Bangladesh- US signs tariff deal, reciprocal tariff down to 19% days before Feb 12 polls | World News

Bangladesh and the United States signed a major bilateral tariff agreement on Monday evening, just days before Bangladesh’s national elections on February 12. This timely agreement promises to strengthen trade ties and support the country’s vital garment industry.

Bangladesh Trade Advisor Sheikh Bashir Uddin and National Security Advisor Khalilur Rahman signed on behalf of Dhaka. U.S. Trade Representative Ambassador Jamieson Greer represented Washington. The talks had lasted nine months since April last year.

Just now: Bangladesh and the USA signed a mutual tariff agreement. According to the agreement, the USA will reduce the mutual tariff to 19 percent. — Sidhant Sibal (@sidhant) February 9, 2026

The agreement reduces the reciprocal customs duty imposed by the United States on Bangladeshi goods from 20 percent to 19 percent. In April 2025, the Trump administration imposed a 37% tariff on Bangladesh. It later dropped to 35%, then to 20% in August.

It also imposes zero tariffs on select textile and apparel products made from U.S. cotton or man-made fibers. Trade Adviser Uddin described it as a “historic step” that opens larger markets for both countries.

The United States will create a system that allows zero reciprocal tariffs on certain Bangladeshi textiles and apparel products made from U.S. cotton or man-made fibers.

National Security Adviser Rahman, who is leading the negotiations, said the changes will help exporters and give a big boost to Bangladesh’s ready-made garment industry. The Council of Advisers approved the agreement today. It comes into force after both parties give notice.

Minister of Commerce Mahbubur Rahman and Deputy US Trade Representative Brendan Lynch attended the signing ceremony. As elections approach, officials are hailing the deal as a win for jobs and economic growth.

The agreement came with the completion of the election campaign for the February 12 elections. Whichever party wins Thursday’s vote will welcome the U.S. reciprocal tariff agreement. Garments account for about 95% of Bangladesh’s exports to the United States. According to local news, this gives Dhaka a significant advantage in the US apparel market.