Bangladesh Receives the Lowest Tariff Rate Under New U.S. Trade Measures

The United States government has announced new tariffs on imports from 86 countries and 60 economies under Section 301 of the Trade Act of 1974, following an investigation by the Office of the United States Trade Representative (USTR) into allegations of the use of forced labor.

The new tariffs took effect at 12:01 a.m. Washington time on Friday (July 24). The tariff rates range from 10 percent to 12.5 percent, replacing the temporary 10 percent global tariff previously imposed under Section 122.

For Bangladesh, the tariff has been set at 10 percent, the lowest rate under the new framework. The tariff will apply to all goods exported from Bangladesh to the United States and will be imposed in addition to the existing Most Favoured Nation (MFN) tariff rates. Of the 86 countries covered by the measure, only 17 have been placed in the lowest 10 percent tariff bracket, with Bangladesh among them. As a result, the country's competitive position in the U.S. apparel and export market is expected to remain intact.

While Bangladesh faces a 10 percent tariff, major competing garment-exporting countries, including China, Vietnam, and Thailand, have been subjected to the maximum 12.5 percent tariff. This difference is expected to strengthen Bangladesh's competitive advantage in the U.S. market, particularly against competitors facing higher duties.

In addition, the USTR is considering introducing a three-year Tariff Rate Quota (TRQ) for Bangladesh, Cambodia, Indonesia, and Malaysia. If implemented, products manufactured using U.S.-origin cotton and textile inputs could be exempt from the Section 301 tariff. Such a move would provide Bangladesh with an additional competitive edge and is expected to help boost exports to the U.S. market.

The Government of Bangladesh has reaffirmed its commitment to maintaining international labor standards and stated that it will continue working closely with international partners to ensure sustainable growth, regulatory compliance, and the long-term development of the country's export sector.