The United States and Bangladesh have signed a Reciprocal Tariff Agreement, lowering US tariffs on Bangladeshi exports to 19 per cent and offering zero-duty access for select textile and apparel products made using US cotton and man-made fibres.

Signed in Dhaka by Commerce Adviser Sheikh Bashir Uddin, NSA Khalilur Rahman and US Trade Representative Jamieson Greer, the deal follows nine months of negotiations.

The US–Bangladesh reciprocal tariff agreement cuts duties to 19 per cent, easing pressure on exporters after months of uncertainty.
Zero-duty access for select garments using US inputs strengthens Bangladesh’s competitiveness in its biggest market.
The move is expected to stabilise jobs, support margins, and reinforce the country’s role in global apparel supply chains.

“The reduction of reciprocal tariff will grant further advantage to our exporters, while zero reciprocal tariff on specific textile and apparel exports from Bangladesh using US inputs will give substantial added impetus to our garments sector,” said NSA Rahman who was Bangladesh’s chief negotiator.

The tariff cut marks a sharp reduction from the initially proposed 37 per cent in April last year and the interim 20 per cent agreed in August. US officials praised Chief Adviser Muhammad Yunus for steering the talks, while Bangladesh termed the pact a historic upgrade in bilateral trade ties.

Rahman said the lower tariffs and duty-free access would give fresh momentum to the garments sector, Bangladesh’s largest export industry, which accounts for over 80 per cent of export earnings and employs nearly four million workers. The agreement, approved by Bangladesh’s Council of Advisers, will come into force once formal notifications are issued.

Fibre2Fashion News Desk (RKS)

The US federal budget deficit was $696 billion in the first four months of fiscal 2025-26, which began in October last year, the Congressional Budget Office (CBO) estimates.

This was $143 billion less than the deficit recorded during the same period in the last fiscal.

Revenues rose by $189 billion, or 12 per cent, and outlays were $45 billion, or 2 per cent, higher during the four months.

The US federal budget deficit was $696 billion in the first four months of fiscal 2025-26, which began in October last year, the Congressional Budget Office estimates.
This was $143 billion less than the deficit recorded during the same period in the last fiscal.
Revenues rose by $189 billion, or 12 per cent, and outlays were $45 billion, or 2 per cent, higher during the four months.

Customs duties, including tariff revenues, collected in these four months were more than four times the amount recorded in the first four months of last fiscal—an increase of $90 billion.

Receipts from corporate income taxes decreased by $22 billion, or 16 per cent, YoY during the period, a CBO release says.

The federal government incurred a deficit of $94 billion in January this year, CBO estimates. This was $35 billion less than the deficit recorded in January 2025. Revenues were $47 billion more in January 2026 than they were in January 2025; outlays increased by $12 billion.

Total spending in January 2026 was $654 billion, $12 billion more than in January 2025.

Fibre2Fashion News Desk (DS)