Bangladesh’s apparel exports to US face setback

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% from the same period a year earlier. During the January–March period, total imports fell to $17.73 billion, marking an 11.63% decline year-on-year.

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

During the January–March period, exports fell by 8.38% 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.

Total US apparel imports in March 2026 stood at $5.99 billion, down 7.80% from the same period a year earlier. During the January–March period, total imports fell to $17.73 billion, marking an 11.63% decline year-on-year. 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% year-on-year. During January–March, the decline was 2.56%

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

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

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% year-on-year. During January–March, the decline was 2.56%.

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

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. (Source: https://www.daily-sun.com/bangladesh/874034/bangladesh-s-apparel-exports-to-us-face-setback)