Bangladesh Gains Ground in Global Apparel Market
Bangladesh is quickly becoming a top choice for global apparel buyers, thanks to new U.S. tariffs that have created a significant disadvantage for its primary competitors, India and China. The Trump administration has imposed additional tariffs of 25 percent on Indian goods and 30 percent on Chinese products, prompting many buyers to look elsewhere. In contrast, Bangladesh faces a relatively lower 20 percent tariff on its exports, making it an attractive alternative.
This shift in trade dynamics offers a unique opportunity for Bangladesh’s ready-made garment (RMG) sector. Apparel exporters believe the country has the capacity and expertise to meet the growing demand. Mahmud Hasan Khan, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), stated that Bangladesh is fully capable of handling any order diversion from India and China. He assured that there would be "no problem to meet the additional supply demand."
Leaders in Bangladesh’s textile industry are confident about their ability to seize this opportunity. Muhammad Hatem, President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), emphasized that the country has enough preparation to increase supply according to the demands of U.S. and other international buyers. He pointed out that lower production costs and tariffs in Bangladesh make it an appealing option for apparel manufacturers.
To strengthen its trade relationship with the U.S., the Bangladesh Textile Mills Association (BTMA) announced plans to increase cotton imports from the United States to $1 billion. This decision, revealed in a recent press release, follows successful trade negotiations that reduced the tariff on Bangladeshi goods from 35 percent to 20 percent.
Market analysts are optimistic but also cautious. While the new tariffs represent a major challenge for India, they warn that this window of opportunity may not last forever. Experts urge Bangladesh to act swiftly by developing a clear roadmap and fostering public-private partnerships to solidify its position in the global market.
Mohiuddin Rubel, a former director of BGMEA, echoed this sentiment, stating, "This new tariff policy opens up immense possibilities for Bangladesh. I believe our export sector is now better positioned than ever before." He noted that India had previously benefited from a decline in China's market share, but the new policy could reverse that trend.
India's Market Share at Risk
The increased tariffs pose a serious threat to India's apparel exports to the U.S. The sector had experienced significant growth, with exports rising from $3.02 billion in 2020 to $4.70 billion in 2024—a 55.34 percent increase. Analysts predict that the new 50 percent tariff (which includes a 25 percent retaliatory tariff plus 25 percent for importing Russian oil) will severely impact India’s competitive pricing, leading to a substantial loss of market share.
The strained relationship between the U.S. and India is rooted in trade disputes over issues such as genetically modified foods and agricultural policies. These tensions, combined with existing trade agreements between the U.S. and other nations, have made it increasingly difficult for India to compete effectively.
For Bangladesh to fully capitalize on this opportunity, experts emphasize the need to maintain high quality, ensure timely delivery, offer competitive pricing, and maintain political stability. These factors will be critical in accelerating Bangladesh’s market penetration in the U.S. and establishing itself as a dominant exporter in South Asia.
The ongoing trade challenges between the U.S. and India highlight the importance of strategic positioning for Bangladesh. As the global apparel market evolves, the country must continue to adapt and innovate to sustain its newfound advantage.