Garment exports from Bangladesh to the United States (US) fell 4.6 per cent year-on-year in November, underscoring persistent volatility in the country’s largest apparel export market amid tariff pressures and subdued demand.
Data compiled by the Export Promotion Bureau shows that Bangladesh exported about $636 million worth of garments to the US that month.
But despite the decline, the country’s overall performance remained positive.
Cumulative garment exports to the US reached $3.22 billion by the end of November, indicating 3.06 percent growth compared to the corresponding period of FY25.
Industry insiders attribute the decrease to weakened US demand and the impact of reciprocal tariff measures, which have reshaped sourcing practices in an increasingly competitive global market.
“The main reason is the reciprocal tariff on our products, which led to market contraction and cautious ordering by buyers,” said Md Shehab Udduza Chowdhury, vice-president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
“Some retailers are holding back on making larger orders to see how demand stabilises in the coming months,” he added.
Exporters also pointed to persistently weak US consumer demand, driven by inflationary pressures and high interest rates.
With consumer spending yet to recover fully, apparel sales in the US have slowed, prompting major retailers to keep inventories lean and delay fresh orders.
As such, suppliers like Bangladesh are getting less work orders, they added.
At the same time, intensifying competition is adding further pressure. Several US buyers are shifting orders to Vietnam, Mexico and Central American countries, attracted by shorter lead times, more favourable tariff structures and near-shoring advantages.
Md Mohiuddin Rubel, former director of the BGMEA, said the impact has been most pronounced in price-sensitive, low-value basic apparel segments, which still account for a significant share of Bangladesh’s exports.
“These products are more vulnerable to cost pressures and tariff increases, making it harder for suppliers to remain competitive,” he said.
Despite the challenges, exporters remain cautiously optimistic. Month-on-month export data indicates a gradual rise in shipments, suggesting the return of buyer confidence.
If tariff-related pressures ease and US demand stabilises, garment shipments to the western market could regain momentum by the first quarter of 2026, exporters said.
They added that market diversification, upgrading to higher value products and reducing lead times are crucial for the sector to navigate current headwinds and strengthen Bangladesh’s position in the US market.
