Reza Mahmud :
Bangladesh’s ready-made garment (RMG) exporters eye huge gains on exporting apparels to the USA as President Trump imposed 50pc hiked tariff on Indian exporters.
Bangladesh’s RMG exporters see it as a major opportunity to expand exports of T-shirts, denim items and other apparel to the US market.
They also see potential to attract fresh investment from India and China amid the shifting trade landscape created by the US additional tariff issue.
To leverage this opening, industry leaders are urging immediate action to resolve the ongoing gas crisis in the industrial sector including gas supply.
They also stressed the importance of political stability, efficient port operations, a conducive investment environment, and comprehensive reforms in the banking sector.
The US government has slapped an additional 25pc reciprocal duty on Indian imports due to India’s continued fuel trade with Russia, bringing the total tariff on Indian goods to 50pc.
At the same time, tariffs on Chinese products have been raised by 54pc. These additional tariffs will be effective after 21 days from August 7, 2025.
The Export Promotion Bureau of Bangladesh has published the RMG export figures for July of FY 2025-26 recently.
As per data, Bangladesh’s total exports reached $3.96 billion, reflecting a 24.67pc year-on-year growth in July alone.
Knitwear exports rose to $2.18 billion, marking a 26.01pc increase.
Woven garments accounted for $1.78 billion, registering a 23.08pc growth.
Besides, data showed, India exported apparel worth: $4.70 billion in 2024, $4.47 billion in 2023, $5.69 billion in 2022, $4.20 billion in 2021 and $3.02 billion in 2020.
This reflects a cumulative growth of 55.34pc from 2020 to 2024 in exports to the US.
Meanwhile, the latest US imposing reciprocal tariff will create drastic opportunity for Bangladesh apparel industries as the investors who have industries in India might to shift their investment to Bangladesh as it is the nearest neighboring country.
When contacted, Mohiuddin Rubel, a former director of BGMEA, managing director of Bangladesh Apparel Exchange, and additional managing director of Denim Expert Ltd.
told The New Nation on Thursday, “The newly imposed 50pc US tariff on Indian apparel poses a serious threat to India’s market share. At the same time, it opens new doors for other exporting nations, including Bangladesh, Pakistan, Vietnam, Cambodia, and Indonesia.”
The business leader said, the government has to keep eye on solving the other crisis like gas supply shortage, law and order, other infrastructural development to enhance production and export.
He said Bangladesh’s RMG exports to the US have grown by 34.94pc over the past decade and 40.45pc since the onset of the COVID-19 pandemic.
Experts said, while this growth is promising, the risk of rising tariffs in destination markets may drive up retail prices and disrupt supply chains-potentially squeezing profit margins for Bangladeshi manufacturers.
To sustain and accelerate export growth, the industry must prioritize innovation, explore new and emerging markets, and transition from basic to higher-end apparel to attract premium buyers.
Enhancing competitiveness will be critical to ensuring Bangladesh’s continued success in the global apparel industry and securing long-term economic resilience.
Currently, China tops the list of apparel exporters to the US and global markets, followed by Bangladesh, Vietnam, and India.
While both Bangladesh and Vietnam get a 20pc reciprocal tariff on exports to the US, their products are now far more cost-effective than those from China or India.
Buyers could save up to 30pc by sourcing the same garments from Bangladesh – even if all other cost factors remain constant.
Other countries like Pakistan, Indonesia, and Turkey also benefit from similar US tariff rates.
However, according to exporters, these nations lack the production capacity to rapidly scale up exports.
This leaves Bangladesh and Vietnam as the most viable alternatives to meet the shortfall.
Mahmud Hasan Khan Babu, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said the US tariffs on Indian and Chinese goods could bring substantial export orders and foreign investment to Bangladesh – provided the current challenges are addressed.
Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), echoed the same.
He said that the higher US tariffs on Indian and Chinese apparel would reduce their presence in the American market, creating a supply gap that only Bangladesh and Vietnam can fill.
