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US cuts Bangladesh tariffs to 19% in trade deal

Al Jazeera

US and Bangladesh set trade deal with tariffs at 19 percent

Trump White House

JOINT STATEMENT ON UNITED STATES  BANGLADESH AGREEMENT ON RECIPROCAL TRADE

Annex

FURTHER MODIFYING THE RECIPROCAL TARIFF RATES

SupriyaShrinate

priyankac19

USTradeRep

ChiefAdviserGoB

BBC News

Bangladesh secures lower US tariffs and exemptions for clothing goods

Trump Trade Representative

Andrew Ng

Foreign Policy

Mario Nawfal

University of Sydney

Yannise Jean

Gavin Baker 

Fast Company

"Trump's tariffs might actually create more demand for AI and robotics in the long term."

"Trump's tariffs will not only impact the electronics and automobile sectors, they will also create bottlenecks in the growing artificial intelligence industry."

"AI relies on hardware, and tariffs will slow down AI progress by restricting access to it."

Will The Trump Tariffs Stop/Pause Global AI Development?

The United States and Bangladesh signed a reciprocal trade agreement on Monday, reducing the tariff rate on Bangladeshi goods entering the U.S. market to 19%, down from the initial 37% rate, which the Trump administration later lowered to 20% in August.

The United States and Bangladesh signed a reciprocal trade agreement on Monday, reducing the tariff rate on Bangladeshi goods entering the U.S. market to 19%, down from the initial 37% rate, which the Trump administration later lowered to 20% in August.

Trade negotiations between the two countries began in April 2025, the same month that <a target="_blank" rel="noopener noreferrer nofollow" href="https://www.verity.news/story/2025/trump-set-to-unveil-major-tariff-plan-on-liberation-day">the U.S. imposed "Liberation Day" tariffs</a>, and spanned over nine months, with the deal signed just days before national elections in Bangladesh scheduled for Thursday.

Muhammad Yunus

Trade negotiations between the two countries began in April 2025, the same month that the U.S. imposed "Liberation Day" tariffs, and spanned over nine months, with the deal signed just days before national elections in Bangladesh scheduled for Thursday.

Under the agreement, certain textile and apparel products from Bangladesh made with U.S.-produced cotton and artificial fiber will be exempt from tariffs upon entry into the U.S. market. The U.S. will determine the volume of this tariff-free material in relation to the quantity of American textile exports to Bangladesh.

Under the agreement, certain textile and apparel products from Bangladesh made with U.S.-produced cotton and artificial fiber will be exempt from tariffs upon entry into the U.S. market. The U.S. will determine the volume of this tariff-free material in relation to the quantity of American textile exports to Bangladesh.

In return, Bangladesh committed to provide "significant preferential market access" for American industrial and agricultural goods, including chemicals, medical devices, machinery, motor vehicles and parts, as well as beef, poultry and dairy products.

In return, Bangladesh committed to provide "significant preferential market access" for American industrial and agricultural goods, including chemicals, medical devices, machinery, motor vehicles and parts, as well as beef, poultry and dairy products.

The agreement also requires Bangladesh to accept U.S. federal motor and emissions standards, recognize U.S. Food and Drug Administration certifications and remove import restrictions on U.S. remanufactured goods.

The agreement also requires Bangladesh to accept U.S. federal motor and emissions standards, recognize U.S. Food and Drug Administration certifications and remove import restrictions on U.S. remanufactured goods.

In addition, Bangladesh made various commitments to uphold international labor laws, maintain high levels of environmental protection and enforce anti-corruption laws, among others. The U.S., meanwhile, pledged to consider supporting investment in "critical" Bangladeshi sectors in collaboration with the private sector.

In addition, Bangladesh made various commitments to uphold international labor laws, maintain high levels of environmental protection and enforce anti-corruption laws, among others. The U.S., meanwhile, pledged to consider supporting investment in "critical" Bangladeshi sectors in collaboration with the private sector.

The U.S.-Bangladesh trade agreement is a significant win for their bilateral economic relations and strategic partnership. Crucially, the agreement is most beneficial for producers based in both nations, with the U.S. agreeing to cut tariffs on Bangladeshi goods and textiles. In return, American goods will gain expanded market access and new opportunities in Bangladesh.

The U.S.-Bangladesh trade agreement is a significant win for their bilateral economic relations and strategic partnership. Crucially, the agreement is most beneficial for producers based in both nations, with the U.S. agreeing to cut tariffs on Bangladeshi goods and textiles. In return, American goods will gain expanded market access and new opportunities in Bangladesh.

Pro-establishment narrative

This agreement is nothing short of a slap in the face for India. By granting Bangladesh zero-tariff access to the U.S. for textiles using American cotton or fibre, the deal fatally undermines both India's garment industry, which is still subject to 18% tariffs, and the cotton industry, with Bangladesh now incentivized to reject Indian-grown cotton in favor of its American counterpart.

This agreement is nothing short of a slap in the face for India. By granting Bangladesh zero-tariff access to the U.S. for textiles using American cotton or fibre, the deal fatally undermines both India's garment industry, which is still subject to 18% tariffs, and the cotton industry, with Bangladesh now incentivized to reject Indian-grown cotton in favor of its American counterpart.

Supriya Shrinate

Priyanka Chaturvedi

Pro-India narrative

There is a 95% chance that customs duties revenue to the federal government will increase from $80 billion in fiscal year 2023 to $160 billion in fiscal year 2026 (in 2023 dollars), according to the Metaculus prediction community.

There is a 95% chance that customs duties revenue to the federal government will increase from $80 billion in fiscal year 2023 to $160 billion in fiscal year 2026 (in 2023 dollars), according to the Metaculus prediction community.

US-Bangladesh Trade Deal Cuts Tariffs to 19%

The Spin

Pro-establishment narrative

Pro-India narrative

Metaculus Prediction

The Controversies

Company

Policy

Ng

Establishment split

CRITICAL

PRO

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US-Bangladesh Trade Deal Cuts Tariffs to 19%

The Spin

Pro-establishment narrative

Pro-India narrative

Metaculus Prediction

The Controversies

Company

Policy

Ng

Establishment split

CRITICAL

PRO

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