Google Alert – Bangladesh Army
The effects of the counter tariffs imposed by the US administration, effective from August 7, are now clearly visible. Due to the imposition of high tariffs on Chinese and Indian goods in the US market, Bangladesh has come into focus for buyers. This situation has opened new possibilities for the country’s export-oriented garment sector. Entrepreneurs and exporters in Bangladesh’s ready-made garment industry say that the high tariffs on Chinese and Indian goods in the US market are prompting buyers to quickly shift their orders, and Bangladesh is now being considered a new hub for investment and sourcing.
This situation is not only increasing exports but also creating opportunities for new investments, employment, and stable growth in the industry. Industry stakeholders are optimistic that the flow of orders diverted from China may increase further in the coming months. European buyers are also showing interest in increasing their orders from Bangladesh. With proper support and infrastructure development, Bangladesh could achieve $100 billion in garment exports by 2028.
Bangladesh tops US T-shirt exports
In the first six months of 2025, Bangladesh has risen to the top in T-shirt exports to the US market—surpassing renowned exporting countries like Nicaragua, Honduras, and China. This marks a historic achievement for Bangladesh.
According to data from the United States International Trade Commission (USITC), during the first half of this year, the US imported $3.52 billion worth of T-shirts from 117 countries. Among them, Bangladesh accounted for $373.2 million, surpassing Nicaragua’s $361.2 million in exports.
Bangladesh had never before held the top position in the US T-shirt market. From 1989 to 2024—a span of 36 years—countries like Honduras, Nicaragua, Hong Kong, Jamaica, Mexico, and China dominated this market. Except for China and Hong Kong, the other countries benefited from tariff advantages due to trade agreements with the US.
However, this picture changed at the beginning of 2025. Starting April 2, the Trump administration imposed a minimum 10% additional tariff on imports from all countries. As a result, even Nicaragua and Honduras—who previously enjoyed tariff benefits—had to pay extra tariffs on T-shirt exports to the US Amid this new challenge, Bangladesh’s T-shirts reached the top of the US market.
Analysts believe that the pressure of tariffs disrupted exports from other countries, creating a golden opportunity for Bangladesh’s garment sector.
US counter tariffs and their impact on Bangladesh’s market
On July 31, US President Donald Trump set a 20% counter tariff on Bangladeshi products. In contrast, Chinese goods faced a 30% tariff and Indian goods 25%. Additionally, due to India’s import of fuel from Russia, an extra 25% tariff was imposed on Indian goods. As a result of the high tariffs on Chinese products in the US market, buyers began seeking alternatives, and Bangladesh’s garment sector is being viewed as a viable substitute.
The US is the largest single market for Bangladesh’s ready-made garments. The top 10 exporting countries to the US market are: Vietnam, China, Bangladesh, India, Indonesia, Mexico, Honduras, Cambodia, Pakistan, and Korea. Due to changes in the US tariff structure, Bangladesh is advancing to capture the market share lost by China. From January to June this year, China’s garment exports declined by $1.1 billion, creating a major opportunity for Bangladesh and Vietnam. During the same period, Vietnam’s exports increased by $1.19 billion, and Bangladesh’s by $850 million.
Industry experts say that US tariff policies have enhanced the competitiveness of Bangladeshi products. Bangladesh’s market share in the US reached 10% in June this year, compared to 9.26% in the same period last year—a significant increase. This kind of growth marks a new beginning for the export-oriented sector and will strengthen the country’s export growth in the long term.
Surge in export orders
In the past two weeks, there has been noticeable pressure from US buyers for increased purchase orders. Previously suspended orders have also started to return. Primarily, companies that have long-standing relationships with US buyers are receiving the most new order proposals.
Shovon Islam, managing director of Sparrow Group of Industries, stated, “For the upcoming spring season, we have 5–10% additional orders, and for summer, 10–15%. To retain orders shifting from India and China, we have already taken permission for extra overtime.”
SM Khaled, managing director of leading exporter Snowtex Group, said, “One US buyer who produced jackets on 7 lines last year now wants to expand to 17 lines. Another buyer wants to increase production from 20 lines by an additional 10–15 lines. To accommodate the extra orders, we will need to invest around $250,000. If conditions remain favorable, exports will exceed $35 million.”
In the 2024–25 fiscal year, Bangladesh exported $8.69 billion to the US, with nearly 18% of total exports going to the American market. Of this, $7.54 billion came from the ready-made garment (RMG) sector. This clearly proves that the US market is a vital export destination for Bangladesh.
Influx of Chinese investment
Chinese investors are also showing interest in Bangladesh. Handa (Bangladesh) Garments Company will establish a garment factory in the Mirsharai BEPZA Economic Zone in Chittagong with an investment of around $40 million. Similarly, Kaixi Group will build a factory to produce underwear and other garments with an investment exceeding $40 million.
According to BEPZA authorities, from August 2024 to March 2025, 34 Chinese investors have submitted proposals. Between July and March, eight agreements have been finalized, with total proposed investments of around $150 million. These companies will produce garments, bags, and light engineering products.
BKMEA President Mohammad Hatem said, “Chinese investment is positive. They will not just invest—they will bring buyers too. But to increase orders, we need banking support, uninterrupted gas and electricity supply, and customs cooperation.”
Employment and new industrial initiatives
Barendra Rajshahi Textile Limited in Rajshahi has reopened after 22 years. Under the initiative of PRAN-RFL Group, the mill has provided employment to nearly 2,000 workers within six months. According to plans, investments in telemarketing, garments, and other new sectors aim to create 10,000 more jobs.
PRAN-RFL Group Chairman and CEO Ahsan Khan Chowdhury said, “The era of mass migration to Dhaka for work is ending. We want to establish industries in remote areas and deliver job offer letters directly to locals. Investment in labor-intensive industries in Rajshahi is part of that vision.” The Rajshahi mill will be 100% export-oriented, with special plans for female employment.
Bangladesh gains from China’s lost orders
Due to US tariffs, China’s exports fell by 16% in the first half of the year. China’s market share dropped to 18.88%. Meanwhile, Vietnam exported $7.77 billion and reached the top of the market. Bangladesh’s market share rose to 10%. Industry insiders say US tariff policies are shifting Chinese orders to Bangladesh.
From January to June this year, China’s exports fell by $1.1 billion. During the same period, Vietnam’s exports rose by $1.19 billion, and Bangladesh’s by $850 million.
Industry experts say US tariff policies are redirecting Chinese orders and boosting Bangladesh’s competitiveness. Tusuka Group Chairman Arshad Jamal said, “Orders for the upcoming summer season will start arriving from September. Then we will know how much additional volume we have received. Using US cotton can reduce tariffs slightly, which will further enhance our competitiveness.”
Challenges and risks in the industry
Despite positive signals, challenges remain. Many mid- and low-tier factories are on the verge of closure. BGMEA President Mahmud Hasan Khan noted that electricity and gas shortages—especially in gas-dependent backward linkage industries—pose major challenges.
In the past year, 353 factories have shut down—214 in Savar, 72 in Gazipur, 21 in Chittagong, and 26 in Narayanganj—leaving 119,842 workers unemployed. Declining orders, loan defaults, LC complications in raw material imports, high interest rates, and rising production costs are the main reasons for closures.
New gas connections are halted, disrupting production. Over 1,100 applications have been submitted to Titas Gas, but most have not received connections. As a result, the industrial sector is in crisis, new employment is not being created, and production costs are rising by 8–10%.
Future prospects and policy needs
Despite all challenges, industry stakeholders remain optimistic. Diverted orders from China, increased demand from US buyers, Chinese investment, and coordinated government policies are opening new doors for Bangladesh’s garment sector.
Market experts say if the US tariff structure remains unchanged, Bangladesh’s export growth will accelerate, and new investment and employment trends will emerge. However, government support in infrastructure, electricity and gas supply, banking, and customs must be ensured.
Experts further emphasize that to boost exports, production costs must be reduced. This includes controlling electricity and gas expenses, improving worker skills, adopting modern technology, and easing raw material imports. Bangladesh Bank experts note that easier loan terms, faster LC processing, and reduced foreign exchange risk could further lower production costs.
The US tariff situation proves that global trade competition is always shifting. When tariffs on
China increase, Bangladesh gains importance as an alternative market. But this alone isn’t
enough for long-term sustainability. To permanently increase exports, Bangladesh must improve product quality, build brands, expand markets, and meet international standards. The Ministry of Industries and Commerce has already taken various initiatives. The government is offering incentives to revive industrial zones in Narayanganj, Gazipur, Chittagong, and Savar.
Additionally, special facilities are being provided in BEPZA zones to attract Chinese and Vietnamese investment and develop new export markets.
At the same time, ensuring worker welfare and regulating the labor market is crucial. To increase production and fulfill orders, worker skills and productivity must be enhanced, along with ensuring a safe working environment.
Bangladesh’s position in global competition
Bangladesh’s position in the global garment market is steadily strengthening, although competition remains from countries like India, Vietnam, and Cambodia. US counter tariffs have created a unique opportunity for Bangladesh—especially as lost Chinese orders are being redirected to the US market and Bangladesh is capturing them.
Bangladesh’s production costs are low, worker skills are nearly at international standards, and transportation facilities are relatively good. For these reasons, US buyers are choosing Bangladesh as an alternative to China. Experts say, “This opportunity is not just for a temporary market. If Bangladesh can maintain quality control, timely delivery, and technological advancement, its position in the US market will become permanent.”
Social and economic impact
The growth of the export sector is creating new opportunities in the labor market. Female employment is expected to increase significantly, especially in the Rajshahi and Chittagong regions. Additionally, small and medium-sized entrepreneurs will be able to participate in meeting the new demand.
However, without resolving issues such as uncoordinated policies, factory closures, gas and electricity shortages, and loan defaults, sustainable growth in the industry will not be possible. The government should urgently ensure the necessary infrastructure, banking facilities, and policy coordination for the industry.
It is worth noting that the impact of US counter tariffs is already evident. Lost Chinese orders are being redirected to Bangladesh, US buyers are placing additional orders, Chinese investors are arriving, and the export sector is strengthening. However, without addressing challenges such as the closure of mid- and low-tier factories, energy shortages, loan defaults, and rising production costs, sustainable progress will remain unattainable.
According to relevant industry experts, now is the time to establish Bangladesh as a permanent export hub. If steps are taken to reduce production costs, improve worker skills, adopt modern technology, ensure banking facilities, and coordinate policies, Bangladesh’s ready-made garment sector will become stronger not only in the US market but globally. Bangladesh’s garment industry is facing challenges on one hand, and on the other, new doors of opportunity are opening. This is a decisive moment. If government policy, commercial initiatives, and coordination among workers and investors align properly, Bangladesh will be able to sustain itself as a strong competitor in the international apparel market in the long term.