Source The Hindu
The United States has reduced import tariffs on goods from Bangladesh to 19 per cent, marking a significant shift in its trade policy toward the South Asian nation and offering relief to Bangladeshi exporters, particularly in the garments and textile sector.
The decision is being seen as a positive step toward improving bilateral trade relations after years of trade-related concerns, including labor standards, workplace safety, and market access issues. Bangladesh is one of the world’s largest exporters of ready-made garments, with the U.S. being its biggest single export destination.
Officials familiar with the development said the tariff reduction is expected to boost Bangladesh’s export competitiveness in the U.S. market at a time when global demand remains under pressure due to inflation and slowing economic growth in key economies. Lower duties could help Bangladeshi manufacturers secure more orders and protect millions of jobs linked to the apparel industry.
Industry leaders in Bangladesh welcomed the move, calling it a “timely relief” that could strengthen investor confidence and encourage further reforms. They also expressed hope that the tariff cut could pave the way for broader trade concessions in the future, including discussions on duty-free access.
From the U.S. perspective, the move aligns with efforts to diversify supply chains and reduce overdependence on a limited number of manufacturing hubs. Analysts say Washington may also be using trade incentives to encourage continued improvements in labor rights and compliance with international standards in Bangladesh.
While the tariff reduction stops short of restoring full preferential trade benefits, experts believe it reflects a gradual warming of economic ties and could open the door to deeper engagement between the two countries in the coming years.
