Bangladesh has secured a competitive advantage in the US market after being placed in the lowest 10% tariff bracket under a new tariff regime announced by the United States, while several key apparel-exporting competitors, including Vietnam and China, face higher duties of 12.5%.
The new tariffs, effective from Friday under Section 301 of the US Trade Act of 1974, target imports from countries that Washington says have failed to address forced labour concerns in their supply chains. The measure follows investigations by the Office of the United States Trade Representative (USTR) covering 86 countries and applies to nearly all US imports, with limited exemptions.
Bangladesh is among only 17 economies assigned the minimum 10% tariff, alongside countries such as India, Pakistan, Sri Lanka, the United Kingdom and Canada. The Ministry of Foreign Affairs said the decision reflects Bangladesh’s continued commitment to international labour standards and reinforces its comparative advantage over higher-tariff competitors in the US market.
BGMEA President Mahmud Hasan Khan said the new measure effectively replaces the previous 10% tariff that expired on July 24, meaning there is no immediate change in the tariff rate for Bangladeshi exports. However, when combined with existing product-specific duties, Bangladeshi apparel exports to the US will continue to face an average tariff of around 26% to 27%, depending on the product category.
Industry leaders welcomed Bangladesh’s relatively favourable position but stressed that long-term competitiveness will depend on improving productivity, product diversification, value addition and innovation rather than relying solely on tariff advantages.
Meanwhile, economists cautioned that Bangladesh should carefully review its broader trade arrangements with the United States. Professor Mustafizur Rahman, Distinguished Fellow at the Centre for Policy Dialogue (CPD), warned that while the new 10% tariff keeps Bangladesh competitive, any separate bilateral agreement imposing higher duties could erode this advantage.
Commerce Minister Khandakar Abdul Muktadir said the latest announcement does not significantly alter the existing tariff structure, as the previous 10% duty has effectively been continued under a new legal framework.
The latest US decision comes at a time when Bangladesh is working to strengthen its position as a reliable sourcing destination through compliance with international labour, sustainability and traceability standards, while preparing for evolving global trade requirements.
