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Bangladesh’s garment exporters are preparing for a stronger year ahead, even as Christmas-season shipments to the US slowed due to steep reciprocal tariffs and early inventory stocking by American retailers.

This year’s export performance was shaped by shifting tariff policies and global supply chain instability. Conditions began to settle after the US finalised country-specific tariff rates in August, imposing a 20% reciprocal tariff on Bangladeshi goods. Combined with the existing 16.15% MFN duty, Bangladeshi apparel now faces a total tariff of 36.15% in the US market.

Earlier in April, the US had floated a plan for reciprocal tariffs and introduced a temporary 10% baseline duty. To benefit from the lower rate during negotiations, US retailers purchased in bulk between April and August — a move that caused Bangladesh’s exports to slow in the following months.

Exports to the US dropped across August, September, October and November as stores remained well stocked ahead of Christmas.

Exporters, however, expect the tide to turn soon. One industry leader said imports should climb again once retailers begin restocking after December sales, with a gradual export rebound likely from March. He noted that US clothing sales also fell short of expectations as prices rose due to the higher tariff burden.

Pressure has intensified in the EU as well, with major producers — including Bangladesh, India, China, Pakistan and Vietnam — pushing harder into the bloc amid the higher US tariff wall. Export prices in Europe have been under strain as competition grows.

Market slowly stabilising

Another exporter said work orders now stretch to mid-2026, although the year only regained stability after the tariff adjustments. A textile and apparel exporter echoed this, saying retailers and brands delayed orders during the tariff uncertainty but are now returning as the market revives.

He added that global buyers are watching Bangladesh’s political environment closely and urged more government–business engagement to address industry challenges.

Another manufacturer described the year as “not that healthy,” citing lower work orders, but said confidence is returning as the US settles its tariff framework with exporting nations.

A former BGMEA president noted that Christmas shipments remained weak for several consecutive months but expects US demand — and orders for Bangladesh — to rise once the holiday sales cycle concludes.

According to BGMEA analysis of Export Promotion Bureau data, Bangladesh’s apparel exports to the US grew 5.14% to $2.58 billion in July–October. Exports to the EU in the same period edged up 0.46% to $6.25 billion.