Trump Tariff Turmoil Alters Trade Equations, Robust Growth in RMG Exports to US Brightens Outlook

Bangladesh’s Apparel Exports to US Surge 21.68% in Early 2025 Amid Trump Tariff Turmoil

Bangladesh’s apparel shipments to the United States grew by a robust 21.68 percent in the first seven months of 2025, with exporters anticipating brighter prospects as shifting tariff policies reshape global trade dynamics.

Official US data show that exports to Bangladesh’s largest single market rose in both value and volume despite looming concerns over impending tariff hikes.

According to figures released Tuesday by OTEXA, a unit of the US Department of Commerce, Bangladesh earned US$4.98 billion from ready-made garment (RMG) exports to the US between January and July, up from US$4.09 billion during the same period in 2024.

This growth rate, well above the global average of 4.98 percent, placed Bangladesh ahead of several competitors, though Vietnam retained the top spot by overtaking China in the changing trade landscape.

During the period, Bangladesh shipped 1.59 billion square meters of apparel to the US—20.34 percent more than the 1.32 billion square meters recorded a year earlier.

Overall US apparel imports between January and July stood at US$45.79 billion, up from US$43.62 billion a year ago, reflecting stronger consumer demand and supply chain adjustments amid tariff shifts affecting China.

Vietnam led the US apparel import market with US$9.45 billion worth of shipments in the first seven months of 2025, marking 17 percent growth. China slipped to second place with US$6.92 billion, registering a sharp 21.07 percent year-on-year decline under renewed tariff pressure and geopolitical headwinds.

Commenting on the development, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Mahmud Hasan Khan described the growth as “good” and expressed optimism that the upward trend would continue from October.

“Growth in August and September may slow slightly as some buyers delayed orders due to tariff uncertainty,” he noted, adding that many exporters had rushed shipments ahead of the July 31 deadline to avoid higher duties.

On July 7, President Donald Trump announced a flat 35-percent tariff on all Bangladeshi exports, later reduced to 20 percent on August 1 after negotiations. However, shipments reaching inland container depots before July 31 were allowed at the old tariff rate, prompting a scramble among exporters to dispatch goods early.

The BGMEA chief also pointed out that while Chinese orders are shifting away from the US, Beijing has been aggressively expanding in the EU market by offering significantly lower prices to buyers to compensate for losses in America.

Among other regional players, India’s apparel exports to the US rose 16.10 percent to US$3.30 billion during January–July, while Indonesia posted 16.82 percent growth to US$2.66 billion. Cambodia registered the highest increase—24.45 percent—to reach US$2.37 billion, and Pakistan earned US$1.34 billion with an 11.82 percent rise.