US slashes tariff on Bangladeshi goods to 20%

In a major boost for Bangladesh’s export sector, the United States has reduced the tariff on goods imported from Bangladesh to 20 percent, down from the previously announced 35 percent.

The adjustment was announced under a new executive order signed Thursday by President Donald Trump. The revised order imposes reciprocal tariffs ranging from 10% to 41% on imports from multiple countries, as part of Washington’s broader strategy to rebalance trade.

The reduced tariff is expected to strengthen Bangladesh’s position in the U.S. market, particularly in ready-made garments (RMG) and textiles—industries that form the backbone of the country's export economy.

According to officials, this change follows intense diplomatic negotiations between Dhaka and Washington, concluding in a final round of meetings in the U.S. capital.

The Bangladeshi delegation was led by Commerce Adviser SK Bashir Uddin, accompanied by National Security Adviser Khalilur Rahman, Commerce Secretary Mahbubur Rahman, and senior officials from the Ministry of Commerce.

The U.S. side was represented by Brendan Lynch, Assistant United States Trade Representative (USTR), along with trade and tariff policy officials.

While the White House has not clarified whether the new tariffs are permanent or part of an interim trade measure, the news has been welcomed by Bangladeshi industry leaders.

According to the order, imports from India will face a 25 per cent tariff, while goods from Taiwan and Sri Lanka will be subject to a 20 per cent duty. South Africa will be hit with a 30 per cent tariff.

Other countries affected by the decision include Pakistan (19 per cent), Afghanistan (15 per cent), Brazil (10 per cent), Indonesia (19 per cent), Malaysia (19 per cent), Myanmar (40 per cent), the Philippines (19 per cent), and Vietnam (20 per cent).

In a social media post, BTMA President Showkat Aziz Russell said, “The United States has set the tariff on Bangladeshi products at 20 per cent, which is on par with or slightly more favourable than that imposed on many other countries.”

He attributed this significant outcome to the relentless efforts of Adviser SK Bashir Uddin and his dedicated team, both in Bangladesh and in Washington, D.C.

Russell noted that the adviser is likely to extend his stay in the US, as he believes there is still more to achieve. Remarkably, he is perhaps the only negotiator to have boldly raised the issue of narrowing up to 75 per cent of the trade deficit between Bangladesh and the United States—within the shortest possible time.

A BTMA delegation and prominent business leaders were also present during the negotiation process in Washington.

“No other country has taken such a bold step in trade negotiations with the US, which uniquely positions Bangladesh to seek even greater preferential access to the American market,” added the BTMA President.