Bangladesh's ready-made garment sector is experiencing a challenging period in the United States market, with exports declining amid global trade uncertainty and shifting competition.
In 2025, the sector struggled in the U.S. due to factors such as reciprocal tariffs, reduced consumer spending, and broader instability in global trade. These challenges have continued into 2026, with demand for apparel further weakening. Bangladesh's garment export earnings to the U.S. dropped by 8.53% in the first two months of 2026 compared to the same period in 2025. In contrast, during the same time, garment exports from Bangladesh's competitors, Vietnam and Cambodia, increased. Export revenue fell from $1,500.70 million to $1,372.76 million-resulting in a loss of over $127 million. According to the latest statistics from the Office of Textiles and Apparel (OTEXA) under the U.S. Department of Commerce, Bangladesh's export earnings to the United States stood at $1,500.70 million in the first two months of 2025. In the same period of 2026, it declined to $1,372.76 million. That means Bangladesh lost more than $127 million in export earnings over the two months compared to the previous year.
OTEXA data also shows that overall U.S. apparel imports fell by 13.47% during this period. However, the picture was quite different for Vietnam and Cambodia. Despite the downturn, Bangladesh's key competitor Vietnam saw growth of 2.86%, Cambodia recorded a sharp increase of 18.43%, and Indonesia also grew by 4.2%. Meanwhile, China's exports dropped significantly by 57.65% in the first two months of 2026.
The situation worsened in February 2026 alone, when Bangladesh's garment exports to the U.S. fell by 17.18% compared to February 2025. Meanwhile, Vietnam and Cambodia recorded growth of 2.63% and 10.29%, respectively, during the same month.
Industry insiders attribute Bangladesh's declining performance to rising production costs, gas and electricity shortages, and longer lead times. On the other hand, competitors like Vietnam and Cambodia have gained an advantage by focusing more on man-made fiber garments, which are increasingly preferred by U.S. buyers.
Mohammad Hatem, President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said the negative trend began after the Trump administration imposed reciprocal tariffs. These measures increased import costs for buyers in both the United States and the European Union, leading to reduced purchase orders.
He added that the situation has been further complicated by conflicts in the Middle East, and overall order volumes have yet to recover.
