Bangladesh’s cotton imports from the United States have declined for two consecutive years, mainly due to higher costs and longer lead times compared to Indian cotton, despite the superior quality and lower wastage of US cotton. In 2024, imports from the US fell to $252 million, down 25.5% from 2023, which itself had dropped from $469 million in 2022 to $337 million.
The textile and garment sector, which contributes over 80% of Bangladesh’s export earnings, relies heavily on imported cotton, with the US supplying around 12%. Industry leaders cite that Indian cotton is cheaper and faster to import, though less efficient in quality. Spinners also note that local knitwear manufacturers prefer cheaper options, often favoring Indian cotton despite higher wastage.
Color preferences also influence demand; US cotton, ideal for white garments, may have seen reduced demand due to changing fashion trends. Additionally, foreign currency shortages and a reduction in the Export Development Fund have made it harder for mills to finance long lead-time imports like US cotton.
To counter the impact of the new 37% US tariffs on Bangladeshi exports—imposed under Trump’s “reciprocal tariffs” policy—industry leaders propose increasing the use of US cotton. Suggestions include duty exemptions for garments made from US cotton and establishing regional cotton warehouses to reduce lead time and costs. Experts believe such measures could boost the share of US cotton in imports to 60%, helping balance trade relations and mitigate tariff-related challenges.
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