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Published : 11 May 2026, 01:17 AM
Market Shift Paradox
A gap left by the superpower: The ranking surge is primarily a byproduct of China’s massive 53 percent export plunge, allowing Bangladesh to climb the ladder by simply outlasting a rival’s exit.
US policy redraws map: Aggressive US trade levies have forced a global reshuffle, yet Bangladesh’s own shipments have contracted by over 8 percent as Western buyers tighten their belts.
Economic pressures dampen growth: Rising fuel costs and persistent inflation continue to hit the sector, with industry leaders warning that the higher rank masks a worrying trend of falling revenue.
Bangladesh has overtaken China to become the second-largest apparel exporter to the United States, yet garment manufacturers say there is little reason for celebration.
What appears at first glance as a breakthrough is, in reality, a reshuffling driven by contraction. US tariffs imposed under President Donald Trump have sharply reduced Chinese exports, while Bangladesh’s shipments have also fallen -- just at a slower pace.
“We would have been truly happy if exports had increased and we had reached second position,” exporters say, warning that the real trend will only become clear after a couple of months.
Garments account for more than 80 percent of Bangladesh’s export earnings, and the US is the single largest destination, contributing roughly 20 percent of apparel export revenue.
Tariff Shock Reshapes Rankings
According to updated figures from the US Department of Commerce’s Office of Textiles and Apparel (OTEXA), US buyers imported apparel worth $17.73 billion in January–March, down 11.60 percent from a year earlier.
Bangladesh exported $2.04 billion during the period, an 8.38 percent fall. China’s exports plunged nearly 53 percent to $1.7 billion, compared with $3.61 billion a year earlier.
Vietnam, meanwhile, retained the top position with $3.98 billion in exports, rising 2.73 percent and capturing about 22 percent of the market. Bangladesh holds roughly 11.5 percent.
India’s exports fell 27 percent to $1.1 billion, while Indonesia’s slipped marginally to $1.22 billion.
Policy Shifts and Market Turbulence
The ranking changes have unfolded amid repeated shifts in US tariff policy.
After initial tariffs imposed on 157 countries in April 2024, Bangladesh’s rate fluctuated -- from 37 percent to 35 percent, then down to 20 percent after negotiations, and later 19 percent following a bilateral agreement in February.
Subsequent legal and policy changes, including a Supreme Court ruling and renewed tariff measures, added further uncertainty before partial suspension by a US trade court in May.
Despite early gains from diverted orders away from China, exporters say the momentum has faded as prices rose and demand weakened amid global inflation and rising fuel costs after geopolitical tensions.
A Temporary Statistical Advantage
Industry leaders say Bangladesh’s improved ranking reflects a relative decline elsewhere rather than structural strength.
BKMEA President Mohammad Hatem said exports have been on a negative trajectory for months. He noted that March shipments were affected by Eid holidays, creating distortions in April figures.
“No factory has received extra orders, nor has there been sudden buyer pressure,” he said, adding that the real situation would only become clear by July.
He warned that rising fuel costs, inflation, and global instability are continuing to depress orders.
Former BGMEA president Anwar-Ul-Alam Chowdhury Parvez said successive global shocks -- from the pandemic to wars and tariff disputes -- have created sustained pressure on the sector.
“Everything is interconnected,” he said, pointing to reduced purchasing power in Western markets and intensified competition from China and India in Europe.
Growth that isn’t Growth
Historical data underline the volatility. Bangladesh’s US apparel exports rose 11.71 percent in 2025 to $8.2 billion, after marginal growth in 2024. The sector’s peak came in 2022 at $9.73 billion.
China remained ahead in 2025 despite a 35.54 percent fall, while Vietnam grew nearly 12 percent and widened its lead.
Other competitors, including Cambodia and Indonesia, also recorded mixed performance but maintained strong positions.
For Bangladesh, exporters say the present moment is less a milestone than a warning: a higher ranking built on declining volumes across the board, rather than expanding demand.
