Bangladesh’s once-thriving home textile export sector is facing a challenging period, as rising tariffs, global uncertainties, and a slowdown in orders threaten growth. Despite exporting products like bed sheets, pillow covers, curtains, cushions, and terry towels to 131 countries, the industry is grappling with reduced demand and rising operational hurdles.
The United States, India, Germany, France, the UK, and Canada remain key markets, but of the approximately 150 home textile factories in Bangladesh, only 50–60 are currently exporting, and many of those are operating well below capacity.
Tariffs Impacting US Market Access
One of the major concerns has been the 10% reciprocal tariff that took effect in April, pushing the effective tariff on Bangladeshi goods to 35% in the US. This has led to a significant drop in orders from American buyers.
“If the tariff is not reduced, we’ll have to rely only on the EU market,” said Moinuddin Ahmed, Managing Director of Shamsuddin Towels, which has been exporting since 1990. His factory, based in Feni BSCIC, has a capacity of 70 tonnes per month, but 40 tonnes go unutilized due to lack of orders.
Post-COVID Boom Reversed by Global Turbulence
The industry saw a sharp rebound after COVID-19, with home textile exports rising from USD 760 million in FY 2019–20 to USD 1.62 billion in FY 2021–22. However, the Russia-Ukraine war and ongoing economic volatility have reversed this growth. In FY 2024–25, Bangladesh exported USD 150 million worth of home textiles to the US, according to Export Promotion Bureau (EPB) data.
Additional Pressure from Energy Shortages
Beyond tariffs, local manufacturers are also facing energy supply issues. M Shahadat Hossain, former chairman of the Bangladesh Terry Towel and Linen Manufacturers and Exporters Association (BTTLMEA), shared that his factory had no exports for nearly two months last year due to a gas shortage.
“The gas supply has slightly improved, but now tariffs are the biggest threat. Even a 2–3% higher duty than competitors could drastically cut our US market share,” he warned.
Looking Ahead
Industry leaders are urging for diplomatic efforts to lower reciprocal tariffs, ensure consistent gas and energy supply, and promote product diversification to remain competitive globally.
Without strategic interventions, Bangladesh risks losing its hard-earned foothold in major export markets—particularly the US—and weakening a sector that provides jobs and economic support to thousands of families.
