Bangladesh Garment Exports Soar as US-China Tariff War Rages

In the midst of the ongoing US-China tariff war, Bangladesh's garment industry is finding itself in a potentially advantageous position as of August 8th, 2025. Over the last decade, Bangladesh's apparel exports to the US have grown by an impressive 35.94%, including a 40.45% surge in the post-COVID period between 2020 and 2024.

Much of this success can be attributed to Bangladesh's ability to capitalize on opportunities as Chinese firms redirected their strategies in response to the elevated tariffs. With Chinese products likely to remain more heavily taxed, the playing field has been leveled, allowing Bangladeshi manufacturers to gain a competitive edge. Additionally, India's increased tariffs have further tilted the scales in Bangladesh's favor across various product categories.

However, the global ripple effects of tariff increases cannot be ignored. Elevated retail prices and strained supply chains have resulted in declining orders and downward pressure on supplier prices, potentially squeezing margins for Bangladeshi manufacturers. To maintain their momentum in the US market, manufacturers must resist the temptation of premature price cuts, which could undermine fair competition. Instead, they must remain vigilant in tracking market trends, anticipating disruptions, and investing in innovation to stay agile and competitive.

Looking beyond the US, a broader global outlook is critical for Bangladesh's long-term stability and growth. While the US accounts for roughly 20% of the country's garment exports and Europe around 50%, diversifying into emerging markets such as Japan, Australia, the Middle East, and Latin America is essential. With the global apparel market valued at approximately $550 billion, tapping into these regions is no longer optional but a strategic necessity.