US slashes Bangladesh tariff to 19%, exempts US-material garments
What's the story
The United States and Bangladesh have signed a reciprocal tariff agreement, reducing US tariffs on Bangladeshi exports from 20% to 19%. The deal was announced in a joint statement released by the White House on Monday. Muhammad Yunus, chief advisor of Bangladesh's interim government, said the US will work toward zero tariffs for certain textiles and apparel made with American cotton and man-made fiber.
Trade commitments
Deal includes Bangladesh's purchase of $15 billion in energy products
Under the deal, Bangladesh will buy $15 billion in US energy products and $3.5 billion in agricultural goods. Biman Bangladesh Airlines plans to purchase 14 Boeing aircraft with options for more. The agreement also includes purchasing US military equipment and limiting purchases from certain countries. It was finalized after nine months of negotiations that started in April 2025.
Diplomatic praise
US ambassador praises Bangladesh's commerce adviser
US Ambassador Jamieson Greer praised Bangladesh's Commerce Adviser Sheikh Bashir Uddin for his role in achieving a "balanced trading relationship." He said, "Today's signing of the Agreement on Reciprocal Trade with Bangladesh is the first in South Asia and marks a meaningful step forward in opening markets." The deal is expected to boost opportunities for American exporters while strengthening economic partnerships.
Industry impact
Expected tariff exemptions to boost Bangladesh's textile industry
The deal is expected to have a positive impact on Bangladesh's textile industry, which accounts for about 80% of its exports. The sector has been recovering after being affected by a student-led revolution in 2024. National Security Adviser Khalilur Rahman said the expected tariff exemptions would give "substantial added impetus" to the garments sector.