Dhaka: Commerce Minister Khandakar Abdul Muktadir on Thursday announced that the trade agreement between Bangladesh and the United States has facilitated a reduction in the reciprocal tariff on Bangladeshi products, helping the country preserve its competitive edge in the US market.
According to United News of Bangladesh, the minister made these comments in response to a starred question posed by ruling BNP lawmaker Md Salimuzzaman Molla (Gopalganj-1) in Parliament. The inquiry focused on the benefits that the Agreement on Reciprocal Trade (ART), signed with the US by the interim government, would bring to the people of Bangladesh.
Prior to April 2025, Bangladeshi exports to the US faced an average Most Favoured Nation (MFN) tariff of approximately 15 percent. In April 2025, the US enforced an additional 37 percent reciprocal tariff, increasing the overall average tariff burden to around 52 percent. Muktadir explained that following consultations with governmental and private sector stakeholders, Bangladesh initiated negotiations with the US Trade Representative (USTR).
As a result of these negotiations, the US decreased the reciprocal tariff on Bangladeshi products from 37 percent to 19 percent, which led to the signing of the ART between the two nations. The agreement also includes a clause for reducing the reciprocal tariff on garments manufactured in Bangladesh using cotton imported from the US and then exported back to the US.
Muktadir further revealed that the US conducted an investigation into forced labour under Section 301 of the Trade Act of 1974. The US imposed an additional tariff of 10 percent or 12.5 percent on products from around 60 countries, including Bangladesh, based on whether these countries had banned imports of goods produced through forced labour or were enforcing such bans effectively. However, since Bangladesh had signed the ART with the US, the additional tariff on its products was set at 10 percent.
The minister concluded that as a result of these developments, Bangladesh has maintained its export competitiveness in the US market compared to its rivals. He emphasized that the agreement and subsequent tariff adjustments will support Bangladeshi exporters in retaining their position in this critical market.