US Tariff Exemption for Bangladeshi Textiles: A New Trade Agreement

Wed Feb 11 2026 01:30:56 GMT+0200 (Eastern European Standard Time)

The US has reached a new trade agreement with Bangladesh, offering tariff exemptions for certain Bangladeshi garments made with American materials and reducing tariffs from 20% to 19%.

In a significant trade development, the US has agreed to exempt certain Bangladeshi textiles from tariffs, specifically those made with US-produced materials. The deal will also see a reduction in tariffs from 20% to 19%, in exchange for Bangladesh opening its markets to a broader range of American goods. This agreement emphasizes strong economic ties and aims to bolster both countries' trade relationships.

Bangladesh has secured exemptions for some clothes and textiles that are made with US-produced materials, as part of a new agreement announced on Monday.

As part of the deal, Washington will cut its tariffs on Bangladesh from 20% to 19%, in exchange for Dhaka to open its markets to a wider range of American goods.

The apparel industry forms the backbone of Bangladesh, which is the world's second largest exporter of clothes after China.

The South Asian country has been in long-drawn talks with the White House after President Donald Trump imposed sweeping tariffs on global trading partners in April last year.

The White House said in a joint statement between the sides that the agreement will strengthen the countries' economic ties and offer both unprecedented access to each market.

It said the US will lower its tariff rate on Bangladesh and will also identify certain clothing and textile goods from the country to enter the US free of tariffs.

The goods include those produced with American cotton and man-made textiles, the statement said, with the volume of these determined by how much textiles the US exports to Bangladesh.

The clothing sector accounts for more than 80% of Bangladesh's total export revenue and employs around four million workers.

In exchange, Bangladesh has agreed to provide significant preferential market access to a host of American agricultural and industrial goods, including chemicals, medical devices, car parts, soy products, and meat.

The BBC has contacted the Bangladeshi government for comment.

As part of the agreement, Dhaka will recognise American food and drug and vehicle safety and emission rules, facilitating easier entry for US goods into the country.

Bangladesh has also committed to observe internationally recognised labour rights, improve environmental protection efforts, and uphold its agreement to purchase billions of dollars of American agriculture, aircraft, and energy products.

Bangladesh is set to head to the polls on Thursday for general elections. The country has been under an interim government since 2024, following the ousting of former Prime Minister Sheikh Hasina.

The US tariff cuts will position Bangladesh more favorably against its regional competitor, India, which currently faces an 18% levy from the US.