US reduced tariffs on Bangladesh to 19%

Bangladesh on Monday (February 9, 2026) has secured a reduced 19% tariff under a trade deal with the United States that exempts certain textiles and clothing made from US materials, interim government chief Muhammad Yunus said.

In the X post, Washington said it “commits to establishing a mechanism for certain textile and apparel goods from Bangladesh using US-produced cotton and man-made fiber to obtain zero reciprocal tariffs in the US market”.

Mr Yunus, known for his pro-US stance, said the deal was reached after nine months of talks since April last year.

According to Commerce Secretary Mahbubur Rahman, Bangladesh’s major export-earning readymade garments (RMG) made from cotton and synthetic fibers imported from the US will enjoy zero reciprocal duty under the agreement.

The agreement was signed in Washington by Trade Adviser Sheikh Bashir Uddin and US Trade Representative (USTR) Jamieson Greer, he said.

Commerce Ministry officials said that apart from cotton, the agreement includes provisions for US imports of wheat, soybeans and LNG; preventing the imposition of tariffs on e-commerce; complying with US-mandated intellectual property rights standards; and supporting US proposals to reform the World Trade Organization (WTO).

Bangladesh recently agreed to buy 25 aircraft from US aerospace giant Boeing at an estimated cost of Tk 30,000-35,000 crore (in Bangladeshi currency) as part of broader efforts to ease US tariffs.

According to Bangladesh’s Export Promotion Bureau (EPB), the US remains Bangladesh’s largest export market.

In August last year the South Asian nation cut US tariffs on its exports to 20%, down from the 37% initially proposed by Washington.

Bangladeshi policymakers had previously expected the tariff to drop to 15%.

Trade analysts, however, said the agreement provided much-needed relief to Bangladesh’s apparel exporters, as the RMG sector accounts for more than 80% of its export earnings and employs nearly 4 million workers, mostly women, and contributes 10% to the gross domestic product (GDP).

The US announced earlier this month Reduction of tariff for India from 50% to 18%is urging New Delhi to stop buying Russian oil and lower trade barriers.

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The recently concluded US-India trade deal may have influenced Washington’s decision to cut tariffs “perhaps due to geopolitical considerations”, the commerce secretary said.

Bangladesh’s closest competitor, Vietnam, receives a 20% reciprocal tariff, while Pakistan, Cambodia and Indonesia are also subject to a 19% tariff.

The development comes as Bangladesh heads to a February 12 general election to elect a new leadership and end the 18-month interim rule led by Yunus, who took over after the fall of Sheikh Hasina’s Awami League government following a violent student-led street campaign known as the July uprising.