Bangladesh secures 19% US tariff and exemption for some apparel made with US material
#Bangladesh #USA #Apparel Industry #Tariff Exemption #US Cotton #BGMEA #Textile Trade
📌 Key Takeaways
- Bangladesh has secured a 19% tariff exemption for apparel manufactured with U.S.-sourced cotton.
- The agreement aims to lower costs for Bangladeshi exporters and increase the market share of U.S. cotton.
- The United States remains the primary export destination for Bangladesh's ready-made garment sector.
- This policy change is expected to drive closer economic ties and supply chain integration between the two nations.
📖 Full Retelling
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) announced on Tuesday that the United States government has granted a 19% tariff exemption on specific apparel imports manufactured using cotton sourced from the U.S. This significant trade development follows high-level negotiations between Bangladeshi trade officials and U.S. commerce representatives in Washington D.C., aimed at strengthening bilateral textile trade and reducing the financial burden on manufacturers operating within the South Asian garment hub. The policy shift is intended to incentivize Bangladeshi factories to utilize American raw materials while simultaneously making their finished exports more price-competitive in the Western market.
Under this new agreement, the tariff reduction specifically targets garments that are produced through a vertically integrated supply chain involving U.S. cotton fibers. Historically, Bangladesh has faced stiff competition and high import duties when entering the American market, which is its largest export destination for ready-made garments. By securing this exemption, Bangladesh positions itself as a strategic partner for American cotton farmers, creating a symbiotic trade loop where raw material exports from the U.S. return as high-value finished goods at a lower cost to American consumers.
Industry experts suggest that this move could significantly reshape the logistics and sourcing strategies of major fashion brands globally. For Bangladesh, the world's second-largest garment exporter, the 19% relief serves as a crucial economic buffer against rising production costs and global inflation. Furthermore, the deal is expected to encourage technological upgrades in Bangladeshi spinning and weaving mills to better handle U.S. cotton varieties, ultimately enhancing the overall quality and compliance standards of the country's multi-billion dollar apparel industry.
🏷️ Themes
International Trade, Economy, Manufacturing
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United States
Country primarily in North America
# United States of America The **United States of America (USA)**, commonly referred to as the **United States (U.S.)** or **America**, is a country primarily situated in North America. It is organized as a federal republic consisting of 50 states and a federal capital district, Washington, D.C. #...
Bangladesh
Country in South Asia
# Bangladesh **Bangladesh**, officially the **People's Republic of Bangladesh**, is a sovereign state located in South Asia. Situated in the fertile Ganges-Brahmaputra delta, it is defined by its distinctive geography, dense population, and strategic position as a bridge between South and Southeast...
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📄 Original Source Content
try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry As Claude disrupts stock market, Anthropic researcher warns ’world is in peril’ Gold, silver prices rise amid U.S.-Iran tensions, blowout January payrolls data Dow halts three-day win streak as blowout jobs data curbs rate cut bets Citi pushes back Fed rate cuts to May after blowout January jobs report (South Africa Philippines Nigeria) Bangladesh secures reduced 19% US tariff, exemption for some apparel made with US material World Published 02/09/2026, 01:04 PM Updated 02/09/2026, 05:42 PM Bangladesh secures reduced 19% US tariff, exemption for some apparel made with US material 0 By Nilutpal Timsina Feb 9 - Bangladesh has secured a reduced 19% U.S. tariff under a trade agreement signed between the two countries on Monday, granting exemptions for some textiles and garments manufactured with U.S. material. Muhammad Yunus, chief advisor heading Bangladesh’s interim government, said Washington had "committed to establishing a mechanism for certain textile and apparel goods from Bangladesh using U.S.-produced cotton and man-made fiber to receive zero reciprocal tariff in U.S. market." The White House said Bangladesh had agreed to provide significant preferential market access for U.S. industrial and agricultural goods, including chemicals, medical devices, machinery and motor vehicles and parts, soy products and dairy goods, beef, poultry, tree nuts and fruit. Bangladesh will also ease non-tariff barriers by accepting U.S. vehicle safety and emissions standards, recognising U.S. Food and Drug Administration certifications and removing import restrictions on remanufactured goods, the White House added. BANGLADESH TO BOOST U.S. PURCHASES The nations also noted recent and upcoming commercial deals including aircraft procurement, around $3.5 billion in purchases of U.S. agricultural products, and an estimated $15 billion in U.S. energy product purchases over 15 years. According to the U.S.-Bangladesh agreement’s 32-...