In a sweeping shift across the global apparel trade, sourcing strategies are evolving rapidly as US fashion brands pivot toward more dynamic partners. With rising tariff pressures and trade uncertainties, traditional giants like China, Vietnam, and Bangladesh are witnessing a quiet retreat in sourcing preference, making way for a new wave of opportunity across India, Indonesia, and Cambodia.

According to the 2025 Fashion Industry Benchmarking Study, this realignment is no longer speculative. Around 65 percent of US fashion executives are looking to expand sourcing from India, while 63 percent favor Indonesia, and 61 percent plan to deepen ties with Cambodia. Bangladesh, though still a strong contender, holds steady at 53 percent, signaling a plateau in its growth as a sourcing destination.

Trade data from the first five months of 2025 confirms this transition. Bangladesh managed to increase its share of US apparel imports from 9.2 percent in 2024 to 10.6 percent in 2025. However, the combined import share of India, Indonesia, and Cambodia climbed from 17.1 percent to 18.5 percent an upward trend reflecting both growing production capabilities and the benefits of geopolitical neutrality.

Behind this reshaping lie deeper challenges. Over 70 percent of companies have reported that tariffs are squeezing sourcing budgets, while more than half have noted falling sales. A concerning 22 percent have already reduced workforce numbers. Even so, most brands remain committed to diversifying their sourcing network, embracing resilience over reliance.

For Bangladesh, the message is clear. The nation must urgently address its internal cost burdens and infrastructure gaps to stay relevant in a shifting global order. Meanwhile, India, Indonesia, and Cambodia continue weaving themselves into the fabric of tomorrow's apparel economy where speed, policy clarity, and smart positioning define the future of fashion trade.