US apparel imports from Bangladesh declined less sharply than those from several major Asian competitors in January-August 2026, even as the country’s largest export market recorded a broad contraction in clothing imports.
US apparel imports fell 7.42% year-on-year to $49.08 billion in the first eight months of 2026, while imports from Bangladesh declined 4.43% to $5.39 billion, according to data from the US Department of Commerce’s Office of Textiles and Apparel (OTEXA).
Bangladesh’s decline was smaller than those of China and India, whose shipments to the US fell 29.39% and 26.44%, respectively. Pakistan declined 3.83% and Vietnam 0.76%.
Meanwhile, US apparel imports from Cambodia and Indonesia rose 6.91% and 2.58%, respectively.
Fazlul Hoque, administrator of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and former president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said Bangladesh’s smaller decline was a positive sign amid the broader market contraction.
“US imports have been affected as the prices of goods have increased. In that context, the positive aspect is that our decline is smaller than that of our competitors,” he told The Business Standard.
He said Bangladesh’s export performance was showing signs of improvement, with orders gradually returning.
“We are moving towards a positive direction,” he said.
Tariff advantage supports Bangladesh
Mohiuddin Rubel, former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said Bangladesh’s comparatively favourable tariff position was supporting its performance in the US market.
He said the tariff differential with competitors such as China could influence buyers’ sourcing decisions.
“Compared with our competitors, our tariff structure is better. Naturally, buyers will want to take advantage of that,” he said.
Rubel said Bangladesh could improve further by moving into higher-value apparel and expanding production of man-made fibre garments.
Shovon Islam, managing director of Sparrow Group, said Bangladesh’s tariff structure and diversified product exports were helping it compete with India and Pakistan.
“Here, our advantage is the tariff structure, while our disadvantages are lead time and raw materials,” he said.
Bangladesh is performing better than India and Pakistan and is roughly on par with Indonesia and Cambodia, but remains behind Vietnam, Islam said.
Vietnam has an advantage in lead times and higher-value athletic and performance apparel made from man-made fibres, which are increasingly popular in the US market, he said.
Product diversification key to bigger gains
OTEXA data show Bangladesh’s apparel import volume fell 2.75% in square metres equivalent (SME) during January-August, while its average unit price declined 1.73%.
By comparison, import volumes from China and India fell 21.61% and 24.91%, respectively. Vietnam’s volume declined 0.18% and Pakistan’s 0.27%, while Cambodia and Indonesia recorded growth of 7.18% and 8.53%.
Bangladesh’s average unit price fell 1.73%, compared with declines of 0.58% for Vietnam, 9.93% for China and 2.04% for India. Unit prices also fell for Pakistan, Indonesia and Cambodia.
The overall average unit price of US apparel imports, however, rose 1.71%, even as prices from the major Asian suppliers declined.
Islam said Bangladesh needs to expand higher-value and man-made fibre production to capture more of the shifting US demand.
He said China’s declining position in the US market was prompting Chinese manufacturers to diversify production towards Vietnam and Cambodia, while Bangladesh also has an opportunity to attract such investment.
Chinese investors remain interested in Bangladesh, he said, but concerns over the political and policy environment, bank credit, energy supply and law and order have weakened investment momentum.
Bangladesh had previously attracted around 250 Chinese investors, mostly in garments and textiles, but that momentum has slowed since 2024, Islam said.
August rebound offers relief
Despite the cumulative decline, Bangladesh’s RMG exports to the US surged 25.65% year-on-year in August to more than $817 million, according to Bangladesh Export Promotion Bureau data compiled by Bangladesh Apparel Voice.
Exports to the US totalled $1.61 billion in July-August, up 11.42% year-on-year, according to the same data.
The rebound offers a positive signal after a difficult first half, but sustaining the momentum will depend on Bangladesh converting its tariff advantage into longer-term sourcing gains, Islam said.
With Vietnam remaining comparatively resilient and Cambodia and Indonesia expanding, Bangladesh is holding its ground in the US market — but gaining a larger share will require improvements in competitiveness beyond its tariff advantage.
Source: https://www.tbsnews.net/economy/bangladesh-outperforms-rivals-us-apparel-imports-fall-scope-gains-remains-1565601
