Bangladesh’s garment exports industry, a cornerstone of its economy, stands to gain from shifting global trade dynamics triggered by new US tariffs on Chinese goods. The Trump administration’s imposition of a 145% tariff on Chinese exports, effective August 1, 2025, has prompted American retailers to seek alternative suppliers. Bangladesh, the world’s second-largest apparel exporter, is well-positioned to fill this gap due to its competitive pricing and large-scale production capacity.
Details of Garment Exports
In 2024, Bangladesh exported $8.4 billion in garments to the US, accounting for 9.3% of the $105 billion American apparel market. Despite facing a 35% US tariff, down from an initial 37% proposal, the country’s low-cost production—bolstered by 4 million workers, mostly women—remains attractive. Industry leaders note that US buyers are already shifting orders from China, with Bangladesh’s exports to the US rising 29% year-on-year to $2.98 billion from January to April 2025.
However, challenges persist. The US tariff, combined with domestic issues like energy shortages and port congestion, could strain competitiveness. Bangladesh faces competition from Vietnam, which secured a 20% tariff rate, and India, with a 27% tariff. To sustain growth, exporters emphasize the need for improved infrastructure, reliable power supply, and streamlined logistics. The government is actively negotiating with the US to lower tariffs further, with talks ongoing as of July 2025.
What’s Next
The garment sector, contributing 84% of Bangladesh’s export earnings, supports economic resilience. By leveraging its established market presence and addressing internal bottlenecks, Bangladesh can seize this trade shift to strengthen its global apparel dominance.
Published in SouthAsianDesk, August 1st, 2025
Follow SouthAsianDesk on X, Instagram, and Facebook for insights on business and current affairs from across South Asia.
