Bangladesh gains ground in US apparel market amid China’s decline

Bangladesh boosts garment exports by 36% as Western buyers diversify supply chains

DHAKA, Bangladesh (MNTV) — China’s dominance in the United States apparel import market is eroding rapidly, with Bangladesh and other South Asian producers stepping up to fill the gap, according to newly released trade data.

Figures from the US Office of Textiles and Apparel (OTEXA) reveal a striking shift. From 2018 to 2024, China’s garment exports to the US fell from $27.4 billion to $16.5 billion — a nearly 40% drop — while Bangladesh’s exports rose from $5.4 billion to $7.34 billion, marking a 36% increase. 

Consequently, China’s share of the US apparel import market declined by 4.37%.

Experts point to the ongoing US-China trade war, high tariffs, and a strategic shift among Western buyers toward supply chain diversification as key drivers of this market realignment.

“The transformation in the market shows Bangladesh is no longer seen merely as a low-cost labour destination,” said Mohiuddin Rubel, managing director of Bangladesh Apparel Exchange and former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). 

“We are now recognized as a dependable source, thanks to our skills, quality assurance, and timely delivery.”

Alongside Bangladesh, other emerging players — including Vietnam, India, Cambodia, and Pakistan — have also made significant inroads into the US market. 

According to Dhaka Tribune, Despite a slight contraction in total US apparel imports — from $82.9 billion in 2018 to $79.3 billion in 2024 — South Asian suppliers have expanded their collective share.

China’s current market share has dropped to 21%, its lowest level in a decade, while competitors in South and Southeast Asia are increasingly stepping into the void.

The trade war that began in 2018 under the Trump administration marked a turning point. 

Washington’s imposition of steep tariffs on Chinese goods triggered retaliatory measures from Beijing and led US retailers to seek alternative sources in the region.

Rubel emphasized the need for Bangladesh to build on its momentum. 

“The growth we have seen in the US amid tariff challenges proves that with the right planning and performance, Bangladesh can be a trusted global supplier,” he said.

To sustain this upward trajectory, analysts recommend that Bangladesh accelerate adoption of technology-driven and sustainable production practices, while expanding its branding and diversifying product offerings to meet evolving global demands.