Bangladesh Stays Ahead Of China In US Apparel Race Despite Export Dip
Bangladesh has retained its position as the second-largest apparel supplier to the US market during January-July 2026, overtaking China as American apparel imports declined amid weaker consumer demand.
According to the latest data from the Office of Textiles and Apparel (OTEXA) under the US Department of Commerce, Bangladesh’s apparel shipments to the US stood at US$ 4.66 billion during the first seven months of 2026. The country first moved ahead of China in January-February this year, following higher US tariffs on Chinese garment imports.
However, Bangladesh’s apparel exports to the US declined 6.50% year-on-year during January-July. In July alone, shipments fell 10.73%, indicating that the country’s gain in ranking has come largely from a sharper decline in Chinese supplies rather than growth in its own exports.
China’s apparel shipments to the US fell 34.21% to US$ 4.55 billion during the period. The sharp decline enabled Bangladesh to maintain its second position despite its own contraction.
Vietnam remained the largest apparel supplier to the US, with shipments worth $9.36 billion during January-July, although its exports declined 1.03% year-on-year. Indonesia’s shipments rose 2.76% to US$ 2.74 billion, while Cambodia recorded a 10.48% increase to US$ 2.62 billion.
India’s apparel exports to the US declined 25.77% to US$ 2.45 billion, while Pakistan’s shipments fell 5.60% to US$ 1.26 billion.
The overall US apparel import market also remained under pressure. Imports during January-July stood at US$ 41.83 billion, down 8.65% from the year-ago period, pointing to weaker demand and more cautious purchasing by American retailers and consumers.
In volume terms, Bangladesh’s apparel shipments declined 4.34% during the period, compared with a 24.17% fall for China and a 24.02% decline for India. The relatively smaller fall in Bangladesh’s shipment volumes helped it retain its position ahead of China.
Unit prices also showed varying trends across sourcing destinations. Vietnam, Indonesia and Cambodia recorded increases, while China saw the sharpest decline of 13.24%. Bangladesh’s average unit price fell 2.26%, indicating comparatively moderate price pressure.
The latest figures highlight the continuing shift in US apparel sourcing amid changes in tariff policies and efforts by retailers to diversify supply chains. Bangladesh’s established manufacturing base, large-scale production capacity and investments in compliance and sustainability have strengthened its position among major global apparel suppliers.
For Bangladesh’s apparel industry, which accounts for around US$ 47 billion in exports, maintaining the second position in the US market provides an important boost. At the same time, the decline in export value highlights the challenges facing manufacturers as demand remains subdued.
Industry priorities include improving energy availability, expanding into non-cotton and higher-value apparel categories, and reducing lead times. These factors will be important as Bangladesh competes with Vietnam, Indonesia and Cambodia for a larger share of global apparel sourcing.
The latest OTEXA data therefore presents a mixed picture for Bangladesh: its relative position in the US market has strengthened, but its export value and volumes remain under pressure as the overall American apparel market contracts.
