US slashes Bangladesh tariffs to 19%, zero reciprocal tariffs on garments

PTC News Desk: The United States has reduced reciprocal tariffs on Bangladeshi imports to 19 per cent under a new bilateral trade deal, which also allows duty-free entry for certain textile and apparel products manufactured using materials sourced from the US, Bangladesh interim chief adviser Muhammad Yunus announced on Monday. The tariff cut comes after nine months of negotiations with Washington. Initially, the US had proposed imposing tariffs as high as 37 per cent on Bangladeshi exports in April, but after extensive discussions, Bangladesh managed to bring the rate down to 20 per cent in August last year, and now to 19 per cent.

Yunus called the agreement a significant move to safeguard employment and boost Bangladesh’s standing in the global textile industry. An official statement from Dhaka said the deal was signed by Commerce Adviser Sheikh Bashir Uddin and National Security Adviser Khalilur Rahman on behalf of Bangladesh, while US Trade Representative Ambassador Jamieson Greer signed for the United States.

The ready-made garments industry forms the foundation of Bangladesh’s economy, generating over 80 per cent of the country’s export revenue. The sector provides jobs to nearly four million workers, mostly women from rural and economically weaker sections, and contributes roughly 10 per cent to the country’s GDP.

Industry representatives believe the reduced tariff rate will help Bangladeshi exporters remain competitive in the US, one of their biggest markets. Many garment manufacturers have faced challenges in recent years due to increasing production expenses, rising energy costs, currency fluctuations and stricter compliance rules from global buyers.

Earlier this month, US President Donald Trump also announced a trade agreement with India that lowered tariffs from 50 per cent to 18 per cent.