Bangladesh gains bigger share in US apparel market as China loses ground, sees 29% export growth in Jan-Apr

Infographic: TBS

Bangladesh's apparel exports to the US market reached $2.98 billion in the first four months of 2025, a 29.33% year-on-year growth, far outpacing its competitors in the world's largest economy, according to data from the US Office of Textiles and Apparel (OTEXA).

Exporters and industry experts say ongoing trade tensions between the United States and China are prompting American buyers to reduce their reliance on Chinese apparel, creating new opportunities for countries like Bangladesh, which is among the key beneficiaries of this shift.

During the January-April period, total US apparel imports rose by about 11%. China's exports to the US barely grew, registering a marginal 0.66% increase. In contrast, Vietnam posted a 16.06% rise, India 20.30%, and Pakistan 19.57%.

OTEXA data shows that in April alone, China's apparel exports to the US declined by 13%, while Bangladesh's jumped nearly 38%. Cambodia led the monthly surge with 39% growth, followed by Pakistan and Sri Lanka (26%), India (10%), Vietnam (2%), and Indonesia (3%).

Trade analysts believe the sharp decline in Chinese exports was influenced by the US government's imposition of a 125% tariff on Chinese products in April, tariffs that were not as steep for other countries.

"This tariff shift has clearly impacted China's market share, while countries like Bangladesh have gained," said Dr Mostafa Abid Khan, international trade expert and former member of the Bangladesh Trade and Tariff Commission. 

He believes that Bangladesh has captured a portion of the apparel market in the US that China has been losing.

However, Fazlul Hoque, former president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), believes the impact of April's tariff changes will be better understood through the export figures of May.

"US buyers have already been shifting orders as part of their move to reduce dependence on China, and a significant share of those orders is coming to Bangladesh. That's why Bangladesh is seeing relatively higher growth," he told The Business Standard.

"It's good news that Bangladesh is gaining more than its rivals in the US market. If the new Trump-era tariffs don't apply to us going forward, we could see even stronger performance," he added.

Fazlee Shamim Ehsan, managing director of Fatullah Fashions Ltd, said US buyers had already been cautious about increasing business with China following Donald Trump's rise in political influence.

"Many began reducing orders from China, which benefited Bangladesh and Vietnam in terms of apparel export growth," he said.

Bangladesh also recorded a 28.30% rise in the number of pieces shipped, ranking second only to India and Pakistan in terms of volume growth.

However, the rise in value and volume did not translate into stronger pricing power. 

Bangladesh's unit price increased by just 0.80%, while Vietnam saw a stronger 3.58% rise. In contrast, China, India, and Pakistan all faced a drop in unit prices, indicating price pressures across the market.

For Bangladesh, this performance reflects growing competitiveness in the US market, exporters and analysts said. Yet, the modest price gain highlights a concerning trend: exporters are shipping more at nearly the same or lower margins.

On the other hand, analysts noted that Vietnam's ability to raise prices suggests a greater value addition or brand positioning – something Bangladesh must work toward to ensure long-term sustainability and profitability in the global apparel trade.

Between January and April this year, the US imported $26 billion worth of apparel. Vietnam topped the list with $5.09 billion, followed by China ($4.35 billion) and Bangladesh ($2.98 billion). 

Other top exporters included Indonesia, India, Mexico, Honduras, Cambodia, Pakistan, and South Korea.

Uncertainty over tariffs

While the Trump administration temporarily suspended its new tariffs on Bangladesh for three months, the moratorium is set to expire this month. 

This has sparked concern among both US importers and Bangladeshi exporters about what lies ahead. Experts have stressed the need to begin formal negotiations without delay.

Dr Mostafa Abid Khan said Bangladesh has yet to start formal trade negotiations with the United States, making it difficult to predict what lies ahead.

"About 50% of Bangladesh's imports from China are re-exported," he explained. 

"So we need to understand the US position on imported fabrics or yarn from China. Although there is potential in the US market, uncertainty still remains," he added.