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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

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USTradeRep

ChiefAdviserGoB

BBC News

Bangladesh secures lower US tariffs and exemptions for clothing goods

Trump Trade Representative

Metaculus

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 as "<a target="_blank" rel="noopener noreferrer nofollow" href="https://www.verity.news/story/2025/trump-set-to-unveil-major-tariff-plan-on-liberation-day">Liberation Day</a>," and spanned over nine months, with the deal signed just days before national elections in Bangladesh scheduled for February 12.

Muhammad Yunus

Trade negotiations between the two countries began in April 2025, the same month as "Liberation Day," and spanned over nine months, with the deal signed just days before national elections in Bangladesh scheduled for February 12.

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.

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The United States and Bangladesh signed a reciprocal trade agreement on Monday that reduces the tariff rate on Bangladeshi goods entering the US market to 19 percent, down from an initial rate of 37 percent that was later lowered to 20 percent in August.

The United States and Bangladesh signed a reciprocal trade agreement on Monday that reduces the tariff rate on Bangladeshi goods entering the US market to 19 percent, down from an initial rate of 37 percent that was later lowered to 20 percent in August.

Under the agreement, certain textile and apparel products from Bangladesh made using US-produced cotton and man-made fiber will receive zero tariffs when entering the US market, with the volume determined in relation to the quantity of textile exports from the United States.

Under the agreement, certain textile and apparel products from Bangladesh made using US-produced cotton and man-made fiber will receive zero tariffs when entering the US market, with the volume determined in relation to the quantity of textile exports from the United States.

Bangladesh committed to provide significant preferential market access for US industrial and agricultural goods, including chemicals, medical devices, machinery, motor vehicles and parts, poultry, pork, seafood, rice, corn and cereal grains.

Bangladesh committed to provide significant preferential market access for US industrial and agricultural goods, including chemicals, medical devices, machinery, motor vehicles and parts, poultry, pork, seafood, rice, corn and cereal grains.

The agreement requires Bangladesh to accept US vehicle safety and emissions standards, recognize US Food and Drug Administration certifications, and remove import restrictions on remanufactured goods to address non-tariff barriers affecting bilateral trade.

The agreement requires Bangladesh to accept US vehicle safety and emissions standards, recognize US Food and Drug Administration certifications, and remove import restrictions on remanufactured goods to address non-tariff barriers affecting bilateral trade.

Bangladesh's ready-made garment industry, worth $38.48 billion in 2024, accounts for more than 80 percent of total export earnings and employs about four million workers, with the US being Bangladesh's biggest single destination for apparel exports at $7.34 billion in 2024.

Bangladesh's ready-made garment industry, worth $38.48 billion in 2024, accounts for more than 80 percent of total export earnings and employs about four million workers, with the US being Bangladesh's biggest single destination for apparel exports at $7.34 billion in 2024.

The trade negotiations between the United States and Bangladesh lasted more than nine months, beginning in April 2025, with the agreement signed just four days ahead of national elections scheduled for February 12.

The trade negotiations between the United States and Bangladesh lasted more than nine months, beginning in April 2025, with the agreement signed just four days ahead of national elections scheduled for February 12.

The US-Bangladesh trade agreement represents a major win for bilateral economic relations, slashing tariffs to 19 percent and establishing zero-tariff access for Bangladeshi textiles using American cotton and fibers. This historic deal expands market access for American agricultural exports while granting Bangladesh unprecedented advantages in the garment sector. Enhanced trade flows benefit both nations' producers and strengthen strategic economic partnerships.

The US-Bangladesh trade agreement represents a major win for bilateral economic relations, slashing tariffs to 19 percent and establishing zero-tariff access for Bangladeshi textiles using American cotton and fibers. This historic deal expands market access for American agricultural exports while granting Bangladesh unprecedented advantages in the garment sector. Enhanced trade flows benefit both nations' producers and strengthen strategic economic partnerships.

Bangladesh just secured zero-tariff access for textiles using US inputs while Indian exporters face 18 percent tariffs on the same goods — a devastating blow to India's garment industry. This deal will push Bangladesh away from buying Indian cotton toward American sources, directly harming Indian farmers and textile hubs like Tirupur and Surat that employ millions.

Bangladesh just secured zero-tariff access for textiles using US inputs while Indian exporters face 18 percent tariffs on the same goods — a devastating blow to India's garment industry. This deal will push Bangladesh away from buying Indian cotton toward American sources, directly harming Indian farmers and textile hubs like Tirupur and Surat that employ millions.

Supriya Shrinate

Priyanka Chaturvedi

US-Bangladesh Trade Deal Cuts Tariffs to 19 Percent

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United States of America

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.

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.

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.

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%

US-Bangladesh Trade Deal Cuts Tariffs to 19 Percent%

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