Amid broader demand contraction in the United States apparel market during the first half of 2026 (January–June), Bangladesh has demonstrated significant competitive resilience compared to major Asian rivals.
According to official data released by the Office of Textiles and Apparel (Otexa) under the US Department of Commerce, total US garment imports fell 8.04% in value to $35.09 billion and 8.50% in volume (Square Meter Equivalent - SME) as retailers managed excess inventory and navigated consumer spending cutbacks.
However, while shipments from China and India plunged by 37.69% and 25.27% respectively, Bangladesh’s exports contracted by a modest 5.75% to $4.01 billion.
Supported by a 5.74% year-on-year export rebound in June ($763.57 million) and favorable positioning under proposed US Tariff-Rate Quota (TRQ) frameworks, Bangladesh is poised to capture reallocated market share in the second half of 2026.
Global apparel shipments to the US totaled $35.09 billion in H1 2026, down 8.04% in value and 8.50% in volume compared to H1 2025.
US imports from Bangladesh reached $4.01 billion, declining 5.75% in value and just 3.69% in volume—significantly outperforming main regional competitors.
China suffered a 37.69% value drop ($ and 26.30% volume loss), while India experienced a 25.27% value decline ($ and 22.74% volume loss).
Vietnam achieved +1.08% value growth (+3.30% volume), Cambodia expanded +12.32% in value (+14.59% volume), and Indonesia grew +3.40% in value (+10.89% volume).
Bangladesh’s unit export prices softened by a minor 2.15% (matching Vietnam), whereas China was forced to slash unit prices by 15.46%, Indonesia by 6.75%, Pakistan by 5.63%, and India by 3.28% to defend volume.
Bangladesh recorded a 5.74% year-on-year increase in US export earnings in June 2026, generating $763.57 million.
H1 2026 US Import Value Trajectory (% Change YoY)
Cambodia █████████████ +12.32%
Indonesia ████ +3.40%
Vietnam █ +1.08%
Pakistan ▒ -3.50%
Bangladesh ██ -5.75% <-- (Stabilized Core Supplier)
India ██████████████████████ -25.27%
China ████████████████████████████████ -37.69%
Exporting Nation | Import Value (USD) | Value Change YoY (%) | Volume Change YoY (%) | Unit Price Change (%) |
Cambodia | Growth Leader | +12.32% | +14.59% | -1.98% |
Indonesia | Growth Leader | +3.40% | +10.89% | -6.75% |
Vietnam | Top Volume Supplier | +1.08% | +3.30% | -2.15% |
Pakistan | Moderate Decline | -3.50% | +2.26% | -5.63% |
Bangladesh | Core Stability Anchor | -5.75% | -3.69% | -2.15% |
India | Heavy Loss | -25.27% | -22.74% | -3.28% |
China | Severe Realignment | -37.69% | -26.30% | -15.46% |
US trade policy realignment
The shifting market dynamics coincide with updates to US trade policy under Section 301 mandatory labor-related trade frameworks, which categorize 86 exporting nations into a two-tier additional tariff structure:
- 10% Tariff Tier: Bangladesh, Cambodia, India, Indonesia, Pakistan, Malaysia, Canada, and the UK face a 10% additional tariff rate.
- 12.5% Tariff Tier: China, Vietnam, Thailand, Brazil, Russia, and Australia are subjected to a higher 12.5% additional tariff rate.
While the 10% rate is applied directly on top of existing Most-Favored-Nation (MFN) tariffs for Bangladesh, the 2.5% duty differential over Vietnam and China offers a relative pricing advantage.
US Proposed TRQ Advantage Structure
Eligible for Tariff-Rate Quota (TRQ): Bangladesh | Cambodia | Indonesia | Malaysia
Excluded Competitors (Higher Tariffs): China | Vietnam | India
Crucially, the US trade administration is reviewing plans to introduce duty-free Tariff-Rate Quotas (TRQ) for select textile and cotton product categories.
Bangladesh, Cambodia, Indonesia, and Malaysia have been designated as eligible participating nations, while direct competitors China, Vietnam, and India are excluded.
Once formally scheduled and implemented, TRQ access will allow specified volumes of Bangladeshi apparel to enter the US duty-free, providing a structural margin buffer against regional rivals.
"In an environment where total US apparel imports fell by over 8%, keeping Bangladesh’s value drop limited to 5.75% while China and India plummeted by 37% and 25% demonstrates strong buyer confidence," noted Mohiuddin Rubel, founder & CEO of Bangladesh Apparel Voice and former BGMEA director.
"In today's global market, preserving market share during a demand contraction is a victory. It proves that global retailers view Bangladesh as a reliable sourcing hub built on compliance, sustainable manufacturing, and scale."
"The 10% Section 301 tariff tier and the proposed duty-free Tariff-Rate Quota (TRQ) list present a unique opportunity for Bangladesh," Rubel emphasized.
"Because major competitors like Vietnam, China, and India are excluded from the initial TRQ proposal, Bangladesh stands to gain a distinct pricing edge. However, realizing this potential requires active economic diplomacy to expedite TRQ implementation, alongside domestic reforms to resolve gas shortages, port bottlenecks, and high commercial interest rates. We cannot capture global opportunities if domestic utility constraints stall factory output."
To convert US policy advantages into sustained export growth in H2 2026, trade analysts recommend four priorities:
- Focused Trade Diplomacy: Engaging US trade representatives to fast-track the official operational timeline for the proposed Tariff-Rate Quota (TRQ) system.
- Addressing Domestic Utility Deficits: Priority gas allocation to apparel and textile clusters in Gazipur, Savar, and Narayanganj to guarantee lead times.
- Port and Customs Streamlining: Fast-tracking raw material releases at Chittagong Port and Dhaka Airport to shorten production cycles.
- High-Value Product Shift: Expanding production capacity in man-made fiber (MMF) activewear and outerwear to capture higher unit-value orders in the US market.
Bangladesh’s resilience during the US apparel import contraction highlights its strength as a primary global sourcing destination.
By pairing its tariff advantages and proposed TRQ eligibility with domestic gas and infrastructure fixes, Bangladesh can turn the ongoing US market realignment into long-term export growth.
