China sharply losing US apparel market; Bangladesh, Vietnam and India major gainers: Report

China, the global leader in apparel supply, is sharply losing its share of the United States apparel market, mainly due to heavy tariffs, creating an opportunity for other major suppliers, including Bangladesh, according to a recent report.

Citing data from the Office of Textiles and Apparel (OTEXA), compiled by the Bangladesh Apparel Exchange, the report states that during the first eight months of the current calendar year 2025 (January-August), US apparel imports grew year-on-year by 3.32% to reach $53 billion.

The data shows that during this period, US apparel imports from China fell by more than 25% (one-fourth). During the same period, imports from Vietnam increased by 15.69%, Bangladesh by 19.82%, and India and Indonesia by around 16% each.

Chinese apparel unit prices in the US market also dropped significantly, by more than 8%.

Vietnam is still the single highest exporting country to the US market amounting over $11 billion, followed by China, Bangladesh, India, Indonesia, Cambodia, Mexico, Pakistan and Honduras respectively.

The Trump administration announced new tariffs in early April; although a temporary 10% tariff was applied to all supplier countries, and the final tariff-announced in early August after negotiations-was set at 15% to 20% for most major suppliers. 

However, the reciprocal tariffs imposed on China and India were significantly higher than those applied to other countries.

The data further shows that in August-the month when the reciprocal tariff took effect-US apparel imports declined by more than 6% year-on-year, while imports from China plunged by about 46%.

In the same month, US apparel imports from Vietnam rose by 8.76%, from Bangladesh by 7.50%, from India by 16.08%, from Indonesia by 11.16%, and from Cambodia by 49%.

Mohiddin Rubel, managing director of the Bangladesh Apparel Exchange and former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told The Business Standard, "As the US reciprocal tariffs were fully imposed from 7 August and this data covers only up to August, it does not fully reflect the tariff impact."

"We need to wait for US import data for another four to five months after August, to observe the actual scenario," he added.

The data also shows that from January to August, ⁠Bangladesh's apparel unit price in the US market increased by 1.08%, Vietnam's by 0.64%, and India's by 1.29%.

On the other hand, Cambodia, Pakistan, Indonesia, and Mexico recorded significant drops in unit prices.

Mostafa Abid Khan, former member of Bangladesh trade and Tariff Commission and international trade expert opined that, We have to wait for the data for till next December to get a real picture of the impact of the new tariff.

He, however, expressed hope that US apparel imports may start to increase from next January.