Textile and garment orders for the Christmas season in Europe and the United States usually start in October. However, this year, the US's reciprocal tariff policy has significantly dampened the enthusiasm of downstream customers to stock up, having a negative impact on major global textile and garment exporting countries. From the industry data of the past two months, core indicators such as the operating rate of textile enterprises in various countries and their export performance show a clear correlation with the final tariff rates agreed upon between the countries and the United States. For instance, India significantly raised its tariffs on the United States to 50%, an increase of 24 percentage points compared to April, directly triggering a chain reaction such as the decline in domestic cotton prices and yarn prices. Although Vietnam and Pakistan have taken on some transferred orders from China and India, the pressure of high tariffs and the shortcomings in their industrial chains still restrict their growth space.

Cost pressure has pushed up yarn prices, and the recovery of orders has fallen short of expectations

The peak season for Bangladesh's textile and garment exports usually begins in the middle to late October. In previous years, orders from Europe and North America would be released in a concentrated manner at this time. However, this year, due to multiple unexpected factors, the pace of order placement has significantly slowed down. On the one hand, a fire broke out recently at the cargo center of Dhaka Airport, damaging a large number of high-value and urgent order goods. The reconstruction of the airport will take several months. Industry insiders predict that the losses caused by this accident may exceed 1 billion US dollars. On the other hand, Chittagong Port has significantly raised its freight rates, with an average increase of 41%, directly increasing the cost of import and export trade.

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