Bangladesh's apparel exports to the US reached $4.25 billion in the first six months of this year, which reflects a 25.13 per cent increase from $3.4 billion during the same period in last year, according to the US Department of Commerce.
Chinese apparel exports to the US witnessed a sharp decline in the first half of this year due to the tariff row.
During the first half of this year, the US imported $38 billion worth of garments from around the world, which is an increase of 6.76 per cent compared to the same period last year, according to data released by the Office of Textiles and Apparel, a division of the US Department of Commerce.
Whereas Chinese apparel exports to the US declined by $1.11 billion, Bangladesh and Vietnam saw significant gains, increasing their exports by $850 million and $1.19 billion respectively.
Arshad Ali, chief operating officer of Epyllion Group, a major RMG exporter, said some of the orders are shifting from China to countries like Bangladesh.
The trend is likely to continue in the coming seasons if the US fully implements its reciprocal tariffs.
On July 31, the US administration announced revised tariff rates on imports from several countries.
Under the new policy, the announced tariff rates on apparel goods are 20 per cent from Bangladesh and Vietnam, and 25 per cent from India, however, due to India's continued purchase of Russian fuel oil, US President Donald Trump imposed an additional 25 per cent tariff on Indian products, bringing the total tariff to 50 per cent.
Tariffs for Indonesia, Cambodia and Pakistan have been fixed at 19 per cent. Negotiation talks are still underway regarding Chinese imports, though the announced rate for China stands at 30 per cent.
Last year, Bangladesh exported $7.34 billion worth of garments to the US, holding a 9.26 per cent market share. By the end of June this year, that share had increased to 10 per cent.
Economics Professor Mohammad Shahadat Hossain told Stream that the decline in China's apparel orders traces back to the first term of US President Trump when the two countries were in a trade war.
"Since then, apparel orders from China started to decline gradually. During last year's election campaign, Trump intensified this by announcing further tariffs on goods from China," he added.
Epyllion Group COO Arshad said, "Orders for the upcoming summer season will start coming in from September.
"We are in a favourable position. Orders from European buyers will also increase as some of those buyers are linked to the US market."
He further mentioned that if the Bangladeshi factories use US cotton more, the US tariff can be lowered.
Meanwhile, Vietnam has firmly established itself as the leading apparel exporter to the US. In the first six months of 2025, Vietnam exported $7.77 billion worth of RMG, an 18 per cent increase more than in the same period last year. Currently, Vietnam's share of the US apparel market is 19.79 per cent.
On the contrary, in the first six months of 2025, China's RMG exports to the US were $5.73 billion, reflecting a 16 per cent decrease compared to the same period last year.
Moreover, China's market share of the US apparel market has dropped to 18.88 per cent.
According to the US Department of Commerce's Office of Textiles and Apparel, India exported $2.84 billion worth of RMG to the US in the first half of 2025, up 16 per cent from the same period last year. On the other hand, Indonesia exported $2.26 billion worth, marking an 18 percent increase year-on-year.
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