Bangladesh–US trade talks: Dhaka pushes for cut in 20% tariff, wider textile access

Bangladesh eyes tariff relief in US

Bangladesh has signalled a potential breakthrough in trade ties with the United States following talks in Washington that raised hopes of lower tariffs and improved market access for its textile and garment exports.

In a statement, Chief Adviser Muhammad Yunus said the discussions marked “an important step forward” in strengthening a mutually beneficial economic partnership between Dhaka and Washington.

Yunus said US Trade Representative Ambassador Jamieson Greer had agreed to take up with President Donald Trump the possibility of reducing Bangladesh’s existing 20 per cent reciprocal tariff rate. The proposal was conveyed by National Security Adviser Dr Khalilur Rahman during his visit to Washington.

The potential tariff cut would align Bangladesh more closely with regional competitors and significantly expand access for its garment industry, a key pillar of the country’s export earnings and employment.

Yunus added that officials also explored a preferential arrangement under which Bangladesh could receive tariff-free access to the US market for textile and apparel exports equivalent to its imports of US-made cotton and man-made fibre textile inputs. Calculated on a square-metre basis, officials described the proposal as a “win-win” model designed to strengthen supply-chain linkages between the two countries.

“This creative, win-win approach strengthens bilateral trade, supports Bangladeshi manufacturers and workers, and deepens supply-chain ties with U.S. producers. It reflects growing momentum and goodwill in U.S.–Bangladesh economic relations and marks a promising new chapter for Bangladesh’s global trade prospects,” Yunus said.

Bangladesh Secures Major Breakthrough in U.S. Trade TalksWashington, January 10, 2026— Bangladesh has achieved an important step forward in strengthening its mutually beneficial trade relationship with the United States, opening the door to greater market access and new… pic.twitter.com/Sbe3xP5NZw

— Chief Adviser of the Government of Bangladesh (@ChiefAdviserGoB) January 10, 2026

The interim government said the proposal would reinforce bilateral trade relations, boost employment and manufacturing in Bangladesh, and deepen supply-chain connections with American producers.

In 2024, total US trade in goods and services with Bangladesh was estimated at $12.4 billion, a three per cent increase from the previous year. US goods exports to Bangladesh stood at $2.3 billion, while imports from Bangladesh rose to $8.4 billion, leaving the United States with a goods trade deficit of $6.1 billion.