Bangladesh retains second spot in RMG exports to US despite global decline

Bangladesh has retained the second spot among countries exporting garments to the US even as overall US imports fell owing to President Donald Trump’s tariff hikes.

Exports from all source countries fell by 8.65% in the first seven months of the year as Trump’s tariff pressures hike foreign garment prices, pushing Americans to buy local and resold clothes.

Bangladesh stays ahead of China and trails Vietnam even as exports in terms of value fell by 6.5% from last year to $4.66 billion, reports the Office of Textiles and Apparel (OTEXA) – a concern of the US Department of Commerce.

During January-July, exports from China and India fell at the steepest rates by 34.2% and 25.77%, respectively.

US imports from the chart topper, Vietnam, also fell by 1.03%. However, imports have risen from Indonesia and Cambodia by over 2% and 10% respectively, thanks to US companies seeking alternative routes away from India and China.

Mohiuddin Rubel, a former director at the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh can also gain from US diversification away from China.

But first, Bangladeshi garment companies will have to enhance competitiveness, diversify product lines and learn to adapt to changing US consumer demands, Rubel noted.