Bangladesh has not converted its comparatively favorable US tariff position into higher garment orders as buyers move away from China, according to the report published in Chattogram on August 19, 2026. Under a new US tariff structure effective July 24, Bangladesh’s effective total tariff rate is about 25.6 percent, compared with 28.1 percent for Vietnam and 35.6 percent for China. Yet Bangladesh’s US apparel exports in the first five months of 2026 fell 8.1 percent year on year to more than $3.25 billion.

Analysts cited limited product diversification, weak capacity in man-made fiber garments, and port and customs complications that extend delivery times. Five basic categories—trousers, T-shirts, woven formal shirts, underwear and sweaters—generate 78 percent of Bangladesh’s apparel exports, while about 95 percent of factories make these products. In 2025, man-made-fiber products accounted for 57 percent of US apparel imports.

Vietnam exported $6.39 billion in apparel to the United States during the same five-month period, up 1.5 percent. Indonesia and Cambodia recorded export growth of 5.49 percent and 14.9 percent respectively. Bangladesh’s EU apparel exports also fell 19.33 percent in the first four months of 2026.