US Cuts Bangladesh Tariffs To 19%, Offers Duty-Free Access For Select Garments
Bangladesh has secured a reduction in US tariffs on its exports to 19 percent under a new bilateral trade agreement, down from levels of up to 37 percent initially proposed last April. The deal also creates a pathway for selected Bangladeshi garments made with US-produced materials to enter the American market duty-free.
Interim Chief Adviser Muhammad Yunus said the agreement followed nine months of negotiations, during which Dhaka first reduced the proposed rate to 20 percent last August before achieving the latest cut. He described the outcome as a key step in protecting jobs and strengthening Bangladesh’s position in the global textile supply chain.
According to an official statement, the agreement was signed for Bangladesh by Commerce Adviser Sheikh Bashir Uddin and National Security Adviser Khalilur Rahman, and for the United States by Trade Representative Ambassador Jamieson Greer. The White House said both sides also agreed to address non-tariff barriers affecting trade.
The readymade garments (RMG) sector accounts for more than 80 percent of Bangladesh’s export earnings, employs about four million workers, most of them women and contributes roughly 10 percent to GDP.
Industry leaders said the lower tariff rate should help exporters remain competitive in the US, one of their largest markets, at a time when factories are grappling with higher energy and production costs, currency volatility and tighter compliance requirements.
The agreement comes as Bangladesh prepares for national elections this week after being governed by an interim administration since August 2024, when former prime minister Sheikh Hasina left the country and has remained in India.
Pre-election tensions have risen, with reports of fresh violence leaving more than 40 people injured in clashes between rival groups. The interim government has sought to underscore economic stability ahead of the vote, with trade policy a central element of that effort.
