Nightmare for Bangladeshi Exporters as Congestion and Tariffs Bite

Bangladesh’s export machinery is under significant stress as dual factors of congestion and U.S. tariff hikes converge against the backdrop of its apparel-heavy trade sector.

At Chattogram Port, containers are stacking up in docks and vessels are waiting at anchor, reflecting severe congestion that is delaying cargo operations. Storage yards are overwhelmed, causing bottlenecks for import and export shipments. Concurrently, Bangladesh faces an imminent 35% U.S. reciprocal tariff set to take effect on August 1, 2025. This move will nearly triple the average tariff burden—from 15% to around 50%—on most Bangladeshi goods heading to the U.S. market. Exporters report that U.S. buyers are delaying new orders or pushing cost-sharing arrangements for shipments already in transit. Over 800 companies that send more than 50% of exports to the U.S. are exposed to major risk, given their heavy dependence on this single market.

Trade experts and industry leaders are urging urgent negotiations with U.S. authorities and fast-track diversification of markets and product portfolios—foreign consumers as well as investor confidence may be at stake if delays continue unchecked. Together, port congestion and punitive tariffs form a pressing threat to Bangladesh’s export-driven economy.