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January-February RMG exports to US up 26.64pc
Apparel exports to the United States, the single-largest market for made-in-Bangladesh clothing, sustained double-digit growth during the first two months of 2025.
Bangladesh fetched $1.50 billion from the US market during the January-February period of 2025, marking 26.64 per cent growth from $1.18 billion in the corresponding period of 2024, according to the data by OTEXA, an affiliate of the US Department of Commerce.
The data was released on Thursday, a day after the US imposed 37 per cent tariffs on Bangladeshi goods.
Readymade garment (RMG) exports to the US, which bounced back strongly in January, saw 45.9 per cent growth and fetched $799.65 million that month, which was $547.95 million in the same month of 2024.
However, exports may face a blow due to the new tariff imposition by the US.
In terms of quantity, Bangladesh shipped 488.27 million square metres of apparel to the US market in the January-February period of 2025, marking 23.38 per cent growth from 395.74 million square metres in the corresponding period of 2024, the OTEXA data shows.
Industry experts say January and February are unusual months and attributed the export rise to the likely attempts by importers to clear shipments before the Trump administration imposed higher tariffs.
The growth in Bangladesh's RMG exports to the US in January and February of this year outpaced that of all other major suppliers, including India at 25.70 per cent, Pakistan at 23.05 per cent, Vietnam at 11.14 per cent, and China at 8.85 per cent.
Despite the global economic challenges, Bangladeshi products' competitive pricing, enhanced production capabilities, and commitment to sustainable and ethical manufacturing practices contributed to the robust rebound, exporters said.
But the competitiveness may erode in the coming months due to the US tariff hike. Bangladesh may lose competitiveness to India and Pakistan, which face lower tariffs of 26 per cent and 29 per cent, respectively, they observed.
According to the OTEXA data, Bangladesh's RMG export earnings from the US market were $7.34 billion in 2024 and $7.28 billion in 2023. In 2022, clothing exports to the US hit an all-time high of $9.73 billion.
Amid the slow growth last year, Bangladesh's apparel export share in the US market fell to 9.26 per cent in 2024, which was 9.7 per cent in 2022.
The rise in exports from countries like Indonesia, India, Pakistan, and Cambodia in 2025 indicates that US buyers are diversifying their sourcing, influenced by competitive costs and geopolitical considerations.
On the other hand, China's slower growth, which economists and exporters apprehend would slow further, indicates shifting dynamics in global sourcing patterns, while factors such as trade policies, production costs, and sustainability requirements continue to shape these trends.
When asked, Fazlul Hoque, former president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said importers may have made early shipments to have a good stock fearing possible tariff hikes so that they can immediately adjust during a crisis period.
The US market that started getting better after a long time of weaker position may face a decline in demand because of the new tariffs, which would raise the prices of garment items, he said.
This means the US consumers would purchase less, resulting in a squeezed market, Hoque noted, adding that the new tariffs may not sustain.
Exporters say Bangladesh needs to address its internal issues, including energy crisis, high cost of production, high bank interest rate, and other complexities, to sustain its competitiveness amid the possible volatile global trade war situation.
However, experts and economists think the new tariffs imposed by the US may not bring any major change in market competition as similar tariffs have been imposed on other garment-producing countries at various rates, with some of them facing higher rates like Vietnam and Cambodia.
Besides, they apprehend a possible global trade war that would result in economic recession and affect almost all exporting countries.
According to some exporters, while Vietnam is doing ever so well in the US market and the new tariffs may affect its growth, India will be a new concern and challenge for Bangladesh as the next-door neighbour is shipping higher volumes of apparel to America, offering lower prices by banking on its own raw materials.
Now India would be in an advantageous position with a low 26 per cent tariff, they said.
Talking to The Financial Express, Rubana Huq, former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said Bangladesh's exports to the US would fall by at least 25 per cent in the near future.
"Eventually, we will lose to India and Pakistan in general. Also, we will lose to Jordan and Egypt in the higher value-added knit categories," she noted.
Turkey will also be a competitive sourcing hub considering its low tariff as it only has a 10 per cent reciprocal tariff, she added.
According to OTEXA, India received $955.50 million by shipping 263.87 million square metres of apparel to the US in the first two months of 2025. In terms of quantity, the shipments were 31.91 per cent higher compared to that in the same months of 2024.
Vietnam's apparel exports to the US in the period under review fetched $2.62 billion, recording 11.14 per cent growth. It recorded 7.25 per cent growth in terms of quantity as the US imported 753.44 million square metres of garment from the country.
Meanwhile, China recorded 8.85 per cent growth and fetched $2.77 billion during the period. It shipped 1.52 billion square metres of apparel to the US, marking 5.78 per cent growth.
The overall US apparel imports during the first two months of 2025 marked 11.21 per cent year-on-year growth to $13.55 billion.
