Bangladesh’s leather and footwear industry is experiencing renewed growth in the US market after securing lower import tariffs compared to major competitors. While India and China face steep duties of 50% and 30% respectively, Bangladesh negotiated a more favourable 20% tariff, giving its exporters a clear edge.
Industry players report a surge in US-bound orders, with companies like Leatherex Footwear, BLING Leather Products, and Akij Footwear already benefiting from increased demand. Export Promotion Bureau (EPB) data shows the sector earned US $1.7 billion in FY 2024-25, up 14.45% year-on-year, with US shipments rising 42% to US $397.5 million—roughly a quarter of total exports.
However, stakeholders caution that this momentum could be undermined by persistent challenges such as unstable electricity, gas shortages, inefficient customs, and weak infrastructure. Leaders stress that without urgent improvements in the investment climate and utility services, Bangladesh risks losing its competitive edge despite the tariff advantage.
