RMG exports to the US increased by 14% in FY25

Bangladesh’s garment exports to the US reached the highest growth among all the export destinations in the 2024-25 fiscal year, scaling up to $7.54 billion, from last year, a rise of  14%. This growth came massively because US buyers shifted their orders from other related countries, particularly China, and also faced delays from Vietnam. As a result, the USA now accounts for 19.18% of Bangladesh’s total exports of apparel. According to the managing director of Shasha Denims Ltd., Shams Mahmud, a lot of American companies shifted to Bangladesh due to ongoing trade tensions with China and Vietnam’s supply chain disruptions.

Woven garments paved the way for exports to the USA, $4.94 billion shipped, and it eventually grew 13%. Knitwear performed well, increasing 15% to $2.59 billion. Together, Bangladesh exported over $39 billion of apparel in FY’25, marking a 9% overall growth. The EU – European Union remained Bangladesh’s largest market, buying around half of all its garment exports. Exports to the EU rose by 9% to $19.7 billion, with Germany marking as the top buyer, next to the Netherlands, Spain, and France.

Other prominent markets included the UK, Japan, and Canada. According to Mr. Mohiuddin Rubel of the BAE – Bangladesh Apparel Exchange, while exports to traditional markets (US, EU, UK, and Canada) remain robust: making up 84% of total summed up shipments; from sales to non-traditional markets (like Japan, Australia, and India) are still prominently limited, although they grew to $6.44 billion by 6%.

Rubel pointed out that the US has recovered from COVID-19 disease disruptions faster than the European Union, and its diminished reliance on Chinese imports has benefited the whole country of Bangladesh. Nevertheless, the concerns remain about the USA’s possibility of imposing a 35% tariff on Bangladeshi goods. Mr. Mahmud warned that if that situation happens, a lot of countries may shift their focus to the EU, with a chance of triggering a price war there. A similar scenario could unfold in the US, where higher amount of import costs may weaken consumer demand rate.