US-Bangladesh trade deal: What it means for both countries
The US just lowered tariffs on Bangladeshi goods from 20% to 19%, making it a bit easier for Bangladesh's massive garment industry—which accounts for roughly 80% of the country's exports, while Bangladesh exported around $8.4 billion worth of goods to the United States in 2024—to do business.
The agreement, signed on Monday in early February 2026 (exact date not specified in the source), is all about boosting trade and helping both countries benefit.
For Bangladesh
Here's a bonus: the United States has committed to establish a mechanism allowing a to-be-specified volume of Bangladeshi textiles and apparel that use US-produced cotton or man-made fiber inputs to receive a zero reciprocal tariff rate, subject to further specification and domestic implementation.
There's also a list of specific products (check Annex III if you're curious) that qualify for this sweet deal.
For Bangladesh
Bangladesh agreed to open its doors wider for American products—think chemicals, medical devices, vehicles, tech gear, soybeans, and even beef.
They'll also stick to US safety standards and keep up with labor rights and environmental rules as part of the package.