Good news for Bangladesh - US Cuts Tariffs By 1%, Zero Reciprocal Tariff
Earlier, when trump had set a tariff rate of 37 percent on Bangladeshi goods, the main target was affecting the economies of different countries. Recently, the traffic rate is reduced upto 20 percent.
As per the global trade update, the United States and Bangladesh signed a deal Monday to lower US tariffs on goods from the world’s second-largest garment exporter. Washington also pledged to work toward duty releases for some fixed textiles and apparel. This news is good for Bangladesh's US economic relations.
According to a report shared by the White House, ‘US President Donald Trump's administration is set to reduce US "reciprocal" tariffs on Bangladesh products upto 20 per cent. These duties were earlier imposed by Trump to address trade imbalances or practices Washington deemed unjust.
Textile and garment manufacturing makes up about 80 per cent of exports in Bangladesh, and the business has been rebuilding after it was hit hard in a student-led revolution that fell over the government in 2024.
With the Bangladesh export update, Washington "commits to set up a system that will allow for some particular textile and apparel goods from Bangladesh to get a zero reciprocal tariff rate." As a result, some volumes of the imports can get preferential treatment. However, the quality will be related to the quantity of US textile exports to the country, such as man-made fibre inputs and US-produced cotton.
Apart from the textiles, the United States will also find out other products that may get a zero percent "reciprocal" tariff.
According to Muhammad Yunus, Bangladesh's interim government, ‘the agreement under the import export policy was signed on Monday and will be set once both sides issue notifications.
