Textile and Apparel Industries

Navigating Tariff-Driven Sourcing Shifts: How Bangladeshi Apparel Suppliers Respond to U.S. Trade Policy Through Dynamic Capabilities  

---

Abstract

This study explores how Bangladeshi apparel suppliers respond to recent U.S. tariff changes that are reshaping global sourcing patterns. As tariffs push American buyers to shift orders away from China and Mexico, Bangladeshi suppliers face both new opportunities and rising competitive pressures. Guided by dynamic capabilities theory, this research explores how suppliers sense these market signals, seize emerging buyer interest, and transform their operations to stay competitive. Using a qualitative exploratory design, we conducted semi-structured interviews with 11 supplier professionals who work directly with U.S. buyers. The findings show that suppliers closely monitor policy changes, strengthen buyer relationships through flexible communication and marketing practices, and reorganize production and technology to meet shifting demands. These results highlight suppliers’ strategic responses to trade-policy uncertainty and extend the application of dynamic capabilities in global sourcing contexts. The study offers insights for sourcing professionals and policymakers seeking to support stable buyer-supplier relationships.

 

 

Keywords: Dynamic capabilities, Global sourcing, Trade policy, Tariff, Bangladesh

How to Cite:

Hasan, M. & Bonney, S., (2025) “Navigating Tariff-Driven Sourcing Shifts: How Bangladeshi Apparel Suppliers Respond to U.S. Trade Policy Through Dynamic Capabilities  ”, International Textile and Apparel Association Annual Conference Proceedings 82(1). doi: https://doi.org/10.31274/itaa.21584