I have not witnessed such a crisis in 40 years of business: AK Azad
Apparel Outlook Report
AK Azad, Managing Director of Ha-Meem Group and former President of the FBCCI, has expressed deep concern over the ongoing export crisis in Bangladesh’s ready-made garment (RMG) sector, triggered by the imposition of reciprocal tariffs by the United States. Speaking at a roundtable discussion titled “US Reciprocal Tariff: Which Way Is Bangladesh Going?”—organized by Prothom Alo at a hotel in Dhaka on July 20, 2025.
He remarked, “In my 40 years of business, I have not witnessed a crisis of this magnitude.”
Azad noted that major international brands, to whom Bangladeshi exporters supply garments, are closely monitoring the US-Bangladesh tariff negotiations and engaging in lobbying.
“They have told us clearly that the likelihood of a favorable outcome for Bangladesh is very slim,” he said.
Regarding the government’s response, Azad stated, “When we raised the issue with the government, we were advised to appoint a lobbyist. A message was reportedly sent to the Chief Advisor’s office, and we were told that 95% of the solution had been reached. But until now, we have seen no concrete progress.”
Citing a recent exchange with a foreign buyer, he added, “On Sunday (July 20), an international brand emailed me asking what percentage of the new duty I would absorb if tariffs are imposed from August 1. My exports to that buyer total $80 million, but my profit is only $1.37 million. If I’m expected to shoulder 35% of the tariff, how will I survive?”
He further added, “Some people seem to believe there's someone above who can fix everything with a single decision—but the reality is far more complex.”
Also participating in the discussion, Syed Nasim Manzur, President of the Leather Goods and Footwear Manufacturers and Exporters Association of Bangladesh, said, “We are confused. It remains unclear which direction the Bangladesh government intends to take regarding the US reciprocal tariff issue.”
Economists, business leaders, and exporters at the event called for strong diplomatic engagement and coordinated action between the public and private sectors to counter the impacts of the US-imposed tariffs.
