Bangladesh’s ready-made garment (RMG) exports to the United States rose by 21.66% year-on-year in the first seven months of 2025, reaching a total value of $4.98 billion, according to the latest data from the Office of Textiles and Apparel (OTEXA) under the US Department of Commerce. This marks the highest growth rate among the top five RMG-exporting countries to the US.

In July alone, Bangladesh exported garments worth $700 million, reflecting a monthly growth of 4.97% compared to the same month last year.

The growth comes at a time of shifting global trade dynamics, with several major buyers diversifying away from China due to the ongoing trade war and increasing tariffs. Bangladesh has reportedly benefited from redirected orders, many of which were previously handled by Chinese manufacturers.

The OTEXA data shows that the US imported $45.8 billion worth of garments globally during the January–July period, a 4.96% increase compared to the same period in 2024. While Vietnam and India also recorded double-digit growth, Bangladesh outpaced all other top exporters.

However, new challenges have emerged. On August 7, the US administration implemented revised countervailing duties on garment imports from several countries. Bangladesh and Vietnam are now subject to a 20% countervailing duty, while India faces a 25% duty. China continues to face the highest duty at 30%, while Indonesia, Cambodia, and Pakistan are each subject to 19%.

Industry insiders suggest that these duties may impact competitiveness in the coming months. Several exporters reported that some US buyers are urging them to absorb part of the additional duty costs or consider relocating production to low-tariff countries.

“Some of the US buyers are demanding a part of the additional countervailing duty from us,” said Sharif Zahir, Managing Director of Ananta Group, one of Bangladesh’s leading garment exporters. “They are also suggesting we explore production bases in countries like Egypt or Haiti, where the countervailing duty is low. These are new challenges we will have to navigate.”

Bangladesh exported $7.34 billion worth of garments to the US in 2024, which was only 0.75% higher than the previous year. This modest growth followed a 25% decline in 2023, driven largely by the global economic slowdown triggered by the Russia-Ukraine war.

The recent surge in 2025 is widely attributed to geopolitical shifts and buyer diversification strategies. Analysts warn, however, that sustaining this growth will require strategic responses to the evolving tariff environment and global sourcing trends.