US again imposes 10% tariff on Bangladesh
The US has imposed a 10 percent tariff on imports from Bangladesh along with 17 other countries, as the countries have not done enough to prevent the import of raw materials produced using forced labour.
The development comes after the US launched an investigation in March covering 60 countries, including Bangladesh, under Section 301(b) of the Trade Act, 1974 to determine whether to impose tariffs of 10 percent or 12.5 percent for failure to prevent imports of goods produced using forced labour.
The duty took effect from yesterday, according to the notification from the Office of the US Trade Representative (USTR). Coincidentally, the temporary 10 percent tariff imposed earlier this year by US President Donald Trump expired yesterday.
The new duty keeps the total tariff on Bangladesh’s garment exports to the US to 25.62 percent. About 20 percent of Bangladesh’s garment exports are destined to the US.
Bangladesh has been placed in the lower 10 percent tariff tier, said the foreign ministry in a statement yesterday following the USTR announcement. “Therefore, it retains Bangladesh’s competitive standing in the US apparel and export market.”
The other countries subjected to the 10 percent tariff are Argentina, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the UK.
Several major apparel-exporting competitors, including China, Vietnam and Thailand, would face the higher 12.5 percent tariff, said the foreign ministry statement.
“This distinct differential reinforces Bangladesh’s ongoing comparative advantage in the US market relative to its high-tariff competitors.”
The USTR is considering introducing a three-year Tariff-Rate Quota for Bangladesh, Cambodia, Indonesia and Malaysia that would waive Section 301 tariffs on goods made from US cotton and textile inputs, the statement said.
“This, when implemented, would provide Bangladesh with a further competitive advantage and promote its exports to the US market.”
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, the statement added.
The latest US tariff measures on Bangladesh would not create any new impact, as the tariff rate remains unchanged after being introduced under a different name, said Commerce Minister Khandaker Abdul Muktadir.
Because of the legal obligation under US law, the previous tariff imposed by the US expired within 150 days.
“After the expiry of the previous tariff, the new tariff will come into effect. Although it will have a different name, the tariff rate will remain the same as before,” he added.
Garment exporters echoed the same.
The tariff will not have any impact on Bangladesh’s garment exports to the US, said Faisal Samad, director of Bangladesh Garment Manufacturers and Exporters Association.
“This is an existing tariff but under a new name,” he added.
Bangladesh expected a lower tariff than the final rate, said Mohammad Abdur Razzaque, chairman of the Research and Policy Integration for Development.
The US buyers may force the local exporters to bear a portion of the tariff, which may affect the export value, he added.
For all latest news, follow The Daily Star's Google News channel. 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.
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.
Before the reciprocal tariff was announced in April last year, Bangladesh’s garment exporters paid a 15.62 percent duty on shipments to the US for several years.
In fiscal 2025-26, Bangladesh exported goods worth $9.04 billion to the US, up 4.1 percent year-on-year, according to data from the Export Promotion Bureau. Of the amount, garment accounted for $7.74 billion, an increase of 2.6 percent from the previous year.
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