NEW DELHI: The United States has reduced tariffs on Bangladeshi exports to 19% under a new reciprocal trade agreement, while granting zero-tariff access to select textile and apparel products made using US-sourced materials. The move is expected to strengthen Bangladesh’s garment exports and deepen bilateral trade ties between the two countries.
The latest decision marks a further reduction from the 20% tariff level set in 2025 and earlier proposals that had reached as high as 37%, following months of negotiations between Washington and Dhaka. Officials said the agreement aims to create balanced trade conditions while encouraging supply-chain cooperation in textiles and manufacturing.
Bangladesh’s ready-made garment sector — which accounts for more than 80% of the country’s exports — is expected to benefit the most from the tariff cuts. Industry experts believe duty-free access for garments made with US materials could help Bangladeshi exporters secure larger orders from American retailers and increase their competitiveness in the global apparel market.
In return, Bangladesh has agreed to expand market access for American goods, including agricultural products, machinery, chemicals and energy supplies. The deal also includes commitments to increase imports from the United States and reduce certain trade barriers to strengthen economic cooperation.
Analysts say the new tariff structure could reshape regional competition in textiles, particularly affecting suppliers in South Asia. While Bangladesh’s overall tariff rate remains slightly higher than some competitors, the zero-duty provision for select apparel segments may give its exporters a strategic advantage in key US markets.
The agreement reflects Washington’s broader push for reciprocal trade partnerships and signals growing economic engagement between the US and South Asian economies amid evolving global supply chains.
