% of its $340 million annual exports to the US, Executive Director Khondaker Belayet Hossain welcomed the breakthrough but noted that formal commitments are still pending. “Some buyers remain cautious and may take two to three more days to finalise decisions,” he said.

While major clients like Walmart and Target continued operations through the tariff talks, Belayet noted that some had earlier sought indirect discounts, such as requesting up to 3.9% off for delayed shipments—a first in recent dealings.

He stressed the need for Bangladeshi manufacturers to diversify export destinations and reduce production costs through automation and process efficiency. “Factories must cut costs by at least 1 to 2 per cent to remain competitive,” he added.

SM Majedur Rahim, Director of Giant Group, which has 70% of its production capacity geared towards the US, said the new tariff brings immediate relief.

“It restores some competitiveness,” he noted, though warned of a potential dip in orders next month due to possible retail price hikes.

Rakibul Alam Chowdhury, Chairman of RDM Group, confirmed that buyers who had suspended orders scheduled for shipment after 30 July have now requested resumption of production. “We expect formal confirmations after US offices reopen fully on Monday,” he said.