Bangladesh has once again surpassed China in the United States' ready-made garment (RMG) market, solidifying its position as a primary sourcing destination.
As trade tensions, retaliatory tariffs, and shifting global supply chains continue to impact Chinese exports, Bangladesh is successfully capturing a larger share of the American market.
According to the latest data from the Office of Textiles and Apparel (Otexa) under the US Department of Commerce,
Bangladesh exported $2.04 billion worth of apparel to the US during the first quarter (January-March) of 2026.
During the same period, China’s exports fell to $1.70 billion, marking a significant realignment in the U.S. retail landscape.
The decline in China’s performance has been sharp and decisive.
In just a year, Chinese apparel exports to the US plummeted by nearly 53%, dropping from $3.61 billion in the first quarter of the previous year to $1.70 billion today.
Industry analysts attribute this downturn to several critical factors, including ongoing trade friction and high tariff barriers between Washington and Beijing, international brands aggressively diversifying their supply chains away from China to mitigate geopolitical risks, and China seeing a 21% decrease in its unit prices, yet still failed to maintain its volume, which dropped by over 40%.
While Bangladesh’s exports also saw a modest decline of 8.38% due to global inflationary pressures, the contraction was far less severe than China’s, indicating a more stable foothold.
Overall, total US apparel imports fell by 11.63% to $17.73 billion as American consumers tightened spending amidst rising costs of living.
Despite the shrinking market, Bangladesh’s ability to retain its standing reflects a growing reliance on its manufacturing capabilities.
Currently, Bangladesh holds roughly 11.5% of the US market share, while Vietnam remains the top supplier with a 22% share.
The first quarter of 2026 revealed a mixed performance across major garment-producing nations in Asia:
- Vietnam: Maintained the top spot with $3.98 billion in exports, achieving a 2.77% growth despite the global slowdown.
- Cambodia: Emerged as a significant winner with a robust 17.60% growth.
- India: Faced a steep decline, with exports falling by 27% to $1.10 billion.
- Indonesia & Pakistan: Both nations are struggling with intense price competition, often accepting lower-margin orders to maintain factory operations.
Mohiuddin Rubel, additional managing director of Denim Expert Ltd. and former director of BGMEA, noted that while the overall global apparel trade is sluggish, Bangladesh's position remains comparatively firm.
He emphasized that the massive decline in Chinese exports is creating a new equilibrium in the international market, one where Bangladesh is no longer just an alternative, but a primary supplier.
The road ahead
To fully capitalize on China’s receding market share, industry experts urge Bangladesh to move beyond basic commodities.
The future of the RMG sector will depend on several strategic shifts, such as increasing investment in high-value products and synthetic (man-made) fiber apparel, improving lead times through better port logistics and reliable energy supplies, and with global buyers demanding lower prices despite rising production costs, factories must enhance productivity to remain viable.
As the US market continues to move away from Chinese manufacturing, Bangladesh stands at a critical juncture.
By strengthening its logistical backbone and evolving its product mix, the nation is well-positioned to become the indispensable anchor of the American apparel supply chain.
