Rising US tariffs offer hope for Bangladesh’s RMG exporters
Staff Report :
Garment exports from Bangladesh to the United States have shown a positive trend, with reported increases in income as orders from July and August continue to be fulfilled.
This growth can be partially attributed to the ongoing trade tensions between the US and China, which have created favourable conditions for Bangladeshi exporters. However, significant concerns loom over potential obstacles that could hinder future export growth.
In December 2024, Bangladesh exported garments worth US $580 million to the US, up from US $470 million in the same month the previous year.
Overall, total garment exports to the US reached US $7.34 billion in 2024, slightly surpassing the US $7.29 billion recorded in 2023. While this represents a modest growth of 0.75 per cent, it highlights the resilience of Bangladesh’s garment industry in a highly competitive market.
The US remains the largest market for Bangladeshi ready-made garments, with total US garment imports rising to US $79.26 billion in 2024, up from US $77.93 billion the previous year.
However, competition is fierce, with Vietnam leading garment exports to the US, achieving a 5.5 per cent growth and exporting US $14.98 billion in 2024. India and China follow closely behind, with respective exports of US $4.69 billion and US $16.51 billion.
The imposition of an additional 10 per cent tariff on Chinese garment exports to the US has opened up significant opportunities for Bangladeshi exporters. Yet, the current landscape poses challenges, including worker dissatisfaction, rising interest rates, and policies from the National Board of Revenue (NBR) that are creating hurdles for the industry.
Industry experts emphasise the importance of leveraging this opportunity, urging the government to provide timely policy support to ensure that exporters can fully capitalise on the favourable conditions. The ongoing energy crisis, characterised by shortages of gas and electricity, adds another layer of complexity, threatening the ability of manufacturers to meet growing demand.
As Bangladesh looks to strengthen its position in the US market, the need for strategic support and the resolution of existing challenges has never been more critical. Exporters are calling for swift action to ensure that the country can effectively respond to this unique moment in the global garment trade.