Bangladesh’s garment exports to the United States, one of its largest destination markets, fell significantly in the first seven months of this year. Bangladesh exported $4.66 billion worth of garments to the U.S. between January and July, down 6.50% from the same period the previous year. In July alone, garment exports to the U.S. fell nearly 11%. Those concerned say this export data to Bangladesh’s major U.S. market has become the biggest source of worry for the garment industry right now.
According to Export Promotion Bureau (EPB) data, after the European Union, the United States is the single largest country destination for Bangladeshi garment exports. In fiscal 2025-26, Bangladesh’s garment exports to the U.S. were valued at $7.74 billion, more than 20% of the country’s total garment exports.
According to data from the U.S. Department of Commerce’s Office of Textiles and Apparel (OTEXA), total U.S. garment imports fell about 9% between January and July compared with the same period last year, dropping to $41.83 billion. The volume of imports fell 9.41% in the same period, though average unit prices rose 0.84%.
OTEXA data shows Bangladesh exported $4.65 billion worth of garments to the U.S. in the first seven months of the year, down from $4.98 billion the previous year. Meanwhile, Bangladesh exported 1.59 billion SME (square meter equivalent) units of garments to the U.S. in the first seven months of last year; that figure fell 4.34% to 1.52 billion SME units in the same period of 2026. The average unit price was $3.12 in January-July 2025, falling 2.26% to $3.05 in the same period of 2026.
Among major competitors in this period, China saw the steepest export decline at 34.21%, followed by India at 25.77%. Pakistan and Vietnam saw declines of 5.60% and 1.03%, respectively. However, Indonesia and Cambodia saw their garment exports to the U.S. market rise 2.76% and 10.48%, respectively.
Another important shift was seen in garment unit prices during this period. Exporters believe the drop in Bangladesh’s exports has also been influenced by falling unit prices. They say how Bangladesh’s export pace holds up over the coming months amid the ongoing gas and electricity crisis has also become an important question, since changes in buyer orders, product prices and competitor countries’ supply capacity in the U.S. market play a crucial role in shaping the trajectory of Bangladesh’s garment exports.
On the overall situation, Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said the first reason for lower exports is that orders are down in the international market generally, and exports have fallen accordingly. He said the U.S. market in particular has been in an uncertain state for nearly a year now, largely because of Trump’s tariffs and the subsequent decisions that followed, creating an unpredictable and uncertain period — which is why total exports to the U.S. market have declined.
Mohammad Hatem added that there is still room for hope on exports going forward — a clause in Bangladesh’s new agreement with the United States provides “duty-free access” for products made using U.S. materials. If Bangladesh can make use of this opportunity, its exports there will increase.