Last Updated on February 12, 2026 12:44 am by BIZNAMA NEWS
Zakir Hossain from Dhaka
The United States has agreed to cut reciprocal tariffs on Bangladeshi exports from 20 percent to 19 percent and work towards zero tariffs on certain textile and apparel goods, giving a boost to the world’s second-largest garment exporter.
The agreement, signed Monday, allows Bangladeshi garments made with US cotton and man-made fibre to enter the US duty-free under a volume-linked mechanism, according to a White House statement. “This will give substantial added impetus to our garments sector,” said Bangladesh National Security Adviser Khalilur Rahman.
Textiles account for about 80 percent of Bangladesh’s exports, an industry recovering after political upheaval in 2024. Bangladesh exported $8.4 billion of goods to the US in 2024, while importing $2.2 billion. Interim leader Muhammad Yunus said the deal would “fit Bangladesh on US policy,” adding that some garments would face zero tariffs once notifications are issued. US brands sourcing from Bangladesh include Walmart, Target, Levi Strauss, Fruit of the Loom and VF Corp.
Officials said the zero-duty provision gives Bangladesh an edge over India, which faces an 18 percent tariff under its own interim deal with Washington. “The competitiveness of our garments industry will be in a stronger position than India’s,” a senior Bangladeshi official said, estimating US raw material imports could rise by $1 billion. Indian trade economist Biswajit Dhar said Bangladesh’s concession removes India’s expected advantage. “That advantage in labour-intensive sectors is now gone,” he said.
