The United States has reduced its tariff on Bangladeshi goods from 20% to 19%

The United States has lowered its reciprocal tariff on Bangladeshi exports from 20 percent to 19 percent after the two countries signed a new trade agreement late last night aimed at deepening economic ties.

Under the agreement, the US will provide duty-free or reduced-duty access to about 2,500 Bangladeshi products, while Bangladesh will extend similar market access to roughly 4,400 US goods. Bangladesh will gradually expand duty-free access for additional American products over the next decade, Commerce Secretary Mahbubur Rahman told The Daily Star following the signing ceremony, which was held in a hybrid format.

Garments produced using US cotton will receive zero-duty entry into the American market, along with pharmaceuticals, fisheries products, particle board and selected food items.

The agreement was signed on behalf of Bangladesh by Commerce Adviser Sheikh Bashir Uddin and National Security Adviser Khalilur Rahman, and by US Trade Representative Ambassador Jamieson Greer for the United States. Negotiations began in April last year and continued for more than nine months.

In a statement, the Chief Adviser’s Office said Ambassador Greer praised Chief Adviser Professor Muhammad Yunus for his leadership, noting that the agreement would align Bangladesh more closely with US trade policy.

Describing the deal as “a historic new phase in bilateral trade relations,” Adviser Bashir Uddin said it would significantly expand market opportunities. NSA Khalilur Rahman added that the tariff cut and zero-duty access for textiles made with US inputs would give Bangladeshi exporters a major boost.

The agreement was approved by the Council of Advisers yesterday and will come into force once both sides issue formal notifications.

The deal builds on earlier tariff adjustments. In April last year, US President Donald Trump imposed a 37 percent reciprocal tariff on Bangladeshi exports, which was later reduced to 20 percent following negotiations.

As part of broader trade commitments, Bangladesh has pledged to purchase 25 Boeing aircraft, with 14 deals currently being finalised, valued between Tk 30,000 crore and Tk 35,000 crore. The country will also step up imports of US cotton, soybeans, liquefied petroleum gas and other products.

Previously, Bangladesh agreed to import 3.5 million tonnes of US wheat over five years, of which 660,000 tonnes have already been purchased.

According to data from the US Trade Representative, bilateral trade in goods and services reached $12.4 billion in 2024, a 3 percent increase from the previous year. Bangladesh exported $8.4 billion worth of goods to the US, while imports from the US stood at $2.3 billion, resulting in a trade deficit of $6.1 billion.