Bangladesh has once again overtaken China in apparel exports to the United States, reinforcing its emergence as one of the world’s most important sourcing destinations as global brands continue shifting supply chains away from China amid trade tensions, tariffs and evolving sourcing strategies.
According to the latest data from the Office of Textiles and Apparel (OTEXA), Bangladesh exported apparel worth $2.04 billion to the US market during the January-March period of 2026, while China’s exports dropped sharply to $1.70 billion during the same period.
The development marks another major milestone for Bangladesh’s ready-made garment (RMG) industry, which has steadily expanded its footprint in the US market over recent years as international retailers and fashion brands diversify sourcing beyond China.
The OTEXA figures highlighted a significant transformation in the global apparel trade landscape. Although Bangladesh’s apparel exports to the United States declined by 8.38% year-on-year during the first quarter amid weaker global demand, the country remained considerably more resilient than China, whose exports plunged by 52.91% during the same period.
Industry analysts said the dramatic decline in Chinese exports reflects the prolonged impact of the US-China trade conflict, reciprocal tariffs, rising geopolitical tensions and the accelerated supply-chain diversification strategies adopted by global brands following the pandemic era.
Overall US apparel imports also weakened during the first three months of 2026. OTEXA data showed total US apparel imports fell to $17.73 billion, down 11.63% from the same period of 2025. Import volume, measured in square meter equivalents (SME), declined by 12.28%, while the average unit price increased marginally by 0.75%.
Economists and sourcing specialists attributed the slowdown to persistent inflationary pressure, cautious consumer spending, elevated retail inventory levels and broader global economic uncertainty affecting apparel demand in the world’s largest clothing import market.
Despite the difficult market conditions, Bangladesh managed to maintain a comparatively stable position, signaling continued confidence among global buyers in the country’s manufacturing capabilities.
Industry insiders said Bangladesh’s competitiveness continues to be driven by its large-scale production capacity, skilled workforce and strong specialization in knitwear and denim products. Increasingly, buyers are viewing Bangladesh not merely as a low-cost alternative but as a long-term strategic sourcing destination.
Former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Mohiuddin Rubel, said the first quarter of 2026 reflected a major slowdown in global apparel imports into the US market, but Bangladesh maintained a relatively stable position despite the challenging environment.
He noted that the steep decline in China’s exports is reshaping the global sourcing landscape and creating new opportunities for competing apparel manufacturing nations.
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Rubel also pointed out that while countries such as Vietnam and Cambodia posted positive growth during the period, exporters from India, Pakistan and Indonesia faced pressure from weakening demand and intense pricing competition.
Vietnam remained the largest apparel exporter to the United States during the January-March period, shipping garments worth nearly $3.98 billion, up 2.77% from a year earlier. The country currently controls around 22% of the US apparel import market, while Bangladesh holds approximately 11.5%.
Among other sourcing countries, Cambodia emerged as one of the strongest performers, registering export growth of 17.60% during the period. Indonesia’s exports remained nearly flat with a marginal decline of 0.13%, while Pakistan recorded a 5.48% decline. India experienced one of the sharpest contractions among major sourcing nations, with exports dropping by 27.01% to around $1.10 billion.
Shipment volume data further reflected shifting sourcing dynamics. Bangladesh’s export volume to the US market declined by 5.97%, compared with a 4.87% increase for Vietnam and an 18.07% surge for Cambodia. Indonesia recorded an 8.57% increase in shipment volume despite lower export value, indicating aggressive price competition among suppliers.
China experienced one of the steepest contractions in both shipment volume and pricing. OTEXA figures showed China’s apparel import volume into the US market fell by 40.15% during the period, while its average unit price declined by 21.33%.
The data also highlighted mounting pricing pressure across the global apparel industry. Bangladesh’s average unit price declined by 2.56%, suggesting exporters had to accept lower prices to retain orders in an increasingly competitive and shrinking market.
Similar pricing declines were recorded among other exporting nations. Vietnam’s average unit price fell by 2%, India’s by 5.65%, Pakistan’s by 4.44% and Indonesia’s by 8.02%, while Cambodia experienced only a marginal 0.40% decline.
Manufacturers said global brands continue demanding lower prices and shorter lead times despite rising operational expenses linked to energy, logistics, raw materials and wage adjustments. As a result, many factories are operating under tighter profit margins to secure export orders.
Industry stakeholders warned that the next phase of global competition will depend not only on price competitiveness but also on efficiency, lead time, product diversification and supply-chain reliability.
They stressed the need for Bangladesh to accelerate investment in man-made fibre apparel, modernize logistics infrastructure, improve port efficiency and strengthen energy services to sustain long-term growth in the global market.
Analysts believe the ongoing geopolitical and trade realignment is opening a strategic window for Bangladesh to deepen its position in the US apparel market. As sourcing patterns continue shifting away from China, Bangladesh is increasingly emerging not simply as an alternative manufacturing hub but as one of the leading long-term suppliers for global fashion retailers.
The development comes at a time when Bangladesh’s apparel sector is striving to move up the value chain through sustainability initiatives, green factory investments and higher-end product development. Industry observers said the country’s ability to capitalize on the current transformation in global sourcing patterns could significantly shape its future standing in the global textile and apparel industry
