Bangladesh held onto its position as the second-largest apparel supplier to the United States through July, even as a deepening slump in American demand dragged overall imports down and rival China suffered the steepest losses among major shipping nations, according to data from the U.S. Office of Textiles and Apparel (OTEXA).
Total U.S. apparel imports fell 8.65% year-on-year to $41.83 billion during January-July 2026, down from $45.80 billion a year earlier, OTEXA figures compiled by Bangladesh Apparel Voice showed. Import volume dropped 9.41% to 13.20 billion square metre equivalents (SME) from 14.57 billion, while the average unit price rose 0.84% to $3.17 per SME.
Bangladesh shipped $4.66 billion worth of garments to the U.S. over the seven-month period, a 6.50% decline from $4.98 billion a year earlier, a smaller contraction than the broader market. Shipment volume slipped 4.34% to 1.53 billion SME from 1.60 billion SME, though average prices eased 2.26%. The resilience masked a weaker July, when Bangladeshi exports fell 10.73% year-on-year, signaling pressure on near-term momentum.
Also Read: NBR Scraps Duty-Free Bond on 60% of BD Yarn Imports
China recorded the sharpest slide among top suppliers, with shipments plunging 34.21% to $4.56 billion from $6.92 billion, leaving Bangladesh narrowly ahead in the race for second place behind Vietnam. Vietnam retained the top spot, exporting $9.36 billion worth of apparel, down a marginal 1.03% from a year earlier.
Indonesia and Cambodia emerged among the biggest beneficiaries of the sourcing shift away from China, posting export growth of 2.74% to $2.73 billion and a similar increase to $2.62 billion, respectively. India’s shipments tumbled 25.75% to $2.45 billion, while Pakistan’s exports fell 5.60% to $1.26 billion.
The figures come as Bangladesh’s garment sector, the country’s largest export earner, contends with elevated energy costs and a stringent U.S. Section 301 review of forced-labor risks in cotton sourcing. Industry groups including BGMEA point to compliance credentials, including a growing number of LEED-certified factories, as a competitive edge in retaining orders despite reciprocal tariffs raising landed costs.
The two countries’ February agreement on reciprocal trade set a 19% U.S. tariff on most Bangladeshi imports, alongside a mechanism allowing specified volumes of textile and apparel products linked to U.S. inputs to qualify for a zero tariff rate. Bangladeshi officials have cited the arrangement as central to sustaining competitiveness against regional rivals. With Vietnam, Cambodia and Indonesia still absorbing business diverted from China, sourcing executives say the coming months will test whether Bangladesh’s second-place ranking holds into the holiday ordering season.