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Supply Chain
Bangladesh Becomes the Second-Largest Apparel Supplier to the U.S.
Bangladesh became the second-largest apparel supplier to the U.S. in early 2026. But this is not due to strong performance. Exports from Bangladesh to the U.S. reached $1.37 billion in January and February 2026. This is an 8.53% drop compared to the same period last year.
Despite this decline, Bangladesh moved up to second place. This happened because China’s exports fell sharply. China’s shipments dropped by 57.65% to $1.17 billion.
Vietnam remains the top supplier.
It exported $2.7 billion and posted a small growth of 2.88%. This change in ranking does not show growth for Bangladesh. It shows that Bangladesh declined less than others.
China’s sharp fall is mainly due to high U.S. tariffs. In some cases, tariffs are close to 40%. This has made Chinese apparel more expensive. As a result, buyers are shifting orders to other countries.
At the same time, U.S. demand is weak. Total apparel imports fell by about 13.5% during this period. Many retailers are still clearing old inventory from late 2025. This has reduced new orders across all sourcing countries.
In this situation, Bangladesh is not gaining strength. It is simply holding its position better than others. Vietnam shows a different picture. Its steady growth comes from a more diversified product base and a stronger supply chain.
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The global sourcing shift is still happening. Buyers are following the China +1 strategy. But Bangladesh has not fully benefited from this shift yet. The country still depends heavily on basic cotton products. It needs to expand into higher-value items and improve efficiency.
The current ranking gives a mixed signal. Bangladesh moved up in position, but not in performance. Bangladesh did not rise because it grew; it rose because others fell.
The current ranking gives a mixed signal. Bangladesh moved up in position, but not in performance. Bangladesh did not rise because it grew; it rose because others fell.