Bangladesh experienced a 2.58% decline in garment exports to the USA, its largest export destination, totaling $5.46 billion from July to February this fiscal year.
The dip is attributed to American retailers importing 23% less clothing due to inflationary pressures.
Despite facing a 15.62% tariff, Bangladesh remains the USA’s third-largest garment supplier, behind China and Vietnam. Its competitive pricing and longstanding trade relations have sustained its position.
While the US market is showing signs of recovery, with clothing and accessory sales rising by 0.51% monthly and 8.05% yearly in February, uncertainties loom regarding interest rates and inflation.
In contrast, garment exports to the European Union, Bangladesh’s primary trade partner, increased by 3.27% year-on-year, reaching $16.23 billion. Notable growth was seen in exports to Spain, France, Netherlands, Poland, and Denmark.
However, exports to Italy saw a slight decline of 0.93%. Germany, the largest EU market, experienced an 11.63% drop in garment imports from Bangladesh.
Meanwhile, non-traditional markets witnessed a 10.83% increase in garment exports, totaling $6.30 billion. Japan, Australia, and South Korea saw notable growth, while exports to India dropped by 22.99%.
