On a 22 June deadline, the Finacial Express reports on recent US garment sourcing trends:
Monira Munni | July 22, 2026
"Bangladesh's utilisation rate among US fashion companies declined sharply in 2026 as buyers intentionally maintain a diverse sourcing base prioritising capacity, flexibility, inventory agility and regional balancing in their sourcing strategy.
Besides, slow speed-to-market, limited supply chain flexibility and compliance concerns still remain major challenges despite the country's continued position as one of the world's leading apparel sourcing destinations, said a study report.
Bangladesh's utilisation rate dropped to 78.9 per cent in 2026 from 88.2 per cent a year earlier, according to the '2026 USFIA Benchmarking Study' released on Monday.
The USFIA study report said Bangladesh remained tied with Vietnam, Cambodia and Indonesia as the most-utilised apparel sourcing destination in 2026.
It, however, said utilisation rates among the major Asian sourcing destinations has declined compared with 2025.
Utilisation rate for China fell to 73 per cent and Vietnam to around 78 per cent from 100 per cent each.
Meanwhile, three non-Asian countries--Guatemala, Egypt and Jordan-- ranked among the top 10 sourcing destinations in 2026, with all recording higher utilisation rates in a year, the study revealed.
Protectionist US trade policies and tariff-related uncertainty remained the fashion industry's biggest business challenge in 2026, with 92 per cent of surveyed companies identifying them as their primary concern.
The average applied US tariff on apparel imports increased to 21.6 per cent in May 2026 from 15.2 per cent before the start of President Donald Trump's second term, it said.
The report also found that China and Vietnam were perceived to face the highest risk of future US import trade barriers, while Bangladesh, India and Cambodia are considered to face a moderate level of risk.
In contrast, suppliers in CAFTA-DR member countries and US domestic manufacturers were viewed as the least exposed to potential new trade restrictions.
The USFIA conducted the survey between April and June 2026 among 30 leading US fashion companies."
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