The USA is lowering customs tariffs to facilitate imports from Bangladesh.

Historic Trade Agreement Between the USA and Bangladesh

The USA plans to reduce the customs duty rate on imports from Bangladesh to 19% as a result of a trade agreement with this country. Additionally, it is expected that tariffs on certain products will be reduced to zero.

Details of the Mutual Trade Agreement

According to a statement from the White House, the USA and Bangladesh have reached an agreement on a Mutual Trade Agreement aimed at strengthening bilateral economic relations.

Concessions from Bangladesh

Under the agreement, Bangladesh has committed to providing broad market access for American-made products in several categories including chemicals, medical devices, machinery, and motor vehicles.

Obligations of the USA

The USA will establish a mechanism that offers a 0% customs duty on certain textile and apparel products imported from Bangladesh. This mechanism will be determined in relation to the export volume of textile inputs from the USA to Bangladesh.

Non-Tariff Barriers and Improvements

Additionally, the two countries have agreed to address non-tariff barriers affecting trade and investment. Bangladesh has provided assurances that it will accept motor vehicles and medical devices that meet US standards.

Environmental and Social Responsibilities

Bangladesh has made commitments regarding respect for labor rights and the effective implementation of environmental protection laws. Such measures are an important step towards increasing the sustainability of trade.

Future Goals

Looking ahead, the USA and Bangladesh are reported to be working on relations that include $15 billion worth of energy purchases over the next 15 years. Both countries are expected to swiftly approve the Agreement in line with their respective procedures.

Another important point to remember is that the US administration announced a 37% tariff on products from Bangladesh effective April 2, 2025. However, as a result of negotiations, this rate was reduced to 20% effective July 31, 2025.