[🇧🇩] Trump's Victory/Tariff/ Bangladesh

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[🇧🇩] Trump's Victory/Tariff/ Bangladesh
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G Bangladesh Defense

US imposes new tariffs on 60 countries, 10% on Bangladesh

Foreign ministry says Dhaka has been placed in the lower tariff tier

Refayet Ullah Mirdha

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The United States has imposed a 10 percent tariff on imports from Bangladesh, saying the country has not done enough to prevent imports of raw materials produced using forced labour.

The Office of the US Trade Representative (USTR) announced the tariff for Bangladesh alongside 59 other countries and trading partners.

The duty takes effect from Friday, when the temporary 10 percent tariff imposed earlier this year by President Donald Trump expires. It comes into force at 12:01 am Washington DC time on July 24, 2026.

The new duty raises the total tariff on Bangladesh's garment exports to the US to 25.62 percent. Garments are Bangladesh’s main export to the US, its largest single-country export market.

The White House says the move is part of its latest effort to revive President Trump's plan for a broad global tariff regime after the US Supreme Court in February struck down his "reciprocal" tariffs of between 10 percent and 50 percent, which had been introduced under a national emergencies law to reduce the US trade deficit, according to Reuters.

According to a USTR statement, Bangladesh is among 18 countries, including India, Pakistan and Sri Lanka, that will face a 10 percent tariff. Other trading partners will face a 12.5 percent tariff.

Before the reciprocal tariff announced in April last year, Bangladesh's garment exporters had been paying a 15.62 percent duty on shipments to the US for several years.

In April 2025, President Trump introduced reciprocal tariffs on trading partners worldwide in a bid to reduce the US trade deficit. The US Supreme Court later struck down those tariffs.

Since then, the Trump administration has sought alternative legal avenues to implement the president's trade agenda.

Last month, the White House proposed tariffs ranging from 10 percent to 12.5 percent on goods imported from a dozen countries, saying they had not taken sufficient steps to combat forced labour.

Earlier this year, the US launched a Section 301 investigation covering 60 countries to determine whether to impose tariffs of 10 percent or 12.5 percent on countries that fail to prevent imports of goods produced using forced labour.

Following the announcement, the Ministry of Foreign Affairs (MoFA) said today that Bangladesh has been placed in the lower 10 percent tariff tier.

"Therefore, it retains Bangladesh's competitive standing in the US apparel and export market," it said.

The ministry said several major apparel-exporting competitors, including China, Vietnam and Thailand, would face the higher 12.5 percent tariff.

"This distinct differential reinforces Bangladesh's ongoing comparative advantage in the US market relative to its high-tariff competitors."

MoFA also said the USTR is considering introducing a three-year Tariff-Rate Quota (TRQ) for Bangladesh, Cambodia, Indonesia and Malaysia that would waive Section 301 tariffs on goods made from US cotton and textile inputs.

"This, when implemented, would provide Bangladesh with a further competitive advantage and promote its exports to the US market," it added.

The ministry said the government remains fully committed to upholding international labour standards and would continue to engage closely with international partners to ensure the robust growth, compliance and sustainability of Bangladesh's critical export sectors.​
 

What is the new US 10% tariff on Bangladesh and how does it differ this time?

Govt, exporters say impact minimal as rate unchanged

Star Business Report

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The US has rolled out a fresh 10 percent duty on all imports from Bangladesh under Section 301 of the Trade Act of 1974, replacing a temporary global tariff. The new 10 percent tariff will make the total duty on the country's garment shipments to the USA at 25.62 percent that includes the existing 15.62 percent Most-Favoured-Nation (MFN) tariff rate.

The rate is just replacement of previous universal rate at 10 percent to another name failure to impose prohibition on import of goods produced using the forced labour.

The tariff was announced by the Office of the United States Trade Representative (USTR) on July 23 and took effect on July 24.

Why forced labour?

Following the nullification of reciprocal tariffs by the US Supreme Court from the Agreement on Reciprocal Tariffs (ART), the Trump administration was looking for the opportunity to impose higher tariffs on the imported goods.

So in March, the USTR has launched an investigation on 60 economies including Bangladesh globally under Section 301 to determine whether they failed to block imports made with forced labour. Bangladesh was found to have a “partial enforcement framework”, placing it in the lower of two tariff bands ranging from 10 percent to 12.5 percent.

A shifting tariff landscape

This is the third tariff regime Bangladeshi exporters have faced only in two years. Exporters faced a 15.62 percent base rate before reciprocal tariffs were imposed under a national emergencies law in April 2025. After the US Supreme Court struck down that regime in February this year, a temporary 10 percent global tariff under Section 122 filled the gap until its 150-day legal limit expired on July 24, replaced immediately by the Section 301 tariff.

Official and exporter reactions

Government officials and trade leaders view the measure as a continuation. Commerce Minister Khandaker Abdul Muktadir said the measures would not create any new impact as the tariff rate remains unchanged.

Faisal Samad, director of Bangladesh Garment Manufacturers and Exporters Association, echoed the view, adding it will not impact exports.

Meanwhile, the Ministry of Foreign Affairs (MoFA) said Bangladesh retains its competitive standing as key apparel-exporting rivals face a higher 12.5 percent duty.

"This distinct differential reinforces Bangladesh's ongoing comparative advantage in the US market relative to its high-tariff competitors," MoFA said.

It added that the USTR is considering a three-year Tariff-Rate Quota (TRQ) for Bangladesh, Cambodia, Indonesia and Malaysia to waive Section 301 tariffs on goods made from US cotton and textile inputs.

The bilateral deal complication

The interim government signed a US-Bangladesh Agreement on Reciprocal Trade (ART) on February 9 this year, setting a 19 percent rate in exchange for market opening. Because ART rested on the struck-down emergency-powers structure, the government is seeking formal clarification on whether the 19 percent rate applies or is superseded by Section 301.

Where Bangladesh stands against rivals

Dhaka retains its competitive standing in apparel exports, being among 17 of 86 countries placed in the lower 10 percent tier. Competitors China, Vietnam, and Thailand face the maximum 12.5 percent rate, reinforcing Bangladesh's ongoing comparative advantage, the foreign ministry noted.​
 

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