Bangladesh’s apparel exports to the European Union (EU), its largest single market, are coming under renewed pressure as competitors—most notably China—intensify shipments to the 27-nation bloc following the United States’ new tariff regime.

Industry data showed that China, Vietnam, Cambodia and Pakistan have steadily expanded their presence in the EU over the past decade. But the competitive landscape has shifted sharply in recent months, with suppliers redirecting exports to Europe as reciprocal US tariffs prompt manufacturers to diversify their destinations.

An analysis of Eurostat figures revealed that China exported garments worth an average of €1.87 billion per month between January and June 2025.

This monthly average jumped to €2.82 billion between July and September, bringing China’s total exports to €19.76 billion in the first nine months of 2025. During the same period in 2024, EU garment imports from China amounted to €17.99 billion.

In contrast, Bangladesh’s average monthly exports stood at €1.71 billion during January–June 2025.

Between July and September, shipments averaged €1.64 billion per month.

Bangladesh began the year strongly, earning €1.91 billion in January and reaching its highest monthly performance of €2.11 billion in March.

Export earnings have since trended downward, with the exception of July and September.

Overall, Bangladesh fetched €15.25 billion during January–September 2025, recording year-on-year growth of 13.17 per cent from €13.47 billion in the same period of 2024.

However, no single month in the latter half of the period matched the peak achieved in March.

Exporters and analysts said the diversion of shipments from the US to alternative markets—including Japan, Canada and primarily the EU—is reshaping competitive dynamics.

With Bangladesh holding more than a 20 per cent share of the EU apparel market, the influx of diverted supplies risks intensifying price competition and squeezing manufacturers’ already thin margins, they warned.

Fazlul Hoque, former president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said the latest data indicated that Bangladesh’s competitiveness gap with China was widening.

He said that China remained far more competitive due to factors such as efficient ports, stable energy supplies and the absence of political uncertainty. By contrast, he observed that Bangladesh continued to struggle with low productivity, long lead times and higher production costs.

Despite comparatively high wages, China is able to respond quickly to global market disruptions such as the US tariff regime, thanks to its strong supply chain ecosystem, availability of raw materials, and uninterrupted production, Hoque observed.

He said that China increased its monthly shipments to the EU by around €1.0 billion on average over the last three months, while Bangladesh’s shipments declined during the same period.

Chinese exporters, he added, are entering the EU market ‘aggressively by lowering prices significantly’.

EU apparel imports rose by 7.14 per cent in value to €68.46 billion and by 13.80 per cent in volume to 3.54 billion kilograms during January–September 2025.

Average unit prices dropped by 5.86 per cent compared with the same period in 2024, reflecting buyers’ heightened cost sensitivity.

Pakistan earned €2.90 billion during the period, up 13.77 per cent year-on-year, driven by a 15.90 per cent rise in shipment volumes and a 1.83 per cent reduction in unit prices.

Cambodia posted particularly strong gains, with exports surging to €3.37 billion—an increase of 22.51 per cent in value and 39.65 per cent in volume.

Unit prices for Cambodian garments fell by 12.27 per cent, signalling a deliberate strategic push into the EU amid weaker demand conditions in the US.

Vietnam, meanwhile, recorded a 2.65 per cent rise in unit prices, which industry analysts attribute to its continued focus on higher-value apparel categories.