RMG exports to US surge 26.64pc in Jan-Feb

Bangladesh, the world’s second-largest exporter of readymade garments (RMG), saw its exports to the United States grow by 26.64% in January–February 2025 compared to the same period in 2024.

Industry insiders credit the rise to enhanced production capacity, improved compliance, firm commitment from manufacturers, and the ongoing trade tensions between the US and China.

Exporters are optimistic that this growth will continue in the coming months, especially as the United States — Bangladesh’s single-largest export destination for garments — imposed a steep 104% levy on all Chinese imports under President Donald Trump’s administration.

According to data from OTEXA, an affiliate of the US Department of Commerce, Bangladesh earned US$1.50 billion from apparel exports to the US during the first two months of 2025, up from $1.18 billion during the same period last year.

Shovon Islam, managing director of Sparrow Group, said, “Our exports to the US market have increased, although the unit price has declined. The increase is largely due to our enhanced capacity and the additional tariffs on Chinese goods. However, the drop in unit price reflects weaker bargaining power and ongoing political and labour unrest.”

Shovon explained that a flat 10% tariff will now be applied alongside the existing 16% tariff (with some fluctuation), but the additional 37% duty has been suspended. “The US may revoke tariffs depending on domestic pressures,” he added.

US buyers now demand 5% discount

Islam further mentioned that following the announcement of the 37% tariff, US buyers started demanding greater discounts.

“Even though the 37% tariff has been postponed for three months, buyers are now asking for a 5% discount on top of the existing 10% tariff applicable to all countries,” he said.

Islam added, “We appreciate the US government's decision to defer the tariff, or else we would be in serious trouble. However, we still need to negotiate with buyers to ease the pressure.”

He attributed the tariff suspension to internal protests in the US, which significantly impacted its retail market.

Meanwhile, Mohiuddin Rubel, former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said that the US imported apparel worth $13.55 billion globally during January–February 2025, an 11.20% increase from $12.18 billion in the same period in 2024.

He added that the growth rates for apparel imports from other key countries during this period were: China 8.85%, India 25.70%, Pakistan 23.05%, and Vietnam 11.14%.

In terms of volume, the US imported 23.38% more pieces from Bangladesh, 7.25% from Vietnam, 5.78% from China, 31.90% from India, 24.68% from Pakistan, and 9.79% globally compared to January–February 2024.

Rubel also highlighted fluctuations in unit prices per piece: Bangladesh saw a 2.64% change, Vietnam 3.62%, China 2.91%, while India and Pakistan experienced price drops of 4.71% and 1.30% respectively. Globally, there was a 1.28% rise.

“We anticipated this growth,” Rubel said. “We believe our exports will continue to rise. Not only are our export volumes increasing, but so are our product prices.”

He also stressed that Bangladesh could perform even better in the US market if the government successfully negotiates on tariff issues.

“Our longstanding global reputation in the RMG sector, compliance, skilled workforce, entrepreneurial spirit, buyer confidence, and strong commitment will keep us competitive,” he concluded.