Bangladesh and United States reach trade agreement to reduce garment tariffs

Bangladesh today secured a 19% U.S. tariff rate and exemptions for apparel made with U.S. material. The deal comes just days before the national election.

The Government of the United States USUS and the Interim government of Bangladesh BDBD signed a trade agreement on February 9, 2026, marking the completion of a process that reduces U.S. tariffs on Bangladeshi goods to 19 percent. This agreement concludes nine months of negotiations and follows a prior tariff reduction implemented in August. A key component of the deal is the establishment of a mechanism to exempt certain textiles and garments from U.S. tariffs, provided they are manufactured using U.S.-produced cotton and man-made fiber.
Bangladesh's Chief Adviser of the interim Government Muhammad Yunus addresses the 80th United Nations General Assembly (UNGA) at U.N. headquarters in New York City, U.S., September 26, 2025. REUTERS/Kylie Cooper
Bangladesh's Chief Adviser of the interim Government Muhammad Yunus addresses the 80th United Nations General Assembly (UNGA) at U.N. headquarters in New York City, U.S., September 26, 2025. REUTERS/Kylie Cooper
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