The United States has announced a mutual trade agreement (Agreement) with Bangladesh to strengthen bilateral relations and reduce reciprocal tariffs on Bangladeshi imports to 19 percent.
File photo of US President Donald Trump and Muhammad Yunus. (agency)Under the agreement, Bangladesh will open its markets to US industrial and agricultural products, buy cars and aircraft, and in return will be charged zero tariffs in the US on its textile and apparel products.
Dhaka will open its markets to US industrial and agricultural products, including chemicals, medical devices, machinery and motor parts, dairy products, poultry, fruits and tree nuts, a White House statement said. The trade agreement also calls for the import of automobiles and motorcycles, including their parts, from the US in addition to aircraft.
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In return, textile and apparel products manufactured in Bangladesh will get zero reciprocal tariff rate, the statement said.
“The United States will reduce reciprocal tariff rates, as originally set in Executive Order 14257 of April 2, 2025, to 19 percent on products originating in Bangladesh and identifying products from the Annex III (Potential Tariff Adjustments for Aligned Partners, or Executive Tariff Adjustments of September 41) list. 2025 (changing the scope of reciprocal tariffs and establishing mechanisms for implementing trade and security agreements) to achieve a zero percent reciprocal tariff rate,” a White House statement said.
Muhammad Yunus, chief adviser to Bangladesh’s interim government, said the United States was “committed to developing a mechanism” that would allow select Bangladeshi textile and apparel products made with US-grown cotton and man-made fibers to enter the US market at zero reciprocal tariffs.
What to know about the US-Bangladesh trade dealThe two sides also highlighted recent and planned trade deals, including aircraft procurement, roughly $3.5 billion in purchases of U.S. agricultural products, and an estimated $15 billion in U.S. energy product imports over 15 years.
Dhaka recently agreed to buy 25 aircraft from US aerospace giant Boeing at an estimated cost of Tk 30,000-35,000 crore ($2.46-2.87 billion) as part of a broader effort to reduce US tariffs.
As part of the deal, Bangladesh will purchase about $3.5 billion worth of agricultural products, including wheat, soybeans, cotton and corn.
Lutfe Siddiqui, Special Envoy for International Affairs to Bangladesh’s Chief Adviser Muhammad Yunus, praised the trade deal with the US, which brought down tariffs from the previous 37 percent.
“Exemplary teamwork and sheer hard work over several months, working round the clock across time zones. What started as 37% has now come down to 19% with additional benefits for select items,” said Siddiqui. India is also in the middle of a trade deal with the US, which will bring down reciprocal tariffs on Indian goods from 25 percent to 18 percent. Neighboring Pakistan also has a 19 percent reciprocal tariff.
