US Apparel Export: New Business Opportunities Emerge as Countervailing Duties Reduced

Dhaka, August 2, 2025: Bangladeshi exporters are optimistic about new opportunities in the US market as countervailing duties on Bangladeshi products have been reduced to 20%, lower than those imposed on competitors like China and India. The implementation of these duties has also been deferred by a week, now set for August 7, as announced by US President Donald Trump.

The reduced duty rate, down from 35% to 20%, offers significant relief to Bangladesh’s export sector. Exporters believe this will enhance their competitiveness in the US market, particularly as China faces higher duties, potentially diverting substantial orders to Bangladesh. India, with a 25% duty, may also lose some market share, creating further opportunities for Bangladesh.

Mohammad Abdus Salam, Managing Director of Asian-Daf Group, told Prothom Alo, “The reduction of countervailing duties from 35% to 20% is a huge relief. Being close to the duty rates of competing countries, we can stay competitive in the market.” However, exporters caution that while the US market presents growth potential, higher duties on Chinese products could push China to aggressively target the European Union (EU) market, increasing competition for Bangladesh there. SM Abu Tayeb, Managing Director of Independent Apparels in Chattogram, told Prothom Alo, “Even with competitive duty rates, we need to reduce business costs to stay competitive. Unfortunately, port and private depot charges are rising at a time when cost reduction is critical.” The US remains Bangladesh’s largest single export market. In the 2024-25 fiscal year, Bangladesh exported goods worth $8.69 billion to the US, accounting for over 18% of its total export revenue. Of this, ready-made garments (RMG) comprised over 86%, valued at $7.54 billion. Shovon Islam, Managing Director of Sparrow Group of Industries, told Prothom Alo, “We are in a strong position. Even if demand in the US market dips due to countervailing duties, our exports are unlikely to decline as orders shift from China. However, we need to enhance our capacity and require government support to seize these opportunities.” The top 10 apparel-exporting countries to the US include Vietnam, China, Bangladesh, India, Indonesia, Mexico, Honduras, Cambodia, Pakistan, and Korea. President Trump has imposed countervailing duties of 20% on Vietnam and Bangladesh, 30% on China, 25% on India, 19% on Indonesia, Cambodia, and Pakistan, and 15% on Korea. Fazlul Haque, former president of BKMEA, told Prothom Alo, “The reduction of duties from 35% to 20% is undoubtedly good news. However, orders may dip in the coming months due to additional duties. The government must ensure small and medium factories remain viable during this period. If these duty rates persist, new opportunities will emerge for the RMG sector.”