- The US has reduced import duties on Bangladesh to 19% under a new tariff agreement
- Bangladesh's tariffs were previously as high as 37%, lowered to 20% in August 2025
- Certain textiles and apparel from Bangladesh using US inputs will face zero tariffs
The United States has trimmed the import duties levied on Bangladesh to 19%, in accordance with the reciprocal tariff agreement inked between the two countries on Monday.
While Dhaka was initially hit with tariffs as high as 37%, the same was lowered to 20% in August 2025, and has now been further reduced to 19%, according to a statement issued by Muhammad Yunus, the chief adviser to the interim government of Bangladesh.
Bangladesh, US sign reciprocal tariff agreement
— Chief Adviser of the Government of Bangladesh (@ChiefAdviserGoB) February 9, 2026
WASHINGTON DC, February 9: The Agreement on Reciprocal Tariff between Bangladesh and the United States was signed on Monday. On the Bangladesh side, the signatories were Commerce Adviser Sheikh Bashir Uddin and National Security…
Yunus highlighted that select textiles and apparel goods will attract zero tariffs under Washington's commitment to establishing a mechanism which will use US produced cotton and man-made fiber.
"The reduction of reciprocal tariff will grant further advantage to our exporters, while zero reciprocal tariff on specific textile and apparel exports from Bangladesh using US inputs will give substantial added impetus to our garments sector", Yunus quoted Bangladesh's chief negotiator Mahbubur Rahman as saying.
Timing for the agreement is key as it comes two days before the Dhaka goes to polls to elect its next government, following ouster of Prime Minister Sheikh Hasina by a student-led movement 18 months ago.
Notably, the pact also comes in the aftermath of India's trade deal with the United States and release of its fine print on Feb. 7. As part of the agreement, Washington bumped down tariffs to 18% from a whopping 50% on a variety of Indian-originating goods, including textiles, apparel, leather, footwear and organic chemicals.
The reduction of tariffs to 18% was expected to provide Indian exporters an edge over their competitors in neighbouring countries like Bangladesh.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
