Despite a shrinking global market for apparel, South Asian nations, especially Bangladesh, are gaining momentum in the U.S. clothing import sector. While total apparel imports into the United States declined by 4.37% between 2018 and 2024, data reveals a strategic realignment of sourcing, with Western buyers moving away from China and increasingly turning to regional alternatives like Bangladesh, Vietnam, India, and Pakistan.
U.S. Apparel Market Contracts: In 2018, the U.S. imported $82.88 billion worth of apparel. By 2024, that figure dropped to $79.25 billion-a loss of $3.63 billion over six years. While this might suggest a challenging environment for exporters, South Asian countries have defied the odds. “Even though the overall pie is getting smaller, Bangladesh has managed to carve out a bigger slice,” said economist Dr. Masrur Reza. “It’s a classic case of smart positioning during global realignments.”
China’s Declining Share and Rising Pressure: China, long the world’s apparel manufacturing powerhouse, has seen its share of U.S. apparel imports fall to just 21%-the lowest in over a decade. This drop is due in large part to an escalating trade war and a series of tariff hikes under the administrations of both President Biden and former President Donald Trump. During Trump’s second term, the U.S. ramped up tariffs on Chinese ready-made garments to as high as 145% in a phased approach. China responded by imposing counter-tariffs of up to 125%. The result has been a steep decline in the competitiveness of Chinese apparel in the American market. For example, importing a simple $2 cotton T-shirt from China now costs U.S. retailers $2.83 in tariffs, according to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). In contrast, a similar T-shirt imported from Bangladesh or Vietnam incurs a tariff of only $0.53. “This kind of difference is huge,” noted Fazlul Haque, former president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). “In bulk orders, that gap can be worth millions of dollars. That’s why we’re seeing purchase orders shifting away from China.”
South Asia Seizes the Opportunity: While China’s share shrinks, Bangladesh and its South Asian neighbors are rising to meet demand. According to the U.S. Office of Textiles and Apparel (OTEXA), Bangladesh’s apparel exports to the U.S. rose from $5.4 billion in 2018 to $7.34 billion in 2024-an increase of nearly 36%. Pakistan and Cambodia also posted growth rates of over 50%, while Vietnam and India saw their exports increase by over 20%. Western buyers are now prioritizing diversification of their global supply chains. The Covid-19 pandemic, logistical crises and geopolitical tensions have shown the risks of overdependence on a single country. Bangladesh, with its cost competitiveness and improving compliance standards, has emerged as a credible alternative.
A Labor-Intensive, Competitive Advantage: Bangladesh’s low-cost, labor-intensive manufacturing base is a central advantage. Wages remain lower than in China or even Vietnam, and production infrastructure has steadily improved over the past decade. Additionally, Bangladesh’s ready-made garment sector is embracing sustainable practices. With over 200 green-certified factories-more than any other country-the industry is increasingly aligning itself with global ESG (Environmental, Social, and Governance) expectations. “Many global brands want to source from countries where labor is affordable, but also where compliance is improving,” said Rubana Huq, former president of the BGMEA. “Our industry has turned a corner. We’re not just a cheap-labor hub anymore; we’re getting recognition for quality and sustainability.”
Growing Role in Global Value Chains: Bangladesh’s strengthening position in the global value chain is driven by its ability to adapt to shifting buyer priorities. As Western importers prioritize supply chain resilience, Bangladesh’s geographical location, stable political environment (relative to regional competitors), and export-friendly policies have worked in its favor. Furthermore, ongoing investment in infrastructure-such as road upgrades, inland container depots, and an upcoming deep-sea port in Matarbari-is expected to further enhance export capacity. “Once we have a fully operational deep-sea port, lead times will shorten significantly,” said BGMEA director Mohiuddin Rubel. “This will make us even more attractive to time-sensitive U.S. and EU buyers.”
China’s Widening Challenges: China’s challenges go beyond tariffs. Rising labor costs, demographic shifts, and internal economic issues have made its manufacturing less competitive. As a result, even Chinese investors are looking to diversify their operations, with some setting up garment factories in Bangladesh and Vietnam. There are also reports that several large Western brands are shifting their production lines entirely out of China in favor of South Asia and Southeast Asia. “This isn’t just about tariffs anymore,” said Dr. Shahida Akter, a global trade analyst. “It’s about strategic shifts. Western companies are building redundancy into their supply chains. They want multiple sourcing countries, and South Asia is perfectly positioned.”
But Caution Remains: Despite the optimism, analysts caution that Bangladesh must act fast to sustain its advantage. The RMG sector still faces issues such as: Unreliable power supply, Port congestion, Lack of product diversification, Labor rights concerns in some factories. “These issues can limit our growth if not addressed,” said former commerce secretary Shubhashish Bose. “We have the opportunity, but also the responsibility to mature as an apparel-exporting nation.” For now, the signs are positive. With China facing headwinds and Western buyers committed to diversification, South Asia-led by Bangladesh-is well positioned to redefine the global
