US brands and retailers are gradually diversifying sourcing away from China, but Bangladesh and Vietnam have not experienced increased demand in early 2025, according to a QIMA report. Despite ongoing tariff pressure, China remains a major sourcing hub, while countries like Cambodia, the Philippines, and especially Indonesia have seen a surge in inspection and audit requests from US buyers.
The report attributes Bangladesh’s stagnant growth to its heavy reliance on cotton garments, which may not align with evolving buyer preferences. Meanwhile, India, Pakistan, and Indonesia—with strong backward linkages and manmade fiber capabilities—are emerging as more attractive alternatives. Bangladesh’s apparel exports to the US grew 26.64% in the first two months of 2025, but experts warn that internal challenges—such as energy shortages, high production costs, and interest rates—must be addressed to maintain competitiveness amid global sourcing shifts driven by trade tensions and cost considerations.
Comment here