Bangladesh maintained its position as the second-largest apparel supplier to the United States during the first five months of 2026, despite a decline in shipments, as U.S. buyers continued to reduce their reliance on Chinese imports.
According to data from the U.S. Office of Textiles and Apparel (OTEXA), Bangladesh’s garment exports to the U.S. decreased 8.1% year over year to $3.25 billion between January and May. However, the decline was less severe than the broader U.S. apparel import market, which contracted by 9.3% during the same period.
Vietnam strengthened its position as the leading apparel supplier to the U.S., with exports increasing 1.5% to $6.39 billion. In contrast, China’s shipments declined sharply by 42.8% to $2.80 billion, reflecting a faster shift in global sourcing patterns as retailers respond to U.S. tariffs and pursue supply chain diversification.
By volume, China’s shipments fell nearly 30%. Indonesia and Cambodia emerged as key beneficiaries, with exports growing 5.5% and 14.9%, respectively, while India recorded a 26.4% decline in shipments.
Bangladesh kept its market position but has not gained a major share of orders, moving away from China. However, May showed signs of recovery, with U.S. exports rising 6% year-on-year, ahead of overall U.S. apparel import growth. From January to May, Bangladesh’s shipments fell 6.2% to 1.09 billion SME, while average prices declined slightly by 2% to $2.99 per SME.
China faced a sharp decline, with apparel exports to the U.S. falling nearly 43% in value and 30% in volume due to tariffs and shifting sourcing strategies. Meanwhile, Indonesia and Cambodia gained ground, with Indonesia’s exports growing 5.5% in value and 13% in volume, while Cambodia recorded the fastest growth at nearly 15% in value and 18% in volume.
Bangladesh’s garment export prices to the U.S. remained relatively stable despite softer demand, suggesting exporters largely avoided aggressive price cuts to maintain orders. The average unit price of Bangladeshi apparel declined 2% year over year to $2.99 per square meter equivalent (SME) during January-May 2026, compared with the global average of $3.14.
According to OTEXA data, Bangladesh’s pricing remained above China ($1.43), Pakistan ($2.59), and Cambodia ($2.91) but below suppliers including Vietnam ($3.39), India ($3.41), Honduras ($3.64), Indonesia ($3.77), and Mexico ($4.45).
China had the lowest unit prices among major suppliers, reflecting its focus on cost-efficient, high-volume production. In contrast, Mexico maintained the highest average prices due to its proximity to the U.S. and greater value-added apparel production. Bangladesh’s stable pricing suggests its export decline was mainly caused by reduced shipment volumes rather than falling prices.
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