U.S. trims tariffs on Bangladesh to 19%

Bangladesh on Monday (February 9, 2026) secured a reduced 19% tariff under a trade agreement with the United States that would exempt some textiles and garments manufactured with U.S. materials, interim government chief Muhammad Yunus said.

In an X post, he said Washington had “committed to establishing a mechanism for certain textile and apparel goods from Bangladesh using U.S.-produced cotton and man-made fibre to receive zero reciprocal tariff in (the) U.S. market”.

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

According to Commerce Secretary Mahbubur Rahman, Bangladesh’s key export-earning ready-made garments (RMG) made from cotton and synthetic fibres imported from the U.S. would enjoy zero reciprocal duty under the deal.

He said the agreement was signed in Washington by Commerce Adviser Sheikh Bashir Uddin and U.S. Trade Representative (USTR) Jamieson Greer.

Commerce Ministry officials said apart from cotton, the deal includes provisions for importing U.S. wheat, soybean, and LNG; refraining from imposing tariffs on e-commerce; complying with US-mandated intellectual property rights standards; and supporting US proposals for reforming the World Trade Organisation (WTO).

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

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

The South Asian nation in August last year secured a reduction in U.S. tariffs on its exports to 20%, down from 37% initially proposed by Washington.

Bangladeshi policymakers earlier said they expected the tariff could be brought down to 15%.

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

The U.S. earlier this month announced lowering tariffs to 18% from 50% for India, seeking New Delhi to halt Russian oil purchases and lower trade barriers.

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The Commerce Secretary said the recently concluded U.S.-India trade deal might have influenced Washington’s decision to cut the tariff “possibly due to geopolitical considerations”.

Bangladesh’s closest competitor, Vietnam, received a 20% reciprocal tariff, while Pakistan, Cambodia and Indonesia have also been subjected to a 19% tariff.

The development comes as Bangladesh heads for the February 12 general election to choose new leadership and bring an end to the 18-month Yunus-led interim regime, which took charge after the fall of Sheikh Hasina’s Awami League government following a violent student-led street campaign dubbed the July Uprising.