US apparel imports are weakening overall, and Bangladesh's decline in its largest export market is notably smaller than those of China and India. From January to August 2026, US apparel imports fell 7.42% year-on-year to $49.08 billion, while imports from Bangladesh dropped 4.43% to $5.39 billion over the same period. Industry executives believe a relative tariff advantage has provided some cushion, but capturing a larger share of shifting US demand still depends on product mix upgrading, the investment environment, and supply chain performance.

Key Points

  • From January to August 2026, US apparel imports totaled $49.08 billion, down 7.42% year-on-year; imports from Bangladesh reached $5.39 billion, down only 4.43%.
  • Over the same period, China's exports to the US fell 29.39%, India's dropped 26.44%, Pakistan's declined 3.83%, and Vietnam's slipped 0.76%, while Cambodia and Indonesia grew 6.91% and 2.58% respectively.
  • In August 2026, Bangladesh's apparel exports to the US surged 25.65% year-on-year to over $817 million, signaling potential for share recovery.

These figures come from the US Department of Commerce's Office of Textiles and Apparel, as reported by The Business Standard. Comparing supplier performance, Bangladesh's decline was smaller than China's and India's, but Pakistan and Vietnam posted even smaller drops, while Cambodia and Indonesia maintained positive growth.

Fazlul Hoque, a director of the Bangladesh Chamber of Industries and former president of the Bangladesh Knitwear Manufacturers and Exporters Association, said that narrowing the decline amid an overall market downturn is a positive signal. Mohiuddin Rubel, a former director of the Bangladesh Garment Manufacturers and Exporters Association, said a relatively favorable tariff position is supporting US buyers' sourcing decisions.

Structural weaknesses remain. Shovon Islam, managing director of Sparrow Group, noted that the tariff structure and diversified product exports help Bangladesh compete with India and Pakistan and roughly match Indonesia and Cambodia, but it still lags behind Vietnam. He said long lead times and reliance on imported raw materials remain major disadvantages, especially as the average unit price of US apparel imports rose 1.71% while prices from major Asian suppliers were falling.

Islam believes Bangladesh needs to expand high-value-added apparel and man-made fiber production to seize changes in US demand structure. He also noted that China's declining market share in the US is pushing Chinese manufacturers to shift capacity to Vietnam and Cambodia; if concerns over politics, policy, bank credit, energy supply, and security improve, Bangladesh could also have a chance to attract that investment. Bangladesh had previously attracted about 250 Chinese investors, mainly in apparel and textiles, but that momentum has slowed since 2024.

Despite the cumulative export decline from January to August, data from the Bangladesh Export Promotion Bureau show that in August Bangladesh's apparel exports to the US surged 25.65% year-on-year to over $817 million (compiled by Bangladesh Apparel Voice). If competitiveness can continue to improve beyond the tariff advantage, this rebound could support future share gains.

Source: Bangladesh apparel exports show relative resilience in U.S. import downturn · Originally published on 2026-10-07