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Bangladesh’s ready-made garment (RMG) exports to its largest market, the United States, grew by 11.75 per cent in 2025, defying a broader decline in US apparel imports amid tariff tensions.

According to data from the Office of Textiles and Apparel (OTEXA), Bangladesh earned $8.20 billion from apparel shipments to the US in January–December 2025, up from $7.34 billion a year earlier.

In volume terms, exports rose 12.36 per cent to 2.66 billion square metres equivalent (SME), compared with 2.36 billion SME in 2024.

The growth came even as overall US apparel imports fell 1.70 per cent to $77.88 billion in 2025 from $79.23 billion the previous year. Import volume also declined 3.62 per cent to 24.81 billion SME.

Early boost, later slowdown

Exporters said much of the growth stemmed from advance shipments and additional work orders placed ahead of anticipated tariff hikes.

Shovon Islam, managing director of Sparrow Group, said shipments surged in the early months of 2025 as buyers rushed orders before new tariffs took effect.

But after reciprocal tariffs were imposed — initially at 37 per cent and later reduced to 19 per cent for Bangladesh — US buyers scaled back orders following weaker consumer demand.

“They were converting their purchasing budget to match the tariffs as they did not have an additional budget,” he said, noting that fewer work orders were placed after July.

Monthly data show exports declined in May, October and November before returning to positive territory in December, when shipments rose 3.33 per cent in value and 1.39 per cent in volume year-on-year.

Islam expressed hope that a recent US court verdict and the prospect of a uniform 10–15 per cent tariff for all apparel-exporting countries would stabilise buyer sentiment. He also said a stable political environment after national elections could reduce risk perceptions.

Shifting global landscape

Vietnam emerged as the top apparel exporter to the US in 2025, surpassing China. It posted 11.84 per cent growth to $16.74 billion.

US imports from China plunged 35.61 per cent to $10.64 billion from $16.52 billion in 2024.

India recorded 5.48 per cent growth to $4.94 billion, while Cambodia saw the highest increase — 26.95 per cent — reaching $4.82 billion. Indonesia and Pakistan posted growth of 9.67 per cent and 10.76 per cent, earning $4.66 billion and $2.39 billion respectively.

Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said Bangladesh benefited as reciprocal tariffs on China and India were higher, prompting some orders to shift.

However, he warned of weak or flat growth in February due to election-related uncertainty, with some buyers delaying orders.

He also noted that China and India have been aggressively offering lower prices in the European Union market to offset US tariff losses, a strategy he believes is unsustainable.

“How long can one do business by incurring losses?” he said.

Policy support crucial

AK Azad, managing director of Ha-Meem Group, said Bangladesh remains competitive compared to regional peers but cautioned that sustaining double-digit growth will require policy support.

Manufacturers need uninterrupted gas and electricity supply, lower bank interest rates, improved efficiency at Chittagong port and a stable law-and-order situation, industry leaders said.

“Otherwise, it will be difficult to sustain the double-digit growth,” Azad said, adding that competitiveness could also be challenged after Bangladesh graduates from least developed country (LDC) status in 2026.