Garments exports from Bangladesh to the US saw modest growth of 5.14 percent year-on-year in the first four months of the current fiscal, falling far below historical trends due to the impact of reciprocal tariffs.
Exporters are facing a 35.5 percent duty on shipments to the US market, which includes the 20 percent reciprocal tariff imposed by the Trump administration alongside a Most Favoured Nation (MFN) tariff of 15.5 percent.
However, the 20 percent reciprocal tariff on Bangladesh gave local exporters a competitive advantage over other garment-exporting nations, which are subject to slightly higher rates.
According to data of the Export Promotion Bureau (EPB), exports to the US reached $2.59 billion in the July-October period, up from $2.46 billion during the same months last year.
The breakdown of product categories shows that knitwear posted relatively stronger performance with 10.08 percent growth, while shipments of woven items grew only 2.25 percent. Industry insiders said although the overall numbers show positive movement, the pace of growth remains significantly lower than the “normal” double-digit levels in previous years.
They attribute this slowdown primarily to tariff repercussions facing local exporters in the US market. Inamul Haq Khan, senior vice-president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told TIMES that the uncertainty is now over as the tariff for Bangladesh has been set at a lower rate than that of several competing countries.
“We expect this will help boost the inflow of work orders from US buyers in the coming months,” he said.
A month-wise analysis reveals a sharp spike in July shipments resulting from advance buying by US retailers anticipating tariff implications.
However, exports in the following three months either stagnated or declined, indicating softer demand and heightened policy uncertainty.
In July, exports jumped to $797.26 million, up from $617.77 million a year earlier, reflecting a strong 29.05 percent year-on-year increase. But the momentum weakened in the following months.
Exports in August declined to $650.54 million, compared to $670.96 million in the same month the year prior.
But September saw little change, with exports amounting to $564.10 million, almost identical to the $563.75 million a year ago.
The downtrend continued in October, when exports slipped to $575.44 million from $608.19 million in the corresponding month of 2024, marking a 5.38 percent decrease.
“The next few quarters will be crucial to see whether Bangladesh can convert this challenging tariff situation into an opportunity,” said Mohiuddin Rubel, a former BGMEA director and managing director of Bangladesh Apparel Exchange.
He further said that deeper value addition, market diversification and proactive trade diplomacy will be key to sustaining growth.
