National Security Advisor Dr. Khalilur Rahman has announced that Bangladesh has successfully avoided a potential 35% retaliatory tariff, a significant relief for the country’s garment sector and its millions of workers. This development helps Bangladesh maintain its competitive position globally and opens new opportunities to enter the world’s largest consumer market, the United States.
Dr. Rahman made these remarks in response to a recent U.S. announcement where President Donald Trump signed an executive order imposing up to 41% new tariff rates on imports from 70 countries. The agreements accompanying these tariffs include reforms in domestic policies, trade balance measures, removal of non-tariff barriers, and national security considerations. Participating countries had to commit to purchasing U.S. products to help reduce the U.S. trade deficit.
Bangladesh was granted a 20% tariff rate, comparable to other garment-exporting competitors like Sri Lanka, Vietnam, Pakistan, and Indonesia. In contrast, India, which failed to reach a full agreement, faces a 25% tariff.
The negotiations prioritized protecting Bangladesh’s garment industry while also including commitments to import U.S. agricultural products, which will support food security and strengthen relations with U.S. agricultural states. Dr. Rahman emphasized that all discussions aligned with Bangladesh’s national interests and capacities, ensuring the country’s position in global trade remains strong.
This tariff outcome is positive news for Bangladesh’s garment sector and its workforce, preserving their access to the critical U.S. market under favorable terms compared to some competitors. It also signals Bangladesh’s growing economic resilience amid shifting global trade policies.
