US market slump hits RMG exports

Bangladesh's apparel exports to the United States shrank in the first quarter of 2026 amid weakening global demand, falling prices and mounting competition from regional rivals, with exporters partly blaming tariffs introduced during the Donald Trump administration.

Data released by the Office of Textiles and Apparel (OTEXA) showed Bangladesh exported garments worth $2.04 billion to the US market during January-March 2026, marking an 8.38 per cent decline from $2.22 billion in the same period last year.

In March alone, exports fell 8.08 per cent year-on-year to $664.94 million.

Despite the decline, Bangladesh performed slightly better than the global average, as overall US apparel imports dropped by 11.63 per cent during the period.

Export volume also weakened. Bangladesh shipped 690.11 million square metre equivalents (SME) in the first quarter, down 5.97 per cent from 733.92 million SME a year earlier.      

March export volume alone declined by 5.46 per cent.Industry insiders are increasingly alarmed by falling unit prices, a sign of intensifying global competition. The average price of Bangladeshi garments dropped to $2.95 per unit in the first quarter of 2026 from $3.03 a year earlier, while March prices slipped further to $2.86.

The sharp contraction of China's exports to the US - down 52.91 per cent in value - failed to translate into gains for Bangladesh. Instead, Vietnam and Cambodia captured much of the shifting demand. Vietnam posted 2.77 per cent growth in export value, while Cambodia recorded an impressive 17.60 per cent rise.

Analysts warned that Bangladesh's persistent weaknesses in logistics, supply chain efficiency and product diversification are eroding competitiveness despite its lower pricing advantage.

BGMEA President Mahmud Hasan Khan Babu said reciprocal tariffs imposed under the Trump administration had reduced US consumer spending, affecting imports from Bangladesh.

Bangladesh Apparel Exchange CEO Mohiuddin Rubel said the country failed to capitalise on China's declining market share, unlike Vietnam, Indonesia and Cambodia, which moved swiftly to secure new sourcing opportunities.