Bangladesh secures 19% US tariff and exemption for some apparel made with US material

Bangladesh secures 19% US tariff and exemption for some apparel made with US material

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Workers operate at the sewing section of a factory, in Narayanganj

Workers operate at the sewing section of a factory, in Narayanganj, Bangladesh, November 18, 2025. REUTERS/Mohammad Ponir Hossain

Reuters

February 10, 2026 1 min read

Feb 9 (Reuters) - Bangladesh has secured a reduced 19% U.S. tariff under a trade agreement signed between the two ​countries on Monday that would exempt some textiles and garments ‌manufactured with U.S. material, interim leader Muhammad Yunus said on X.

Washington had “committed to ‌establishing a mechanism for certain textile and apparel goods from Bangladesh using U.S.-produced cotton and man-made fiber to receive zero reciprocal tariff in (the) US market,” wrote Yunus, who holds the post of chief advisor ⁠as head of the interim ‌government of Bangladesh.

Yunus said the negotiations on the agreement had spanned nine months since April last year.

The ‍White House, Treasury Department and Office of the U.S. Trade Representative did not immediately respond to requests for comment.

The South Asian nation last August secured ​a reduction in U.S. tariffs on its exports to 20%, ‌down from 37% initially proposed by Washington, offering much-needed relief to the nation’s apparel exporters.

The readymade garments sector is the backbone of Bangladesh’s economy, accounting for more than 80% of total export earnings, employing about 4 million workers, and contributing about 10% to gross ⁠domestic product.

Earlier this month, U.S. President Donald ​Trump announced a trade deal with ​neighbouring India to lower tariffs to 18% from 50% in exchange for New Delhi halting Russian oil purchases and ‍lowering trade barriers.

Bangladesh ⁠goes to the polls on Thursday to elect new leadership after being governed by an interim government since August 2024, ⁠when former Prime Minister Sheikh Hasina fled to India, where she remains.

(Reporting by ‌Nilutpal Timsina in Bengaluru and Ryan Jones in TorontoEditing ‌by Tomasz Janowski and Peter Graff)

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