Against the odds, Bangladesh gains ground in US apparel market

Garment shipments from Bangladesh have maintained steady growth among the top 10 exporters to the USA over the past five years, helping the country secure its position as the third-largest apparel exporter to the US market.

The United States is Bangladesh's single largest export destination. Between 2020 and 2024, exports grew by 40.45 percent, according to data from the US Office of Textiles and Apparel (OTEXA).

In 2020, Bangladesh exported garments worth $5.22 billion to the US. By 2024, this figure rose to $7.34 billion, showing how local exporters remained resilient despite multiple global and domestic crises.

These challenges included the Covid-19 pandemic, global inflation, the Russia-Ukraine war, rising fuel prices, the Israel-Palestine conflict, factory shutdowns, and labour unrest. Despite these, Bangladesh's apparel sector held firm in one of its key markets.

The US's overall apparel imports rose by 23.72 percent over the same period, according to OTEXA data.

Although some countries recorded higher growth rates, Bangladesh's large export volume and consistent performance helped it retain a leading position. American consumers, retailers, and brands responded positively to Bangladesh's improved product quality and workplace safety.

The south Asian country's progress in compliance and innovation also helped build buyer confidence, contributing to stable orders and growing shipments.

Meanwhile, China has been steadily losing its share in the US market since 2018. That year, then-President Donald Trump imposed higher tariffs on Chinese imports, including garments. The duties increased further during his second term.

In 2022, China exported garments worth $21.75 billion to the US. This amount dropped to $16.50 billion by 2024, making China the biggest loser in terms of value, according to OTEXA.

Bangladesh, in contrast, gained from the shift in sourcing, reflecting growing interest from US buyers looking beyond China.

Vietnam benefited the most from this shift. Its garment exports to the US rose from $12.56 billion in 2020 to $14.98 billion in 2024, and the upward trend continues.

India also saw significant improvement, with exports increasing to $4.69 billion in 2024 from $3.01 billion in 2020. Indonesia followed, with exports rising from $3.51 billion to $4.25 billion over the same period.

Pakistan exported $2.16 billion in 2024, up from $1.40 billion in 2020, also gaining from changes in global sourcing strategies.

As part of ongoing trade negotiations, Bangladesh has been urging the Trump administration to reconsider its plan to impose a 37 percent reciprocal tariff on Bangladeshi exports.

Business leaders have suggested that the rate should be capped at 10 percent, which they see as a fair baseline introduced earlier this year.

The government submitted formal comments on the draft proposal ahead of a high-level meeting scheduled for July 3 in Washington. Commerce Adviser Sk Bashir Uddin is expected to attend, joined by National Security Adviser Khalilur Rahman.

Rahman is already in Washington for talks, which come just days before a 90-day pause on the new tariffs expires on July 8.

On Thursday, he met US Assistant Trade Representative Brendan Lynch to press Bangladesh's case. Officials said the country wants to maintain the current 16 percent tariff along with the 10 percent baseline, totalling 26 percent.

This is being offered as an alternative to the proposed 37 percent duty. Dhaka is also expected to seek a three-month extension of the tariff pause.

The BGMEA made a similar proposal in a recent meeting with US embassy officials in Dhaka. A business representative said if tariffs must be imposed, Bangladesh prefers a maximum of 10 percent instead of 37 percent.

Currently, Bangladeshi exporters face a 26 percent tariff after the US imposed an additional 10 percent duty on April 8.