Bangladesh will finalise a reciprocal tariff agreement with the US today, aimed at reducing trade imbalances and securing continued access for its exports. The deal offers tariff relief for garments made with American raw materials and includes commitments to import US products such as wheat, soybeans, fuel, and aircraft.
Bangladesh is scheduled to finalise a reciprocal tariff deal with the US on 8 February 2026 in Washington, intended to reduce trade imbalances and ensure ongoing access for Bangladeshi exports to the US market.
The deal aims to address a trade imbalance, as Bangladesh exports about USD 8 billion to the US annually while importing roughly USD 2 billion.
Under the agreement, garments made in Bangladesh using American raw materials, such as cotton, will receive proportional tariff relief. For example, if a T-shirt contains 70% American cotton and yarn by value, that portion will be exempt from the 20% reciprocal tariff currently applied.
Officials have said the US may further lower the reciprocal tariff rate, although the exact reduction has not been disclosed. The arrangement is expected to bring significant relief to Bangladesh’s garment sector, which accounts for nearly 95% of its exports to the US.
Bangladesh has also committed to importing more American products, including wheat, soybeans, liquefied petroleum gas, and aircraft from Boeing. An agreement has been signed to import 3.5 million tonnes of wheat over five years, with around 660,000 tonnes already purchased.
The signing ceremony will be held in a hybrid format. Commerce Adviser Sk Bashir Uddin and Commerce Secretary Mahbubur Rahman will attend virtually, while a small delegation of senior officials will travel to Washington. Secretary Rahman said, “We will send the documents to the US as only a few of our officials will fly there to attend the deal signing ceremony.”
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said the deal has been under negotiation with the US Trade Representative for over six months. The association urged the Ministry of Commerce to complete the signing on schedule so exporters can prepare to benefit from preferential access using US cotton.
