Ifaz Ehtamad; DHAKA – Bangladesh has secured the position of the second-largest garment exporter to the United States, surpassing China in the first two months of the year. While China’s exports plummeted due to retaliatory tariffs, Bangladesh managed to climb the rankings despite a slight dip in its own export volume.
Market Rankings and Statistics
According to the latest data from the Office of Textiles and Apparel (OTEXA) under the US Department of Commerce, US retailers imported apparel worth $11.73 billion in January and February. This marks a 13.5% decline compared to the same period last year.
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Vietnam: Remains the top exporter, shipping $2.7 billion worth of goods (a 2.86% increase).
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Bangladesh: Now in 2nd place with $1.37 billion in exports. Although it climbed in rank, its export value decreased by 8.5% from last year’s $1.5 billion.
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China: Dropped significantly to 3rd place, exporting only $1.17 billion—a massive 57.65% decline from the previous year’s $2.77 billion.
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Indonesia & India: Ranked 4th and 5th respectively. Indonesia saw a 4% growth, while India faced a 24% decline.
The Impact of Tariff Wars
The shift in market dynamics is largely attributed to the complex tariff landscape initiated by the Trump administration. While initial retaliatory tariffs hit many nations, bilateral negotiations and legal challenges have reshaped the costs.
Bangladesh successfully negotiated its tariff rate down from an initial 37% to 19% following a mutual trade agreement in February. Although the US Supreme Court briefly declared some retaliatory tariffs illegal, a new 15% tariff under the 1974 Trade Act was implemented effective February 24.
Competitive Advantage
Despite the global slowdown, Bangladesh currently holds a more favorable position than its competitors. With a net tariff rate of 15-19%, it remains more attractive to US buyers than India (50% tariff) or China, which faces even higher barriers. This has led to a surge in work orders for Bangladeshi garments and footwear, though maintaining this momentum remains a challenge for local manufacturers.