The US has lowered its tariff on imports from Bangladesh to 20%, down from the previous steep rate of 35%.
The US has reduced its reciprocal tariff rate on imports from Bangladesh to 20%, down from the previous 35%, following intense final negotiations in Washington.
The White House confirmed the decision on 1 August 2025. The revised rate applies after the addition of a 16% average adjustment during US customs clearance, in line with procedures for all countries.
The deal was finalised just hours before a deadline set by President Donald Trump. Bangladeshi officials secured the agreement through discussions with the Office of the United States Trade Representative. The move is expected to benefit Bangladesh’s key export sectors, especially readymade garments, by maintaining price competitiveness in the US market.
Government representatives and trade analysts welcomed the change. Commerce Adviser Sk Bashir Uddin noted that while a lower rate had been expected, the 20% tariff would preserve Bangladesh’s competitive position.
Chief Adviser Prof Muhammad Yunus called the outcome a “decisive diplomatic victory” and praised the negotiating team’s efforts since February.
The tariffs on Bangladeshi imports will take effect on 8 August 2025, seven days after President Trump’s order.
Earlier, Bangladesh formally submitted its position paper to the Office of the United States Trade Representative (USTR) on 22 July 2025, requesting that the final round of tariff negotiations commence on or after 26 July.
