Bangladesh weathers US apparel import downturn better than peers
Tariff advantage cushions exports amid weaker US demand.
Bangladesh's apparel exports to the US declined in January-August 2026, but the rate was less than those of several major Asian competitors as overall US clothing imports contracted amid higher prices.
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 the US Department of Commerce's Office of Textiles and Apparel (Otexa).
Shipments from China and India fell 29.39% and 26.44%, respectively, while Pakistan declined 3.83% and Vietnam 0.76%. Imports from Cambodia and Indonesia, meanwhile, rose 6.91% and 2.58%.
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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 encouraging 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 TBS.
He said export orders were gradually returning, indicating an improving trend.
Tariff advantage supports Bangladesh
Mohiuddin Rubel, former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), attributed Bangladesh's relatively resilient performance partly to its favourable tariff position compared with major competitors such as China.
"Compared with our competitors, our tariff structure is better. Naturally, buyers will want to take advantage of that," he said.
However, Bangladesh needs to move into higher-value apparel and expand man-made fibre production to strengthen its position, he added.
Shovon Islam, managing director of Sparrow Group, said Bangladesh's tariff structure and diversified product range were helping it compete with India and Pakistan, while lead times and raw material availability remained key weaknesses.
Bangladesh is performing better than India and Pakistan and roughly on par with Indonesia and Cambodia, but remains behind Vietnam, he said.
Vietnam benefits from shorter lead times and a stronger position in higher-value athletic and performance apparel made from man-made fibres, he added.
Product diversification key to bigger gains
Otexa data show Bangladesh's apparel import volume fell 2.75% in square-metre equivalent terms during January-August, while its average unit price declined 1.73%.
China and India recorded much steeper volume declines of 21.61% and 24.91%, respectively. Vietnam's volume fell 0.18% and Pakistan's 0.27%, while Cambodia and Indonesia posted growth of 7.18% and 8.53%.
Bangladesh's average unit price decline was smaller than China's 9.93% and India's 2.04%, but the overall average unit price of US apparel imports rose 1.71%.
Shovon said Bangladesh needs to expand higher-value and man-made fibre production to capture more of the shifting US demand.
He said Chinese manufacturers were increasingly diversifying production towards Vietnam and Cambodia as their access to the US market weakened, creating an opportunity for Bangladesh to attract investment.
Chinese investors remain interested in Bangladesh, but concerns over the political and policy environment, bank financing, energy supply and law and order have slowed investment, he said.
Bangladesh had previously attracted around 250 Chinese investors, mainly in garments and textiles, but the momentum has weakened since 2024, Shovon added.
August rebound offers relief
Bangladesh's RMG exports to the US surged 25.65% year-on-year to more than $817 million in August, 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.
The August rebound is a positive signal after a weak first half, but sustaining the momentum will depend on converting Bangladesh's tariff advantage into longer-term sourcing gains, Shovon observed.
With Vietnam remaining resilient and Cambodia and Indonesia expanding, Bangladesh is holding its ground in the US market. However, gaining a larger share will require improvements in competitiveness beyond tariffs, including shorter lead times, greater product diversification and stronger man-made fibre capacity.
