Bangladesh’s garment exports to the US increased 10.10 per cent in the first two months of the year. Shipments are expected to grow exponentially if the 25 per cent duty by the US on Chinese imports comes into effect. If that materialises, many international retailers will look to Bangladesh as an alternative sourcing destination.

Bangladesh’s garment exports to the US market have been showing an upward trend over the last few months because of different reasons like the tariff war between the US and China and enhanced workplace safety. Bangladesh expects a rise in garment exports to the US as the economy is rebounding there. Bangladesh has been sending garment products facing a 15.62 per cent duty whereas the duty for other garment exporting nations is relatively low. Even then the country is competitive in the US markets.

However, despite a shift towards lower-cost manufacturing bases like Vietnam and Bangladesh, China is still the single biggest source of apparel globally. Companies still source 11 per cent to 30 per cent of their apparel from Chinese factories. While this is down from 30 per cent to 50 per cent the year before, China is still the most important source of clothing.