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The United States has recently raised tariffs on Bangladeshi apparel exports, with synthetic products now facing a 37% rate (up from 28%) and cotton garments also rising sharply to 37% (from 15.2%). This shift directly impacts Bangladesh’s USD 6.8 billion RMG export segment to the U.S., which makes up over 88% of its total exports to the country. Despite these challenges, Bangladesh’s stronghold in low-cost cotton knitwear and its growing market share in the U.S. positions the sector to navigate these disruptions strategically.
This comprehensive analysis delves into how the new tariff landscape reshapes Bangladesh’s competitive position in the U.S. apparel market. It highlights the country’s strengths in price-sensitive segments, outlines the risks posed by inflation and global trade tensions, and provides data-backed comparisons with peer economies such as Vietnam, India, and China. The report also offers actionable strategies, ranging from trade negotiations and sourcing adjustments to market diversification, to help future-proof Bangladesh’s RMG sector in an increasingly protectionist global trade environment.
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