Written by The Banking Post
Bangladesh’s apparel sector is poised to gain a competitive edge in the US market following Washington’s imposition of steep tariffs on two of its biggest rivals, India and China.
The US has recently levied an additional 25 percent tariff on Indian goods and 30 percent on Chinese products, while Bangladeshi apparel continues to face a lower 20 percent rate, according to a UNB report. This shift in trade dynamics is prompting more global buyers to consider Bangladesh as a sourcing destination.
Industry leaders say the country’s ready-made garment (RMG) sector has the capacity and expertise to meet the expected surge in orders. BGMEA President Mahmud Hasan Khan assured that Bangladesh could handle diverted orders from India and China without difficulty, while BKMEA President Muhammad Hatem said the industry is fully prepared to ramp up production in response to increased demand.
Lower production costs and comparatively favorable tariffs make Bangladesh an attractive alternative for US retailers. In a bid to strengthen bilateral trade, the Bangladesh Textile Mills Association (BTMA) announced plans to boost cotton imports from the US to $1 billion. The move follows recent trade talks that reduced tariffs on Bangladeshi goods from 35 percent to 20 percent.
Market analysts view the development as a significant commercial blow to India, whose apparel exports to the US grew by over 55 percent between 2020 and 2024. The new tariff regime—effectively 50 percent for India when combined with retaliatory measures linked to its purchase of Russian oil—is expected to erode its price competitiveness.
Analysts warn, however, that the opportunity for Bangladesh may be temporary. They urge swift action, including a clear export growth roadmap and stronger public-private partnerships, to secure long-term gains.
“This new tariff policy opens up immense possibilities for Bangladesh,” said former BGMEA director Mohiuddin Rubel. “We are now better positioned than ever to expand our market share in the US.”
Trade tensions between the US and India—rooted in disputes over genetically modified crops, agricultural policy, and broader trade disagreements—are adding to the pressure on New Delhi’s exporters. Experts stress that Bangladesh must maintain quality standards, ensure timely delivery, and uphold political stability to fully capitalize on its current advantage.
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