Washington/Dhaka: Bangladesh has secured a reduced tariff rate of 19 per cent under a new trade understanding with the United States, with additional relief for certain textile and apparel products made using American raw materials, interim government chief Muhammad Yunus announced on Monday.
In a post on social media platform X, Yunus said the United States had agreed to create a mechanism that would allow specific Bangladeshi garments manufactured with US-produced cotton and man-made fibre to enter the American market without reciprocal tariffs.
The agreement follows nine months of negotiations that began in April last year. There was no immediate response from the US Treasury Department or other offices of the Trump administration regarding the development.
Commerce Secretary Mahbubur Rahman said ready-made garments (RMG)—Bangladesh’s primary export sector—made using US-imported cotton and synthetic fibres would qualify for zero reciprocal duty under the arrangement. The deal was formally signed in Washington by Commerce Adviser Sheikh Bashir Uddin and US Trade Representative Jamieson Greer.
Officials from the commerce ministry said the agreement also includes provisions to increase imports of US wheat, soybeans and liquefied natural gas (LNG). Bangladesh has also agreed not to impose tariffs on e-commerce, align with US intellectual property standards and support American proposals for reforms at the World Trade Organisation (WTO).
As part of broader efforts to ease trade pressure, Bangladesh recently agreed to purchase 25 aircraft from US manufacturer Boeing, a deal estimated to be worth Tk 30,000–35,000 crore.
According to the Export Promotion Bureau, the United States remains Bangladesh’s largest export destination. Last August, Washington had reduced proposed tariffs on Bangladeshi goods to 20 per cent from an earlier 37 per cent. Policymakers had hoped for a further reduction to 15 per cent.
Industry experts said the latest agreement would provide significant relief to the country’s apparel sector, which accounts for over 80 per cent of export earnings, contributes around 10 per cent to GDP and employs nearly four million workers, the majority of them women.
Officials also noted that recent US trade decisions involving India may have influenced the tariff revision, possibly reflecting broader geopolitical considerations. Vietnam has been assigned a 20 per cent tariff, while Pakistan, Cambodia and Indonesia face a 19 per cent rate.
The trade development comes just days before Bangladesh’s February 12 general election, which is expected to mark the end of the 18-month interim administration led by Yunus following the political upheaval that ousted the previous government.
