Bangladesh, US sign reciprocal tariff agreement, cut duty to 19pc

This brings the overall tariff down from 35 percent to 34 percent

Bangladesh has signed a tariff agreement with the United States after nine months of negotiations, reducing the supplementary duty by one percentage point.

The Chief Advisor’s Office announced on Monday night that under the new deal, Bangladeshi exports to the US market will face a 19 percent supplementary duty, bringing the overall tariff down from 35 percent to 34 percent.

The government had been optimistic about securing concessions, having already taken steps to improve trade relations, including purchasing Boeing aircraft and increasing imports of wheat, cotton and other goods.

Despite these measures, officials acknowledged that the Trump administration was not persuaded to cut tariffs further.

“Although the duty has not fallen significantly, we expect Bangladeshi products will gain additional benefits in the US market,” the interim government said.

The agreement was signed online by Commerce Advisor Sheikh Bashir Uddin, National Security Advisor Khalilur Rahman and US Trade Representative Ambassador Jamieson Greer.

President Donald Trump, in his second term, announced steep tariffs on more than 100 countries on Apr 2, 2025, imposing an additional 37 percent duty on Bangladeshi goods.

Following negotiations, the rate was reduced to 20 percent and took effect on Aug 1, adding to the existing 15 percent tariff.

Since then, Bangladesh has sought to lower the burden, leading to Monday’s deal.