Bangladesh-US Trade Talks: Dhaka Seeks Cut In 20% Tariff, Discusses Textile Market Access

Last Updated:January 10, 2026, 20:48 IST

Bangladesh, led by Muhammad Yunus, secures a breakthrough in US trade talks, with prospects of reduced tariffs and improved market access for its textile and apparel exports.

Both sides have developed an innovative and forward-looking solution to support Bangladesh’s export priorities. (X)

Bangladesh has indicated a breakthrough in trade relations with the United States after discussions in Washington raised the prospect of reduced tariffs and improved market access for its textile and garment exports.

In a statement, Bangladesh’s Chief Adviser Muhammad Yunus said the talks marked “an important step forward" in strengthening a mutually beneficial economic partnership between the two countries.

According to Yunus, US Trade Representative Ambassador Jamieson Greer has agreed to raise with Trump the possibility of reducing Bangladesh’s current 20 per cent reciprocal tariff rate. The request was made by Security Adviser Dr Khalilur Rahman during his visit to Washington.

The proposed reduction would bring Bangladesh’s tariff treatment closer to that of regional competitors and expand access for its garment sector, which is a major driver of the country’s exports and employment.

Yunus further said that officials also discussed a proposed preferential arrangement under which Bangladesh could receive tariff-free access to the US market for textile and apparel exports equivalent to its imports of US-produced cotton and man-made fibre textile inputs. The scheme, measured on a square-metre basis, was described by officials as a “win-win" approach that would strengthen supply-chain ties between the two countries.

“This creative, win-win approach strengthens bilateral trade, supports Bangladeshi manufacturers and workers, and deepens supply-chain ties with U.S. producers. It reflects growing momentum and goodwill in U.S.–Bangladesh economic relations and marks a promising new chapter for Bangladesh’s global trade prospects," he said.

The interim government described the proposal as a mutually beneficial approach that would reinforce bilateral trade ties, support employment and manufacturing in Bangladesh, and strengthen supply-chain linkages with American producers.

In 2024, total US goods and services trade with Bangladesh stood at an estimated $12.4 billion, up three per cent from the previous year. US goods exports to Bangladesh were valued at $2.3 billion, while imports from Bangladesh rose to $8.4 billion, resulting in a US goods trade deficit of $6.1 billion.

News world Bangladesh-US Trade Talks: Dhaka Seeks Cut In 20% Tariff, Discusses Textile Market Access

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