Shipments to USA jump on both counts

Bangladesh's apparel exports to the United States, its single-largest market, recorded a double-digit growth both in value and volume during the first quarter of 2025.

The country's readymade-garment exports fetched US$2.22 billion from the US market during the January-March period of 2025, marking 26.66-percent growth from US$1.75 billion in the corresponding period of 2024, according to the data released on Tuesday by OTEXA, an affiliate of the US Department of Commerce.

In terms of quantity, shipments came to 733.98 million square metres of apparel in a 25.24-percent growth over 586.04 million square metres in the corresponding period of 2024.

Industry experts attributed export rise to the improved US market and the likely attempts by importers to clear shipments before the Trump administration imposed higher tariffs.

The growth in Bangladesh's RMG exports to the US in January-March this year outpaced that of all other major suppliers, including India at 24.04 per cent, Indonesia at 20 per cent, Pakistan 17.51 per cent, Vietnam 13.98 per cent, and China at 4.11 per cent.

Vietnam, however, surpassed China and earned US$3.87 billion during the first quarter of 2025. The US imported apparel worth of US$3.59 billion from China during the period, according to OTEXA data.

Despite the global economic challenges, Bangladeshi products' competitive pricing, enhanced production capabilities, and commitment to sustainable and ethical manufacturing practices contributed to such robust performance, exporters said.

Talking to the FE, a number of exporters opined that Bangladesh could be one of the major beneficiaries of the trade-and tariff wars between the US and China provided local issues were addressed and required strategic-policy support given.

Exporters are divided in opinions about eroding competitiveness in the coming months due to the US tariff hike. Some opine that Bangladesh may lose competitiveness to India and Pakistan, which face lower tariffs of 26 per cent and 29 per cent, respectively, than Bangladesh's 37 per cent, while others believe Bangladesh might not be affected significantly.

According to the OTEXA data, Bangladesh's RMG-export earnings from the US market were $7.34 billion in 2024 and $7.28 billion in 2023. In 2022, clothing exports to the US hit an all-time high of $9.73 billion.

Amid the slow growth last year, Bangladesh's apparel-export share in the US market fell to 9.26 per cent in 2024, which was 9.7 per cent in 2022.

The rise in exports from countries like Indonesia, India, Pakistan, and Cambodia in 2025 indicates US buyers are diversifying their sourcing, influenced by competitive costs and geopolitical considerations.

On the other hand, China's slower growth, which economists and exporters apprehend would slow further, indicates shifting dynamics in global sourcing patterns, while factors such as trade policies, production costs, and sustainability requirements continue to shape these trends.

Asked about the trade trends, Mahmud Hasan Khan, managing director of Rising Group, said the shipments were made before the imposition of the new US tariffs and demands from US were increasing on the back of its improved economy.

"Besides, there has been an anti-China move that encourages US buyers to source from alternative destinations, including Bangladesh, Indonesia, Pakistan, Vietnam and Cambodia," he says.

After the imposition of the jacked-up US tariff regime, the country that could offer better option would perform better, he predicts, adding that importers may have made early shipments to have a good stock of basic items fearing possible tariff hikes so that they can immediately adjust during a crisis period.

Mr Khan, also a former leader of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), thinks the main concern is the 'uncertainty' as none is sure what is going to happen.

Talking to the FE, Abdullah Hil Rakib, managing director of Team Group, said the flow of work orders from the US is good and local manufacturers are also focusing more on manmade fibre on the cusp of transition in clothing.

"Bangladesh has the opportunity to take back the opportunity provided with required policy supports like tax rebates and others," he said, adding that government should redesign the incentives and provide for MMF-garment making to encourage both local and foreign investments.

Exporters say Bangladesh needs to address its internal issues, including energy crisis, high cost of production, high bank interest rates, and other complexities, to sustain its competitiveness amid the possible volatile global trade-war situation.

However, they think the new tariffs imposed by the US may not bring any major change in market competition as similar flat rate of additional 10-percent tariffs, except China, has been imposed for 90 days.

Besides, they apprehend a possible global trade war that would result in economic recession and affect almost all exporting countries.

According to some exporters, while Vietnam is doing ever so well on the US market and the new tariffs may affect its growth, India will be a new concern and challenge for Bangladesh as the next-door neighbour is shipping higher volumes of apparel to America, offering lower prices by banking on its own raw materials.

Mr Rakib, however, notes that Vietnam is facing labour shortage while India and Cambodia don't have the capacity to compete with Bangladesh.

According to OTEXA, India received $1.50 billion by shipping 417.88 million square metres of apparel to the US in the first three months of 2025. In terms of quantity, the shipments were 27.17-percent higher compared to that in the same months of 2024.

The overall US apparel imports during the first three months of 2025 marked 10.96-percent year-on-year growth to $20.04 billion.

Munni_fe@yahoo.com