Bangladesh remained the second-largest apparel supplier to the United States during the first five months of 2026, despite a decline in exports, as global sourcing patterns continued to shift away from China, according to the latest data from the US Office of Textiles and Apparel (OTEXA).
Bangladesh’s apparel exports to the US fell 8.1% year-on-year to US$3.25 billion between January and May 2026. However, the decline was smaller than the overall 9.3% contraction in US apparel imports, allowing the country to maintain its position as the second-largest supplier to the American market.
Vietnam further strengthened its leadership by increasing exports 1.5% to US$6.39 billion, while China experienced a sharp 42.8% decline to US$2.80 billion, reflecting the continued impact of US tariffs and ongoing sourcing diversification by American retailers. China’s shipment volume also dropped by nearly 30% during the period.
Although Bangladesh preserved its market position, the latest figures indicate that the country has yet to secure a substantial share of the orders shifting away from China. Regional competitors expanded more rapidly, with Cambodia recording 14.9% export growth and Indonesia posting a 5.5% increase. India’s apparel exports to the US, meanwhile, declined 26.4%.
The latest monthly data offered a more optimistic outlook for Bangladesh. Apparel exports to the US increased 6% year-on-year in May, outperforming the 2.8% growth in total US apparel imports, suggesting a gradual recovery in demand after a weaker start to the year.
In terms of export volume, Bangladesh shipped 1.09 billion square metre equivalents (SME) during the January-May period, down 6.2% from a year earlier. The average export price declined marginally by 2% to US$2.99 per SME, indicating that manufacturers largely maintained pricing rather than resorting to significant discounting to retain orders.
OTEXA data also showed that Bangladesh continued to achieve higher average unit prices than China (US$1.43), Pakistan (US$2.59) and Cambodia (US$2.91). However, its export prices remained below those of Vietnam (US$3.39), India (US$3.41), Honduras (US$3.64), Indonesia (US$3.77) and Mexico (US$4.45).
Industry observers believe the latest data underscores Bangladesh’s resilience in the US market but also highlights the need to improve competitiveness, diversify product offerings, and capture a larger share of global sourcing shifts as international buyers continue reducing dependence on China.
