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Jan-May apparel exports to US fall over 8pc

May shipments returned to growth as orders show signs of recovery


FE REPORT | July 12, 2026 00:00:00


Bangladesh's apparel exports to the United States declined more than 8 per cent in the first five months of 2026 as weaker consumer demand weighed on imports, although a rebound in May signalled a potential recovery in export orders.

Data from the US Office of Textiles and Apparel (OTEXA) showed Bangladesh exported apparel worth US$3.25 billion to the US during January-May 2026, down 8.08 per cent from the same period a year earlier.

The decline came as the overall US apparel import market contracted sharply.

Total US apparel imports fell 9.25 per cent year-on-year to $28.78 billion during the five-month period, while import volumes dropped 9.48 per cent, reflecting softer consumer demand.

Average import prices edged up just 0.25 per cent.

Despite the weak cumulative performance, Bangladesh recorded a turnaround in May, with apparel exports rising 6.04 per cent year-on-year to $582 million, indicating improving sourcing demand.

In volume terms, Bangladesh shipped 6.21 per cent fewer garment pieces to the US market during January-May, while the average unit price declined by 2.0 per cent, underscoring continued pressure on both shipment volumes and prices.

The OTEXA data also pointed to an ongoing reshuffle in global sourcing patterns.

Vietnam, the largest apparel supplier to the US, recorded 1.46 per cent growth during the period, while Cambodia emerged as the fastest-growing major supplier with exports rising 14.9 per cent. Indonesia also expanded its apparel exports by 5.49 per cent.

By contrast, China's apparel exports to the US plunged 42.75 per cent, highlighting the continued impact of trade tensions and buyers' diversification strategies. India's exports declined 26.37 per cent, while Pakistan recorded a 12.35 per cent fall.

Cambodia also led volume growth, with shipments increasing 18.03 per cent, followed by Indonesia (13.16 per cent) and Vietnam (3.01 per cent). Bangladesh's export volume declined 6.21 per cent, while China's plunged 29.67 per cent.

Average unit prices fell across most major suppliers. China recorded the steepest decline at 18.59 per cent, followed by Pakistan (6.84 per cent) and Indonesia (6.78 per cent). Bangladesh's average unit price fell by a comparatively modest 2.0 per cent.

Mohiuddin Rubel, former director of BGMEA, said the latest figures reflected both weaker US import demand and an ongoing shift in global sourcing.

"The sharp contraction in China's exports and the continued growth of Cambodia and Vietnam suggest buyers are actively diversifying their sourcing. Bangladesh has also benefited from this trend to some extent, but the overall decline in US imports has constrained its export performance," he said.

He said Bangladesh's return to positive growth in May was an encouraging sign, but sustaining the momentum would require stronger competitiveness, shorter lead times and higher productivity.

"With China's share of the US market shrinking rapidly, Bangladesh has an opportunity to secure additional orders if it can strengthen logistics, enhance compliance and maintain competitive pricing," he added.

Rubel also expressed optimism that exports to the US market would continue to improve in the coming months as order inflows strengthened, a trend that is also reflected in Export Promotion Bureau (EPB) data.

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