Bangladesh Eases Export Duties to U.S., Implementing a 20% Reduction

In a landmark agreement, Bangladesh secures a trade pact with the U.S. to lower the initial 35% duty, offering further reductions for incorporating 20% U.S. goods.

Bangladesh eases tariff burden. The country's government has succeeded in reducing tariffs on exports to the United States from the initial 35% to 20%. In addition, products exported from the U.S. country with more than 20% U.S. content will get a further reduction.

This reciprocal tariff negotiation between the United States and Bangladesh took place at an event organized by the Bangladesh Textile Mills Association (Btma) in Dhaka. There, the president of the employers' association, Showkat Aziz Russell, revealed that the textile industry has a total investment of $75 billion, with the aim of increasing annual exports from the current $41 billion to $50 billion.

The tariff to which Bengali exports will now be subject, therefore, is closer to the figure imposed on other producing countries such as Sri Lanka, Vietnam, Pakistan or Indonesia. This reduction also gives the country a competitive advantage over India, one of its main competitors, which has a 25% levy, plus another 25% for the "direct or indirect" purchase of Russian oil.

The United States imposed a 50% tariff on products from India

As a result of the measures imposed on India, the fourth largest exporter of apparel to the United States, major U.S. retailers such as Walmart, Amazon, Target and Gap requested a pause in shipments to Indian exporters, mainly in the textile sector, because of the 50% tariff imposition.

India has recently emerged as the fashion industry's latest big business player, thanks to its pricing strategy, product customization and speed in capturing opportunities. In its latest budgets, the country raised the amount allocated to the Ministry of Textiles by up to 15%.

Last Thursday, August 7th, the new minimum tariffs of 10%, announced by the White House,came into force, with which the United States expects to collect $50 billion a month, according to the U.S. Secretary of Commerce, Howard Lutnick.