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Apparel exports to US rise despite tariff concerns

Apparel exports to US rise despite tariff concerns
Bangladeshi RMG workers at a factory. File Photo: TIMES
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Apparel exports from Bangladesh to the US surged to $6.42 billion in the January-September period, indicating growth of 18.63 per cent year-on-year, according to the US Office of Textiles and Apparel (OTEXA).

In terms of volume, data shows that the country recorded a robust rise of 19.07 per cent in the number of apparels shipped to the western market,

However, industry experts cautioned that the full impact of the recently imposed reciprocal tariff is yet to be reflected in OTEXA calculations as the dataset currently covers imports only up to September, while the tariff came into effect on 7 August.

“If we look at data from the Export Promotion Bureau [EPB], the impact of the tariff is already visible through a downward trend, which is likely to worsen in the near future,” said Mohiuddin Rubel, additional managing director of Denim Expert Ltd.

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Among other major sourcing countries of the US, Vietnam recorded 13.66 percent growth in exports, while India posted a 12.80 per cent increase.

Pakistan and Indonesia also saw notable gains of 14.04 per cent and 13.47 per cent, respectively. However, Cambodia stood out with a sharp rise of 28.51 per cent.

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In contrast, China experienced a steep decline, with its apparel exports to the US falling by 29.81 per cent during the nine-month period.

A similar trend was observed in terms of the number of pieces exported.

Vietnam saw a 14.64 per cent increase, India 11.27 per cent, Pakistan 22.07 per cent, Indonesia 16.01 per cent, and Cambodia 39.69 per cent rise.

However, China recorded a sharp drop of 22.14 per cent.

Average unit prices per piece showed mixed movements across sourcing countries.

Bangladesh registered a marginal decline of 0.37 per cent, while Vietnam’s unit prices fell 0.85 percent. China saw a significant drop of 9.85 per cent, and Cambodia and Pakistan recorded declines of 8.00 per cent and 6.58 per cent, respectively.

Indonesia’s unit price decreased by 2.19 per cent, whereas India was the only major exporter to post an increase of 1.37 per cent.

Industry insiders say Bangladesh’s strong performance underscores its continued competitiveness in the US market, but warn that evolving trade policies and tariff measures could pose fresh challenges for apparel exporters in the coming months.

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