Bangladesh Secures 19% Tariff Reduction for U.S.-Material Apparel (BGX)

Bangladesh has secured a 19% reduced U.S. tariff for certain textiles and garments made with U.S.-produced materials under a Monday-signed trade agreement, according to interim leader Muhammad Yunus. The arrangement would exempt goods manufactured with U.S. cotton and man-made fibers from reciprocal duty. Negotiations spanned nine months since April 2024. Last August, Bangladesh also reduced U.S. tariffs on exports from 37% to 20%, providing relief to its apparel sector, which accounts for over 80% of export earnings, employs about 4 million workers, and contributes roughly 10% to GDP. The White House, Treasury Department, and U.S. Trade Representative have not yet commented. This follows U.S. President Joe Biden’s announcement earlier this month of an 18% tariff on India in exchange for New Delhi curtailing Russian oil purchases and reducing trade barriers.