Bangladesh Overtakes China Again in US Apparel Exports Despite Volume Drop

👕 Dhaka, Bangladesh — Bangladesh has once again overtaken China to retain its position as the second-largest apparel supplier to the United States market during the January-July period of 2026, even as overall US apparel imports contracted sharply on the back of softer American consumer demand.

📊 According to the latest data released by the Office of Textiles and Apparel (OTEXA) under the US Department of Commerce, Bangladesh’s garment shipments to the American market reached $4.66 billion during the first seven months of 2026, retaining the second position it had first claimed in January-February this year when the Trump administration imposed higher tariffs on imports of Chinese garment items.

⚠ The achievement, however, comes with a caveat: Bangladesh’s own garment exports to the US fell 6.50 percent year-on-year during the January-July period, reflecting weaker demand for locally made apparel in the American market. In July 2026 alone, the country’s garment exports to the US dropped 10.73 percent, mirroring a broader pullback in US apparel imports.

🌏 China Slumps Sharply, Rivals Mixed

China’s apparel shipments to the US plunged 34.21 percent year-on-year to $4.55 billion during the period — the steepest fall among the top sourcing countries — allowing Bangladesh to extend its lead despite its own decline. The reversal underlines how US tariff policy is reshaping global apparel sourcing flows away from Beijing.

Among other competing sourcing destinations, the OTEXA data showed:

• 🇮🇳 Indonesia: gained 2.76 percent to $2.74 billion
• 🇰🇭 Cambodia: rose 10.48 percent to $2.62 billion
• 🇻🇳 Vietnam: slipped marginally by 1.03 percent to $9.36 billion
• 🇮🇳 India: dropped 25.77 percent to $2.45 billion
• 🇵🇰 Pakistan: declined 5.60 percent to $1.26 billion

💰 Overall US apparel imports during January-July 2026 totalled $41.83 billion, contracting 8.65 percent year-on-year, signalling that American consumers and retailers are tightening their apparel purchasing.

👥 Volume vs Value: Mixed Picture

When measured by piece count rather than dollar value, Bangladesh, China and India’s apparel exports to the US fell by 4.34 percent, 24.17 percent and 24.02 percent respectively, showing that China and India suffered much steeper volume losses than Bangladesh.

📊 Interestingly, unit prices increased to some extent for Vietnam, Indonesia and Cambodia, indicating these countries are successfully moving up the value chain. In contrast, unit prices fell across the board, led by China at 13.24 percent. Bangladesh saw a moderate price erosion of 2.26 percent, suggesting relative pricing stability compared with Chinese competitors.

🏛 Strategic Context: Tariff-Driven Reshuffling

🤝 The shift in sourcing patterns reflects the cascading impact of US trade policy. The Trump administration’s higher tariffs on Chinese garment imports have triggered a structural realignment of US apparel sourcing, with Bangladesh emerging as a primary beneficiary despite its own volume challenges.

📈 For Bangladesh’s $47 billion apparel export sector, retaining the second position in the world’s largest single-country apparel market is a significant morale boost at a time when the industry faces headwinds from gas shortages, working capital stress, and concerns about possible LDC graduation-driven tariff losses in the EU and UK markets.

✅ Industry leaders view the OTEXA data as evidence that the strategic investments made by Bangladeshi manufacturers in compliance, sustainability and capacity expansion over the past decade are beginning to pay off in terms of market share gains over regional rivals.

🌏 However, the 6.50 percent decline in dollar terms is a reminder that Bangladesh cannot be complacent. To consolidate its position and grow absolute volumes, the country must address structural bottlenecks including energy supply to factories, diversification into non-cotton and high-value segments, and faster lead times to compete with Vietnam and Cambodia in the higher-value categories.

💰 The data also underscores that while the US apparel market is contracting, the rebalancing toward Bangladesh, Vietnam, Indonesia and Cambodia signals a durable shift away from China-dependent supply chains — a trend Bangladeshi exporters can leverage for years to come if policy and infrastructure support keeps pace.