Bangladesh's ready-made garment (RMG) sector has started feeling the effects of the Trump administration's reciprocal tariff regime, with export volumes to the US market showing a declining trend.
This is because the new tariffs have eroded consumer purchasing power in the US. As a result, buyers of ready-made garments have reduced imports by 18.53 per cent. This decline has directly affected nearly all exporting countries, including Bangladesh. Notably, Bangladesh's RMG exports to the US market fell by 10.77 per cent during the period under review.
According to data, from January to October 2025, total US apparel imports amounted to $66.63 billion, representing a marginal year-on-year decline of 0.61 per cent compared to the same period in 2024. In volume terms, imports fell by 2.24 per cent, while average unit prices increased by 1.67 per cent. However, US imports from Bangladesh during the same period totalled $7.08 billion.
During the same period, US apparel imports from Vietnam, the top source of its clothing supply, decreased by about 5 per cent. Imports from China, which ranked second, dropped by 53.27 per cent. In addition, imports from India fell by 28.57 per cent, Indonesia by 13.27 per cent, Mexico by 8.48 per cent and Pakistan by 0.52 per cent.
Under the new US tariff structure, effective from August last year, Bangladeshi apparel exports to the US face an additional 20 per cent duty, taking the total tariff burden to 36 per cent, with prospects of rising to around 50 per cent under the announced reciprocal measures. This sharp increase has coincided with a contraction in US apparel consumption, as higher prices have reduced Americans' purchasing power.
Subsequently, US buyers of ready-made garments, facing uncertain demand and policy volatility, are consolidating orders, keeping lean inventories, and relentlessly pushing for lower prices. Yet production costs in exporting countries continue to rise, creating a squeeze that threatens factory viability.
Experts, however, warn that the consequences could also impact the US itself. Higher tariffs have forced American consumers to buy fewer garments, while erratic policy changes have left brands reluctant to plan for the long term. Once pre-tariff inventories are exhausted, supply shortages could emerge, pushing prices higher again and fuelling inflation, precisely the opposite of the policy's stated intent.
For Bangladesh, the challenge is existential. The US is its largest export destination, accounting for $7.34 billion in garment exports last year and supporting millions of livelihoods. Diplomacy, coordinated trade negotiations, and strategic market diversification are no longer optional. But they are urgent necessities. Without swift action to secure tariff relief or alternative pathways, the country's flagship industry risks being sidelined from its most important market.
