US Reduces Tariffs on Bangladeshi Apparel
The United States has agreed to lower tariffs on Bangladeshi clothing as part of a new trade deal announced on Monday. Under the agreement, Washington reduced its tariff rate on Bangladesh from 20 percent to 19 percent.
In addition, the US will allow certain Bangladeshi garments and textile products to enter its market without tariffs. These exemptions apply to clothing made with American cotton and US produced man made textiles.
Officials said the volume of tariff free goods will depend on how much textile material the United States exports to Bangladesh.
Strong Boost for Bangladesh’s Key Industry
The apparel sector drives Bangladesh’s economy. It accounts for more than 80 percent of the country’s export earnings and provides jobs to around four million workers.
Bangladesh ranks as the world’s second largest exporter of clothing after China. Because of this, changes in US tariffs have a direct impact on its economy.
Talks between Dhaka and Washington continued for months. Bangladesh pushed for relief after President Donald Trump imposed broad tariffs on global trading partners in April last year.
Bangladesh Opens Markets to US Goods
In return for lower tariffs, Bangladesh agreed to give American products greater access to its market. The country will reduce barriers for US agricultural and industrial goods.
These include chemicals, medical equipment, vehicle parts, soy products, and meat. Bangladesh will also recognize US food safety, drug regulations, and vehicle emission standards. This step should make it easier for American companies to sell products in the country.
The White House described the agreement as a move that strengthens economic ties and offers both sides better access to each other’s markets.
Broader Commitments and Political Context
Bangladesh also pledged to respect international labour rights and increase environmental protections. The government confirmed it will continue major purchases of American agriculture products, aircraft, and energy supplies worth billions of dollars.
The announcement comes just days before Bangladesh heads to general elections on Thursday. The country has operated under an interim government since 2024. Former Prime Minister Sheikh Hasina fled to India after protests and a deadly crackdown forced her from power.
Regional Competition with India
The new US tariff rate places Bangladesh close to India, which now faces an 18 percent US levy. Both countries compete strongly in clothing, footwear, and agricultural exports.
When the US first introduced reciprocal tariffs in April 2025, it imposed a 25 percent levy on India. Bangladesh initially faced a much higher 37 percent tariff. The new agreement marks a significant reduction and gives Bangladesh a stronger position in the regional export market.
