The United States has overtaken India as Bangladesh's second-largest trading partner in January, driven by a surge in imports from the world's largest economy.
While China continues to dominate Bangladesh's trade landscape, the shift highlights changing import patterns and growing economic ties with the US, though analysts say the trend may not yet be firmly established.
India consistently holding the position of the second-largest trading partner. However, in January, the US moved ahead of India, pushing it into third place.
It remains unclear whether this shift will be sustained, as trade volumes between the US and India remain closely matched.
During the month under review, the US accounted for 9.28 per cent of Bangladesh's total trade, compared with India's 7.91 per cent. China retained its position as the largest trading partner, with a market share of 17.82 per cent.
In value terms, total trade with the USA stood at Tk 146.86 billion, or approximately $1.2 billion, while India recorded Tk 125.08 billion, or $1.02 billion. China's trade volume reached Tk 281.94 billion, or $2.3 billion, during the period. (Exchange rate: US$ 1.0 = Tk 122.97)
Zaidi Sattar, chairman of the Policy Research Institute of Bangladesh (PRI), recently told the FE that rising imports from the US are reshaping the country's trade balance.
"In my view, imports from the US are increasing steadily," he said.
He added that growing purchases of liquefied petroleum gas (LPG) and other commodities are driving the trend. Bangladesh also has scope to expand imports further, particularly in the energy and cotton sectors.
Dr Sattar highlighted a new US cotton policy introduced in 2025 that could affect Bangladesh's export-oriented garment industry.
Under the policy, countries using US-origin cotton in manufacturing would qualify for zero-tariff access when exporting finished goods to the US market.
"If Bangladesh imports cotton worth $1.0 billion from the US, it could secure duty-free export opportunities of an equivalent value," he said.
He added that US cotton is machine-picked, unlike Indian and Pakistani cotton, which is largely
hand-picked.
Masrur Reaz, chairman and CEO of Policy Exchange Bangladesh, said the trend is encouraging for Bangladesh, as it indicates deepening trade ties with a Western economy.
He also noted that it reflects a gradual diversification of Bangladesh's import sources.
However, he underscored the need to tap trade benefits from South Asian economies, particularly Pakistan, India and Sri Lanka.
jasimharoon@yahoo.com
© 2026 - All Rights with The Financial Express
