Woven garment exports slightly outpaced knitted garment exports in terms of growth. Knitwear exports (Chapter **) rose by *.** per cent to $*.*** billion, compared to $*.*** billion in the same period of fiscal ****–**. Woven apparel exports (Chapter **) increased by **.** per cent to $*.*** billion, up from $*.*** billion in July–August ****, EPB data showed.

Home textile exports (Chapter **, excluding ******) also grew, rising by **.** per cent to $***.** million, compared to $***.** million in the same period of the previous fiscal. Collectively, exports of woven and knitted apparel, clothing accessories, and home textiles accounted for **.** per cent of Bangladesh’s total exports, which stood at $*.*** billion during the period.

Volatility in the US-China trade relationship has dragged optimism in the business environment, headquarter prioritisation of the China market and future revenue expectations to record lows, according to the American Chamber of Commerce (AmCham) Shanghai’s 2025 China Business Report.

However, China’s efforts to demonstrate its continued openness to global business have yielded significant improvements in metrics related to the regulatory environment, it noted.

Seventy-one per cent of respondents were profitable in 2024, an improvement from 2023’s record low of 66 per cent. Profitability varied widely by sector; 80 per cent of manufacturers and 69 per cent of retailers were profitable.

Volatility in US-China trade ties has dragged optimism in the business environment, headquarter prioritisation of the China market and future revenue expectations to record lows, a survey by AmCham Shanghai found.
Just 45 per cent of respondents expect revenue to rise in 2025.
Forty-one per cent of them are optimistic about the five-year business outlook, with the rate lowest for manufacturers.

Fifty-seven per cent of respondents saw higher revenue in 2024 than in 2023, up from 50 per cent in the previous survey.

Sixty-four per cent of companies expect new US-China tariffs to drag on their 2025 revenue performance. As a result, just 45 per cent anticipate revenue to increase this year. This would be a record low if realised.

For the fourth consecutive year, the rate of respondents optimistic about the five-year business outlook in China hit another historic low. Now, 41 per cent of respondents express any optimism, with the rate lowest for manufacturers (36 per cent) and highest for retailers (51 per cent).

Twelve per cent of respondents ranked China as their headquarters’ top investment destination, also the lowest in the survey’s history.

Forty-eight per cent of respondents said that the regulatory environment was transparent, a 13-percentage point (pp) jump from last year. When asked about obstacles from regulatory challenges, members reported less hindrance across all options.

Over a third of respondents say that Chinese government policies and regulations toward foreign companies have improved in the past few years, 4 pp higher than 2024. Accordingly, 41 per cent say they are confident in China opening up further, a jump from 22 per cent last year.

Members continued to rank the US-China relationship or geopolitical tensions more broadly as the biggest challenge to their China operations and to China’s economic growth. Trade turbulence is weighing on willingness to invest in China and leading firms to double down on risk mitigation strategies, a release from the chamber said.

Forty-eight per cent of respondents urged the US government to completely remove all tariffs and non-tariff barriers on Chinese goods. Another 33 per cent want the removal of April’s reciprocal tariffs and other additional tariffs like the 20-per cent fentanyl tariff.

Members also oppose retaliatory duties, with 42 per cent calling on the Chinese government to remove all tariffs and non-tariff barriers on US imports and an additional 34 per cent hoping for a return to the most favoured nation rate.

If the US revokes China’s Permanent Normal Trade Relations status, 69 per cent of members anticipate negative effects. Companies in the manufacturing sector would bear the brunt, with 78 per cent expecting adverse effects compared to 59 per cent for retail.

Twenty-three per cent increased investments while a record-high 26 per cent cut investments in China. This year, 22 per cent are expecting to raise their China investments and 25 per cent will reduce that.

More companies are limiting their investment exposure to China in response to the changing geopolitical and economic situation; only 39 per cent will not have any China investment limits, down from 45 per cent last year and 50 per cent in 2023.

Companies are shock-proofing supply chains and bifurcating US and non-US strategies in response to global trade tensions. Of those with supply chains, nearly half are making significant adjustments in response to recent tariffs by shifting the sources of US-bound products or building in redundancy.

In the past year, 47 per cent of companies have redirected planned investments away from China, the highest level since this question was first asked in 2017. Southeast Asia remains the top destination for rerouted investment as well as for operations that are moved out of China.

Fibre2Fashion News Desk (DS)

In the baseline scenario where all current US tariffs are maintained in perpetuity, US consumers face an overall average effective tariff rate of 17.4 per cent, the highest since 1935, according to research by The Budget Lab (TBL) at Yale University.

On the other hand, under the invalidation of International Emergency Economic Powers Act (IEEPA) tariffs, consumers face an overall average effective tariff rate of 6.8 per cent, the highest since 1969. After consumption shifts, the average tariff rate will still be 6.8 per cent.

In the baseline scenario, consumers face particularly high increases in leather and clothing in the short-run: prices increase by 37.3 per cent for leather products (shoes and hand bags), 36.2 per cent for apparel and 22 per cent for textiles. After substitution and global supply shifts in the long-run, prices remain 13.2 per cent, 12.8 per cent and 8.2 per cent higher respectively for the three sectors. 

In the baseline scenario where all current US tariffs are maintained in perpetuity, US consumers face an overall average effective tariff rate of 17.4 per cent, the highest since 1935, The Budget Lab at Yale University said.
Under this scenario, prices increase by 37.3 per cent for leather products, 36.2 per cent for apparel and 22 per cent for textiles in the short-run.

In the baseline scenario, all tariffs till now this year are expected to raise $2.4 trillion between 2026 and 2035. Under the invalidation of IEEPA tariffs, $704 billion is raised over the same time horizon.

In the baseline scenario, the price level from all 2025 tariffs rises by 1.7 per cent, equivalent of an average per household income loss of $2,300 in 2025 US dollars. Under the invalidation of IEEPA tariffs, the price level rises by 0.5 per cent, equivalent of an average per household income loss of $700.

In the baseline scenario, US real gross domestic product (GDP) growth over 2025 and 2026 is minus 0.5 percentage point (pp) lower each year from all 2025 tariffs. In the long-run, the US economy is persistently minus 0.4 per cent smaller, the equivalent of $120 billion annually in 2024 dollar.

Under the invalidation of the IEEPA tariffs, US real GDP growth over 2025 and 2026 is minus 0.5 pp lower each year from all 2025 tariffs. In the long-run, the US economy is persistently minus 0.1 per cent smaller, the equivalent of $25 billion annually in 2024 dollar, a TBL release said.

In the baseline scenario, the unemployment rate is projected to rise by 0.28 pp by the end of 2025 and 0.65 pp by the end of 2026. Payroll employment is 480,000 lower by the end of 2025.

Under the invalidation of the IEEPA tariffs, the unemployment rate rises by 0.3 pp by the end of 2025 and 0.5 pp by the end of 2026. Payroll employment is 480,000 lower by the end of 2025.

Fibre2Fashion News Desk (DS)