American buyers are increasingly switching to Bangladesh for sourcing travel goods in a trade redirection driven by high US tariffs and rising production costs in China, exporters say.
The rebound has already begun to be conspicuous in export earnings with Bangladesh's shipments of luggage, handbags, sports bags and purses to the United States having surged by over 23 per cent year on year in the first seven months of 2025.
Notwithstanding the momentum, industry-insiders alert, Bangladesh has yet to capture its potential share in the market due to structural bottlenecks, such as long lead times in shipment and dependence on imported raw materials.
Yet, exporters remain optimistic as global demand continues to rise, and more buyers are diversifying supply chains away from China.
Bangladesh earned US$60.99 million from travel-goods exports to the US between January and July 2025, up from $49.44 million in the same period of 2024, according to data from the US Department of Commerce's Office of Textiles and Apparel (OTEXA).
Among all product categories, man-made fibre (MMF) backpacks posted the strongest growth during the period, rising by 73.91 per cent to $6.98 compared to $4.01 million a year earlier.
Exporters have said global demand for travel goods, particularly in the US, has been on the rise, and Bangladesh enjoys a comparative advantage on tariffs and costs over China.
However, they added, the country has been unable to fully exploit the opportunity due to constraints that include long lead times and the absence of a domestic raw-material base.
Bangladesh's exports of travel goods to the US fetched $90.59 million in 2024, more than double the $43.47 million earned in 2020, OTEXA figures show.
Over the January-July 2025 period, total US imports of travel goods reached $6.42 billion, compared with $6.20 billion in the same months of 2024.
Speaking to The Financial Express, Anisur Rahman, Executive Director of RFL Footwear, said demand for Bangladesh-made travel goods has been rising steadily as the country offers competitive labour costs alongside tariff benefits.
China finally bears a high-rated tariff of above 30 per cent following what is termed trade spat between the two economic superpowers, while Bangladesh finally gets its US rates pared down to 20 per cent following negotiated tradeoffs.
"High US tariffs on China and the rising cost of production there have prompted many American buyers to shift orders to Bangladesh," he said. "Initially, we received these orders through Chinese traders, but now more direct orders are coming as local exporters gain expertise."
Mr Rahman notes that while Chinese intermediaries still take a share of the profits, local exporters are benefiting as their capacity expands. He also points out that China, Vietnam and Cambodia remain the leading suppliers of travel goods globally. With a monthly production capacity of around 60,000 travel bags, including women's handbags, RFL also exports to Japan, South Korea and the European Union.
Exporters caution, however, that Bangladesh's growth potential remains stymied by structural challenges. The reliance on imported raw materials, largely from China, raises costs and slows production, undercutting competitiveness.
The US trade data show that imports of travel goods from China fell more than 21 per cent to $1.12 billion in the first seven months of 2025, from $1.43 billion in the same period of 2024.
By contrast, shipments from Vietnam grew by 22.7 per cent to $766.44 million, while imports from Cambodia rose by 18.19 per cent to $1.06 billion. Imports from India also climbed 12.54 per cent to $258.18 million.
Munni_fe@yahoo.com