The United States has reduced its reciprocal tariff rate on goods from Bangladesh to 20%, a significant decrease from the previously threatened 35%. This landmark decision was announced by the White House today, following a final round of intense negotiations in Washington D.C. between Bangladeshi officials and the Office of the United States Trade Representative (USTR).
According to a press statement from the Chief Adviser’s Press Wing, the 20% tariff rate secured by Bangladesh is comparable to that of its key competitors in the apparel sector, such as Sri Lanka, Vietnam, Pakistan, and Indonesia, which received rates between 19% and 20%. This outcome ensures that Bangladesh’s relative competitiveness in apparel exports remains unaffected in the crucial U.S. market.
In contrast, India received a higher 25% tariff rate after failing to reach a comprehensive agreement with the U.S.
Dr. Khalilur Rahman, Bangladesh’s National Security Adviser and lead negotiator, hailed the deal as a “decisive diplomatic victory.” He emphasized the strategic approach taken by the Bangladeshi team, stating, “We negotiated carefully to ensure that our commitments aligned with our national interests and capacity.” He added that while protecting the apparel industry was a top priority, the team also focused its purchase commitments on U.S. agricultural products. “This supports our food security goals and fosters goodwill with U.S. farming states,” Dr. Rahman said.
“Today, we successfully avoided a potential 35% reciprocal tariff. That’s good news for our apparel sector and the millions who depend on it. We’ve also preserved our global competitiveness and opened up new opportunities to access the world’s largest consumer market,” Dr. Rahman concluded. Chief Adviser Professor Muhammad Yunus also congratulated the negotiators, stating that the deal “underscores Bangladesh’s rising strength on the global stage.”
The announcement comes just ahead of President Donald Trump’s August 1 deadline for finalizing bilateral trade agreements with dozens of countries. The President today announced new tariff rates, up to 41%, on imports from 70 countries. The agreements, which were the subject of a three-month negotiation period, extended beyond simple tariff adjustments to include domestic policy reforms and address broader economic and national security concerns. As part of the negotiations, countries were required to make explicit commitments to purchase U.S. goods to help narrow trade deficits. President Trump’s executive order made it clear that each country’s final tariff rate would reflect the depth of its commitment across all these areas.
With the new tariffs now in effect as of August 1, Bangladeshi exporters will pay their regular duties plus an additional 20% reciprocal tariff to access the U.S. market. The U.S. is the single largest market for Bangladesh’s ready-made garment (RMG) exports, which total approximately $8 billion annually.
