United States reduced tariffs on certain Bangladeshi goods to 20% following a reciprocal trade agreement signed on February 9, 2026.<\/p>\n
The United States has cut tariffs on certain Bangladeshi goods to 19% under a new trade agreement that takes effect immediately, replacing a 37% rate imposed in April 2025.<\/p>\n
The deal covers $11.8bn in annual trade, with Bangladesh exporting $9.5bn worth of ready-made garments, textiles and apparel to the US, while importing $2.3bn in US goods\u2014primarily cotton, machinery, medical devices and energy products. The lower rate applies only to shipments that meet strict rules of origin and volume limits, leaving most Bangladeshi exports still subject to the 19% duty.<\/p>\n
The agreement comes after the US Supreme Court struck down the original reciprocal tariff regime in February 2026, forcing the administration to renegotiate terms with trading partners. Under the new deal, Bangladesh secures limited duty-free access for a set volume of apparel and textiles, but must commit to buying billions in US agricultural and energy products in return.<\/p>\n
The US will reduce the reciprocal tariff on Bangladeshi goods to 19%<\/strong> from the 37% rate announced in April 20251<\/a><\/sup>. The lower rate applies only to "originating goods" under the Agreement on Reciprocal Trade (ART), signed on 9 February 2026<\/strong>1<\/a><\/sup>. Most shipments will still face the 19% duty, but a to-be-determined volume of apparel and textiles can enter duty-free if Bangladesh meets US demands for cotton and man-made fibre purchases1<\/a><\/sup>.<\/p>\n The quota system means the benefit is narrow. Bangladesh exported $8.2bn in apparel to the US in 2025, but the duty-free volume will cover only a fraction of that2<\/a><\/sup>. The rest will pay the 19% rate, which is still nearly double the pre-2025 most-favoured-nation rate of 10%3<\/a><\/sup>. For importers, the delivered cost of a $10,000 shipment of garments will fall by $1,800 if it qualifies for the zero rate, but rise by $900 if it does not.<\/p>\n The agreement also suspends the 10% temporary import duty imposed in February 2026 under Section 122 of the Trade Act of 1974, which expired on 24 July 2026<\/strong>3<\/a><\/sup>. That duty had added another layer of cost to all imports, including those from Bangladesh, but was lifted for goods covered by the ART.<\/p>\n To secure the tariff cut, Bangladesh has committed to purchasing $3.5bn in US agricultural products<\/strong> and $15bn in liquefied natural gas (LNG)<\/strong> over 15 years2<\/a><\/sup>. The deal also requires Bangladesh to accept US vehicle safety and emissions standards, recognise US Food and Drug Administration (FDA) approvals for medical devices and pharmaceuticals, and remove import restrictions on US remanufactured goods1<\/a><\/sup>.<\/p>\n The purchases are not optional. The agreement ties market access to specific buying targets, meaning Bangladesh must increase imports of US cotton, soy, dairy, beef and poultry to maintain the lower tariff rates1<\/a><\/sup>. For exporters, this creates a direct link between the cost of garments sold in the US and the volume of US goods bought by Bangladesh.<\/p>\n The deal also includes commitments on digital trade, labour standards and environmental protection. Bangladesh must prohibit imports made with forced labour, strengthen workers\u2019 rights to collective bargaining, and adopt science-based processes for US food and agricultural imports1<\/a><\/sup>. Failure to meet these conditions could trigger a review of the tariff concessions.<\/p>\n The original reciprocal tariff regime, announced in April 2025, was struck down by the US Supreme Court in Learning Resources, Inc. v. Trump<\/em> on 24 February 2026<\/strong>3<\/a><\/sup>. The court ruled that the tariffs, imposed under the International Emergency Economic Powers Act (IEEPA), exceeded the president\u2019s authority. US Customs and Border Protection (CBP) stopped collecting the duties the same day, leaving the administration with no legal basis to enforce the 37% rate.<\/p>\n The ruling created a legal vacuum. The administration responded by invoking Section 122 of the Trade Act of 1974, imposing a 10% temporary import duty on all goods entering the US4<\/a><\/sup>. That duty expired on 24 July 2026, but not before the US and Bangladesh finalised the ART, which restored a stable\u2014if higher\u2014tariff rate of 19%1<\/a><\/sup>.<\/p>\n The court\u2019s decision also invalidated reciprocal tariffs on other countries, including China, Mexico and Canada, which had faced rates as high as 41%3<\/a><\/sup>. The administration has since renegotiated deals with several partners, including India, which saw its rate cut to 18% in exchange for commitments to buy US energy and agricultural products5<\/a><\/sup>.<\/p>\n The tariff cut will lower costs for US importers of Bangladeshi apparel, but the benefit is uneven. The duty-free quota will cover only a small share of shipments, leaving most garments subject to the 19% rate1<\/a><\/sup>. For exporters, the delivered cost of a $100,000 container of T-shirts will fall by $19,000 if it qualifies for the zero rate, but rise by $9,000 if it does not.<\/p>\nBangladeshi goods: duty rates, old and new<\/h4>\n
What Bangladesh must buy in return<\/h2>\n
What the deal requires of Bangladesh<\/h4>\n
The Supreme Court ruling that forced the change<\/h2>\n
How the 37% rate fell apart<\/h4>\n
Who gains and who pays<\/h2>\n
A $100,000 container of T-shirts, two ways<\/h4>\n