Trump's tariff policy is a blessing for Bangladesh's garment sector
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Photo: Collected
The global trade war between economic superpowers has created economic crises for some countries, but it has also brought opportunities for many.
According to economists, US President Donald Trump's tariff on imports from some countries, including China, is bringing benefits to some countries, including Bangladesh. An additional 10 percent tariff has been imposed on Chinese products. This has emerged as a possibility for Bangladeshi entrepreneurs as US buyer companies have withdrawn their purchase orders from China.
As Bangladesh's garment exports to the US exceeded 80 crore dollars in January of this year, analysts believe that this indicates new prospects for Bangladesh's ready-made garment exports to the US market. According to a report published in the newspaper, this export growth is 45.93 percent higher than the same period last year. In January of last year, the country's exporters were able to export garments worth 54 crore 79 lakh dollars.
Not only that, this growth is much higher than competing countries like China, Vietnam, Indonesia, and India. Regaining a strong foothold in the US market after a long time is seen as a potential opportunity for the country's garment sector.
According to the latest statistics from the Office of Textiles and Apparel (OTEXA) under the US Department of Commerce, US importers imported 720 crore worth of ready-made garments from different countries around the world in January. In January last year, they imported 603 crore dollars worth of garments. This means that US ready-made garment imports increased by 19.5 percent in January this year.
Although there was no major growth at the end of 2024, Bangladesh's garment sector has returned to a positive trend. In total, 734 crore dollars worth of ready-made garments were exported from Bangladesh last year. This export is 0.75 percent more than in 2023. Exports to the US market decreased by 25 percent to $7.29 billion in 2023 due to the impact of the Russia-Ukraine war.
Within two weeks of US President Donald Trump taking office, the imposition of additional tariffs on imports of goods from Canada, Mexico and China has brought new potential to the market, industry stakeholders believe.
They say that an additional 10 percent tariff has been imposed on Chinese products. This will cause US buyers to shift their purchase orders from China. As a result, there will be an opportunity for Bangladesh to get additional purchase orders. Investors may even be interested in moving factories from China to other countries. Bangladesh can also take that investment opportunity.
According to the latest data from the US Office of Textiles and Apparel (OTEXA), the United States imported 720 crore dollars worth of ready-made garments in January, which is 19.4 percent more than last year. China exported the most garments, amounting to 603 crore dollars. Next is Vietnam, which exported 144 crore dollars worth of garments. However, Bangladesh has achieved much higher growth compared to them, which indicates a stronger position in the country's market.
Bangladeshi entrepreneurs say that US buyers are considering Bangladesh as a more attractive source due to its low production costs and skilled labor force. Especially if the government can ensure gas and electricity supply, Bangladesh can achieve greater growth and become the second top exporter in the US market.
According to the concerned, another reason for the growth of Bangladesh's exports to the US market is the country's buyers' trust in reliability and quality. In the past few years, Bangladeshi garment factories have established production systems in an improved environment following international standards. Due to increasing the skills of workers, developing technology, sustainable production systems and building good relationships with various international brands, the Bangladeshi garment industry is now much more competitive than before. Experts say that if Bangladesh wants to take a stronger position in the export market, it must ensure infrastructural development, uninterrupted supply of gas and electricity. In addition, emphasis should be placed on diversifying production, exploring new markets and producing high-value garments. Positive growth in the US market shows a ray of hope for Bangladesh, which indicates greater success in the days to come.
