Bangladesh: Garment exporters report reducing unit prices for EU market due to increased competition caused by US tariffs
"Bangladesh forced to cut RMG prices to stay afloat in EU market", 16 November 2025
Bangladesh's garment exporters are being forced to reduce unit prices in the European Union market due to aggressive pricing strategies adopted by competitors, particularly India and China.
This heightened competition is a direct result of both countries facing high reciprocal tariffs in the United States (US) market, compelling them to pivot their focus to the EU.
Exporters have noted that while Bangladesh's year-on-year growth in the EU market remains better than that of India and China for the January-September period, the growth rate has slowed significantly since the US reciprocal tariffs came into effect in July. As a result, exporters believe Bangladesh must urgently define a strategy to maintain its market share in its primary export destination...
Data from the Bangladesh Apparel Exchange shows that from January to September 2025, the EU's total apparel imports expanded by 7.14%...
....with the total imported volume increasing by 13.80% (million kg), while the average unit prices declined by 5.86% (€/kg). This indicates strong demand but intensified price competition...
Bangladesh's expansion was driven by a 15.55% increase in volume, coupled with a 2.06% decrease in unit prices. This suggests Bangladesh gained market share through a combination of competitive pricing and sustained buyer interest.
While Bangladesh's unit price decreased by 2.06%, its key competitors – China, India, Pakistan, and Cambodia – experienced deeper unit price cuts, reflecting the intensity of the competition...
Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), attributed the severe pricing pressure directly to the US policy.
"The Trump administration's high reciprocal tariffs on India and China have caused these two countries to aggressively target the European market. Indian and Chinese exporters are trying to increase their exports to Europe by lowering their garment prices, which has resulted in a slight reduction in our orders from Europe," he told TBS...
"We may lose some orders from Europe in the coming months," he added...