Bangladesh’s apparel exports to US face setback

Published : Monday, 11 May, 2026 at 3:40 PM Count : 6

Bangladesh’s garment exports to the United States have suffered a major setback. The country’s “reciprocal” tariff policy is being seen as one of the key reasons behind the decline. However, reduced consumer demand in the US, high interest rates, and various global factors are also being blamed for disrupting export growth. Data show that Bangladesh’s garment exports to the US experienced a significant slowdown in the first quarter of 2026.

While competitor countries such as Vietnam and Cambodia have maintained steady growth in garment exports, Bangladesh’s sharp decline has become a matter of concern for industry stakeholders. The latest analysis of data from the US Department of Commerce’s Office of Textiles and Apparel (OTEXA) also reveals another worrying trend: American buyers are paying lower prices for Bangladeshi garments.

BGMEA President Mahmud Hasan Khan said, “There is now major uncertainty in global trade. US retaliatory tariffs, the war situation in the Middle East, the energy crisis, and political instability at home are all increasing pressure on the export sector.

“The United States is Bangladesh’s largest export market. Any decline in exports there directly affects the country’s garment industry. Many global buyers have already reduced orders, while pressure on product prices is increasing.”

“Buyers are now shifting from large orders to smaller and short-term ones. More difficult challenges lie ahead.”

According to OTEXA data, total US apparel imports in March 2026 stood at $5.99 billion, down 7.80 percent from the same period a year earlier. During the January–March period, total imports fell to $17.73 billion, marking an 11.63 percent decline year-on-year.

Bangladesh exported garments worth $664.9 million to the US in March 2026, down 8.08 percent from March 2025.

During the January–March period, exports fell by 8.38 percent to $2.04 billion.

Analysts say weakening consumer demand in the US, high interest rates, and uncertainty surrounding import costs are putting pressure on the global apparel trade. At the same time, new tariff policies and supply chain complexities are also affecting import flows.

Among competing countries, Vietnam has remained comparatively stable. Its exports rose by 2.52 percent in March and 2.77 percent during January–March. Cambodia recorded even stronger growth, with exports increasing by 16.22 percent in March and 17.60 percent in the first quarter.

China, on the other hand, experienced a sharp decline in exports, falling by 37.24 percent in March and 52.91 percent during January–March. India’s exports also dropped by more than 27 percent.

Price analysis shows that the unit price of Bangladeshi garments has also declined. In March 2026, the average unit price stood at $2.86 per piece, down 2.77 percent year-on-year. During January–March, the decline was 2.56 percent.

Export volumes also decreased during the same period. Bangladesh exported 232.7 million pieces of garments to the US in March, down 5.46 percent from a year earlier. Total export volume in the first three months declined by 5.97 percent.

Industry insiders say that under the current circumstances, increasing not only export volume but also unit prices and product diversification is essential. In particular, they warn that Bangladesh will struggle to maintain long-term competitiveness unless it expands into higher-value fashion products and technical textiles.

They believe that although uncertainty persists in the global market, Bangladesh remains one of the leading garment suppliers to the United States. However, to remain competitive, the country must strengthen production efficiency, supply capacity, and trade diplomacy.

BGMEA First Vice-President and KDS Group Managing Director Selim Rahman said, “The ready-made garment sector is currently facing multidimensional challenges due to the global situation. Geopolitical uncertainty, disruption and instability in global trade systems, and Bangladesh’s upcoming post-LDC graduation are emerging as major challenges.”

He added that there is no alternative to improving production efficiency, ensuring product diversification, and expanding access to higher-value markets in order to tackle these challenges. He also stressed the importance of strengthening trade diplomacy and exploring new markets.

Former BGMEA director Mohiuddin Rubel said, “Although the overall trend in the US market is negative, Bangladesh remains in a comparatively strong position. China’s withdrawal from parts of the market has created opportunities. If the current difficulties can be overcome, there is significant potential ahead. Greater product diversification could further improve performance.”

31.21pc growth in April against special backdrop

Meanwhile, although Bangladesh’s garment exports recorded 31.21 percent growth in April this year, analysts say the figure cannot be properly evaluated without considering the special circumstances of the previous year.

In April 2025, Bangladesh’s garment exports stood at $2.39 billion. During that period, exports to the United States fell to $490 million, one of the lowest levels in recent years.

Business leaders said production and shipments slowed due to Eid-ul-Fitr. At the same time, uncertainty emerged in the market after the announcement of the United States’ “Liberation Day” tariff policy, prompting many buyers to suspend orders. India’s decision to cancel transshipment facilities also complicated export operations. As a result, April 2025 was considered an exceptional month.

Uncertainty over US tariff policy

Although a recent court ruling on the United States’ reciprocal tariffs temporarily suspended the 10 percent duty for certain parties, the measure remains in effect for most importers.

As a result, the tariff situation remains uncertain for exporters from Bangladesh and other countries. In particular, garment exporters are being forced to adopt a cautious approach in long-term planning and pricing.

Garment sector entrepreneur and TAD Group Managing Director Ashikur Rahman Tuhin said, “The instability currently affecting the global trading system has become a major challenge for Bangladesh’s export-oriented industries. Protectionist trade policies in different countries, additional tariffs, rising shipping costs, and supply chain uncertainty are making international business increasingly difficult. The ready-made garment sector is directly affected.”

According to Ashikur Rahman Tuhin, relying solely on low-cost production will not ensure long-term sustainability. Greater emphasis must now be placed on high-value products, technology-driven factories, skilled human resources, and faster delivery capabilities. At the same time, exploring new markets and strengthening trade diplomacy are also essential.

BGMEA President Mahmud Hasan Khan called for realistic and long-term planning to address these challenges in the export sector. He said, “Energy security must receive the highest priority. It is essential to ensure uninterrupted gas and electricity supply to industries and factories. The Rooppur Nuclear Power Plant must be brought into full operation quickly. At the same time, investment in renewable energy should be increased.”

He also urged Bangladesh not to rely solely on the US market and instead expand into new markets in the Middle East, Japan, Australia, Africa, and Latin America. He further stressed the need to enhance port capacity, reduce lead times, modernise customs systems, and bring bank lending rates down to a tolerable level.

FP/MI