Despite a 20% reciprocal tariff imposed by the US under President Donald Trump’s administration, garment exports to the USA – the nation’s top export destination – rose by 5.14% to US $ 2.59 billion between July and October.
According to data gathered by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) from the Export Promotion Bureau (EPB), 19.92% of Bangladesh’s total garment exports during this time period went to the USA.
Local exporters must pay a 35.5% duty on exports to the United States of America, which includes the previous 15.5% Most Favoured Nation (MFN) tariff as well as the 20% reciprocal tariff.
Bangladesh’s 20% reciprocal tariff rate offered local exporters a competitive edge over other countries that export clothing, which are subject to somewhat higher tariffs.
Exports slightly increased in October, according to former BGMEA President Anwar-Ul-Alam Chowdhury (Parvez), when US purchasers received work orders from Bangladesh that had been delayed because of reciprocal tariff negotiations.
Since sales of clothing products to the US have also slightly decreased, he continued, exports of clothing to the USA depend on a variety of circumstances.
Furthermore, Bangladesh’s exports to the US market may soon be impacted by the Trump administration’s reduction of tariffs on Malaysia, Thailand and Cambodia.
Positive momentum was also seen in exports to the UK and Canada. Canada now accounts for 3.4% of Bangladesh’s garment exports, with US $ 442.27 million in exports, up by 10.84% from the previous year. With an 11.81% share, apparel exports to the UK totalled US $ 1.53 billion, up by 2.72% from the previous year.
RMG exports to non-traditional (developing) markets decreased by 2.69% during that time, while demand in conventional markets remained steady.
While the woven segment performed better with a 2.66% growth in exports, the knitwear section climbed marginally by 0.42%, demonstrating stable performance.
From July to October of FY 2025–26, Bangladesh’s total RMG exports came to US $ 12.99 billion, a 1.40% increase over the same period in the previous fiscal year.
