Bangladesh has outperformed competitor countries to attain the highest year-on-year growth in apparel shipments to the US market in January, as American retailers and brands are placing large volumes of work orders here to capitalise on the favourable tariff regime.

In January, garment exports to the US from Bangladesh increased by 45.93 percent year-on-year to $799.65 million, according to data from the Office of Textiles and Apparel (OTEXA) of the US.

Exporters said this happened as the Trump administration raised tariffs on imports from China and Mexico, creating an advantage for Bangladesh in the US market.

In the run-up to the presidential election, Trump had declared that he would impose high tariffs on goods imported from China, Mexico, and other countries if elected.

Right after taking office, he increased the tariff on Chinese goods from 25 percent, which he had set during his last tenure as US president, to 35 percent.

On the other hand, Bangladeshi exporters have long faced a 15.62 percent duty on exports to the US. Under the current circumstances, Bangladesh has the opportunity to increase exports to the US.

In January, the US imported garment items worth $7.20 billion from all over the world, marking a year-on-year growth of 19.46 percent.

Meanwhile, China's apparel exports to the US rose by 13.72 percent to $1.60 billion.

Correspondingly, Vietnam secured 19.90 percent growth to reach $1.44 billion, India 33.64 percent to $473.27 million, Indonesia 41.70 percent to $419.95 million, Cambodia 29.95 percent to $324.99 million, and Mexico 1.20 percent to $193.70 million.

For Pakistan, it was 17.50 percent to $179.73 million, whereas for Korea, it was 5.54 percent to $16.43 million. Honduras witnessed a decline of 26.10 percent to $112.02 million, according to the OTEXA.

In the July–February period of the current fiscal year 2024–25, Bangladesh's garment exports worldwide totalled $26.80 billion.

This represents substantial growth of 10.64 percent from the $24.22 billion attained during the same period last fiscal year.

This increase signifies the resilience and dedicated efforts of the industry towards promoting sustainability and continuous economic advancement, said Faruque Hassan, former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

It is significant, considering that the global market experienced a 5 percent year-over-year decline in 2024, he said.

Breaking it down further, Bangladesh's woven exports rose by 10.22 percent, increasing from $11.30 billion in FY 2023–24 to $12.46 billion in FY 2024–25.

The knitwear sector experienced even more significant growth of 11.01 percent, with exports climbing from $12.92 billion to $14.34 billion.

"While we celebrate these achievements, our month-by-month analysis indicates some challenges ahead," Hassan said over WhatsApp.

"Following a period of strong growth in the second quarter of FY 2024–25, we observed a deceleration starting in January 2025, which continued into February," he said.

In February this year, garment exports reached $3.24 billion, marking modest growth of 1.66 percent, with woven exports slightly declining by 0.44 percent while knitwear exports grew by 3.77 percent.

"As we look ahead, we recognise the dual nature of our path—both opportunities and challenges. There are significant internal factors that the government is earnestly working to address, and the industry itself is making proactive adjustments," he said.

Declining price levels remain a major concern that necessitates strategic actions to remodel the business, said Hassan.

Conversely, the potential for growth in various items, fibres, and markets, alongside trade diversification due to geopolitical tensions and trade wars, presents immense opportunities for Bangladesh, he added.