Bangladesh is set to sign a trade agreement with the United States in August 2025 that will impose a 20% supplementary tariff on its exports to the US, replacing the previously proposed 35% rate. This will bring the total tariff on Bangladeshi goods entering the US to approximately 35%, combining the existing 15% average with the new duty.
The agreement is being drafted by the United States Trade Representative (USTR) and is expected to be finalized within 2–3 weeks. It will be signed after both sides reach a consensus, followed by a joint public announcement.
Key provisions reportedly include:
- Tariffs and non-tariff barriers
- Facilitation of US product entry (e.g., automobiles)
- Transparency in revenue collection
- Labour rights and wage assurance in Bangladesh’s garment sector
- Intellectual property enforcement
- National security clauses and confidentiality
To offset the new tariffs, Bangladesh is expected to increase imports from the US (e.g., wheat, LNG, soyabean oil, cotton) and possibly purchase 25 Boeing aircraft, though the latter was not emphasized during talks.
The agreement remains confidential under a non-disclosure arrangement, though some details were leaked. Commerce Advisor Sheikh Bashir Uddin confirmed there is “nothing against the country’s interests” in the draft.
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