Bangladesh Secures Lowest US Tariff, Boosting Export Edge

Bangladesh has secured the lowest tariff rate of 10 percent under a new US trade measure, strengthening its competitive position against major apparel-exporting rivals, including China, Vietnam and Thailand.

On July 23, the United States announced new tariffs under Section 301 of the Trade Act of 1974 on imports from 86 countries following investigations by the Office of the United States Trade Representative (USTR) into the use of forced labour.

The new tariffs, ranging from 10 percent to 12.5 percent, came into effect at 12:01 am (Washington DC time) on Friday, replacing the temporary 10-percent global tariff previously imposed under Section 122, according to the Ministry of Foreign Affairs.

Under the revised measure, imports from Bangladesh will be subject to a 10-percent tariff, in addition to the existing Most-Favoured-Nation (MFN) tariff rates.

Bangladesh is among only 17 of the 86 countries placed in the lowest 10-percent tariff tier, a position expected to help preserve its competitiveness in the US apparel and broader export markets.

By contrast, several of Bangladesh's key competitors in garment exports, including China, Vietnam and Thailand, have been placed in the highest 12.5-percent tariff category, potentially giving Bangladesh a comparative advantage in the US market.

Meanwhile, the USTR is considering introducing a three-year Tariff-Rate Quota (TRQ) for Bangladesh, Cambodia, Indonesia and Malaysia, which could exempt products manufactured using US cotton and textile inputs from the Section 301 tariffs.

If implemented, the measure could further strengthen Bangladesh's competitiveness while encouraging greater use of US textile inputs and expanding the country's exports to the American market.

The government reaffirmed its commitment to maintaining international labour standards and continuing close engagement with global partners to support sustainable growth, compliance and the long-term development of Bangladesh's export sectors.