Garment exports from Bangladesh to the United States have shown a positive trend, with a reported increase in income as fulfillment of orders from July and August continues. This growth is 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 US $ 580 million worth of garments to the US, an increase from US $ 470 million in the same month the previous year. Overall, the 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 competitive market.
The US continues to be 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 remains 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 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 circumstances. 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 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.
