Bangladesh’s reciprocal tariffs on exports to the USA may be reduced further from the current 20 percent as the two countries move to strengthen trade relations, according to a statement from the press wing of the chief adviser (CA) issued today.
The press wing expressed optimism as US Trade Representative (USTR) Ambassador Jamieson Greer responded positively after Bangladesh’s National Security Adviser Khalilur Rahman, who is currently visiting Washington DC, requested him to raise Bangladesh’s reciprocal tariff matter with President Donald Trump.
Greer would highlight the possibility of reducing Bangladesh’s current reciprocal tariff and aligning it more closely with regional competitors, the statement added.
Bangladesh has achieved an important step forward in strengthening its mutually beneficial trade relationship with the United States, opening the door to greater market access and new opportunities for its vital textile and apparel sector, the statement read.
Even more significantly, both sides have developed an innovative and forward-looking solution to support Bangladesh’s export priorities.
Under a proposed preferential scheme discussed today by Rahman and Ambassador Greer, Bangladesh would receive tariff-free access to the American market for textile and apparel exports equivalent to its imports of US-produced cotton and man-made fibre textile inputs, measured on a square-metre basis.
This creative, win-win approach strengthens bilateral trade, supports Bangladeshi manufacturers and workers, and deepens supply-chain ties with US producers. It reflects growing momentum and goodwill in US-Bangladesh economic relations and marks a promising new chapter for Bangladesh’s global trade prospects.
Earlier, in April last year, Trump proposed a 37 percent reciprocal tariff on Bangladesh, compared with 16.5 percent on shipments of merchandise to the USA.
However, after intense negotiations, the Trump administration reduced the tariff rate to 20 percent, which came into effect on August 7 last year.
Currently, local exporters face a 36.5 percent tariff on exports to the American market.
The Trump administration agreed to reduce tariffs on Bangladeshi goods when the country committed to importing more American products such as airplanes, cotton, liquefied natural gas, soybeans, and wheat to help reduce the bilateral trade gap.
The trade gap between Bangladesh and the USA exceeds $6 billion, with Bangladesh exporting goods worth $8.2 billion and importing goods worth $2 billion.
Exports from Bangladesh are expected to increase, riding on its favourable tariff schedule compared with other countries.