RMG exports to US tumble after Trump tariffs
Shipment drops by nearly 3% in August-October
Bangladesh's ready-made garment (RMG) exports to the United States, the country's largest single export market, declined by almost 3% between August and October, a drop that sector insiders attribute to the new reciprocal tariff imposed by the Trump administration last August.
According to the Export Promotion Bureau (EPB), RMG exports to the US market from August to October in the current fiscal year (FY2025-26) totalled $1.79 billion, representing a decrease of $53 million (2.88%) compared to the preceding period.
Md Shehab Udduza Chowdhury, vice president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told TBS, "The main reason for the decline in Bangladesh's exports to the US market is the new 20% reciprocal tariff on our products, which has led to market contraction.
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"Our projection is that exports to that market may also decrease in the coming months due to lower demand," he said. Shehab, who is also a leading apparel exporter, added, "Two weeks ago, I travelled to the US and visited shops of about 20 brands. I found very few customers, and the sales staff also informed me that sales were declining."
However, total exports to the US from July to October of FY26 reached $2.59 billion, up from $2.46 billion in the same period of FY25 – a modest growth of 5.14%, driven largely by a strong jump in July shipments, which increased by 19%.
Industry insiders noted that this growth was mainly due to advance purchasing to avoid the new tariff imposed on August 7.
"This surge was largely driven by advance purchasing ahead of the expected tariff implications," said Mohiuddin Rubel, former director of BGMEA.
Rubel, also the managing director of Bangladesh Apparel Exchange – a platform that promotes sustainable and innovative practices in Bangladesh's apparel sector – said, "The following three months reflect a negative or weakening growth trend, signalling underlying demand and policy uncertainties."
"The next few quarters will be critical," he warned, adding that it will be important "in determining whether Bangladesh can turn this challenging tariff environment into an opportunity through deeper value addition, market diversification, and stronger trade diplomacy."
Since last August, the Trump administration has imposed significant tariffs on most goods imported into the United States. Under the new tariff structure, Bangladesh's ready-made garments – along with other products – are subject to an additional 20% tariff.
Not only Bangladesh, but China, India, Pakistan, Vietnam, Cambodia, and almost all of the country's competitors have been hit with new tariff rates. Among them, the tariffs imposed on China and India are higher compared to Bangladesh.
As a result, Bangladeshi exporters had expected that US buyers would shift orders from China and India to Bangladesh. But in reality, this has not happened.
There is also no reliable data yet on whether exports from China, India, or other countries have declined following the new tariffs. The Office of Textiles and Apparel (OTEXA), a division under the US Department of Commerce, has not published its apparel import data since last July, making it unclear whether US imports from other origins have increased or decreased.
Meanwhile, Indian media outlets have reported that the country's textile exports to the US declined in August following the imposition of new tariffs.
