Bangladesh, Pakistan, Indonesia leverage US cotton imports to ease tariff pressure

Bangladesh, Pakistan, and Indonesia are increasingly using American cotton to leverage in talks to ease high US tariffs on clothing imports. With Bangladesh facing a steep 37 per cent duty on apparel up from 10 per cent its textile industry, led by the Bangladesh Textile Mills Association (BTMA), is in direct talks with US officials. In 2024, the country imported $270 million worth of US cotton, making it the fifth-largest buyer, and aims to raise that volume four- to fivefold.

Pakistan, the fifth-largest cotton producer globally, is also boosting US cotton and oil imports to seek tariff exemptions. The country exported $2.1 billion in apparel to the US in 2024 but fears being sidelined as India and Vietnam attract more US buyers.

Indonesia, which shipped $4.2 billion in apparel to the US in 2024, is considering shifting cotton sourcing from Brazil and Australia to the US as part of its broader diplomatic strategy.

However, limited US cotton supply and China’s dominant 18.4 per cent share in American cotton exports pose hurdles. With multiple countries vying for access, competition may intensify, reshaping sourcing dynamics and trade diplomacy across Asia.