China’s long-standing dominance of the US apparel import market is seeing a marked decline, with Bangladesh and other developing producers rapidly gaining ground, according to new trade data.
Figures from the US Office of Textiles and Apparel (OTEXA) show a significant shift over the past six years.
In 2018, Bangladesh exported $5.4 billion worth of garments to the US, while China shipped goods worth $27.4 billion – nearly five times more.
In 2024, however, Bangladesh’s exports rose to $7.34 billion, while China’s fell sharply to $16.5 billion, narrowing the gap to just over double.
Analysts view this trend as a clear indication of Bangladesh’s growing clout in the global garment supply.
Emerging players
Bangladesh, Vietnam, India, Cambodia and Pakistan have all made significant inroads into the US apparel market.
Between 2018 and 2024, Bangladesh’s exports to the US grew by 35.95%, while China’s declined by 39.69%.
This drop also resulted in a 4.37% decrease in China’s share of the total US apparel import market.
Experts attribute the shift to the US-China trade war, steep tariffs and a growing desire among Western buyers to diversify supply chains.
“The transformation in the market shows Bangladesh is no longer seen merely as a low-cost labour destination,” said Mohiuddin Rubel, former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and managing director of Bangladesh Apparel Exchange.
“We are now recognized as a dependable source, thanks to our skills, quality assurance and timely delivery,” he added.
Analysts say Bangladesh must embrace more technology-driven and sustainable production methods to maintain this momentum, mentioning that at the same time, enhancing global branding and diversifying its product offerings have become increasingly crucial.
“The growth we have seen in the US amid tariff challenges proves that with the right planning and performance, Bangladesh can be a trusted global supplier,” Rubel said.
Tariff war triggers shift
The shift in market dynamics dates back to 2018, when the Trump administration imposed steep tariffs on Chinese goods, prompting retaliatory measures from Beijing.
The resulting trade war saw US buyers begin to reduce reliance on China, seeking alternative suppliers across Asia.
China’s apparel exports to the US dropped from $27.4 billion in 2018 to $16.5 billion in 2024. Bangladesh, in contrast, grew its US exports from $5.4 billion to $7.34 billion in the same period.
Surprise growth from Pakistan and Cambodia
According to OTEXA, Vietnam and India expanded their US market shares by 22.6% and 23.3%, respectively, over the past six years.
However, the steepest growth came from Pakistan (58.6%) and Cambodia (57.9%), showcasing the broader shift toward South and Southeast Asian suppliers.
Experts point to the post-Covid-19 restructuring of global supply chains as a contributing factor. US buyers now prefer sourcing from a wider range of countries to reduce dependency and improve reliability, they say.
South Asia rises despite market contraction
Despite a 4.37% contraction in total US apparel imports – from $82.9 billion in 2018 to $79.3 billion in 2024 – South Asian nations have continued to expand their market share.
China’s current market share stands at 21%, its lowest in a decade.
In contrast, Bangladesh, Vietnam, India and Pakistan are quickly filling the void.
Analysts believe that favourable tariff structures, labour-friendly environments and competitive pricing can make Bangladesh an increasingly attractive source.
Bangladesh’s place in the global value chain is strengthening as it shifts towards sustainable and efficient production systems, backed by a skilled workforce and growing technological adaptation.
China feels the pressure
China, long the top exporter of apparel to the US market, is now facing mounting pressure.
A series of continued tariff hikes by the US administration has led to a decline in purchase orders, creating opportunities for alternative sourcing countries in South Asia, including Bangladesh.
Under new US tariff policies initiated during President Donald Trump’s second term, Chinese apparel can face duties as high as 145%.
Beijing has responded with its own tariffs of up to 125%, escalating the cost of cross-border trade.
According to the BGMEA, a basic $2 cotton T-shirt imported from China now attracts $2.83 in tariffs, compared to just $0.53 if sourced from Bangladesh or Vietnam.
“This tit-for-tat tariff war suggests tensions between the US and China are far from over,” said Md Fazlul Hoque, former president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).
“This will likely accelerate the shift in orders away from China. Some factories may even relocate. Bangladesh must seize this opportunity,” he added.
