Bangladesh Secures 20% Tariff Rate in U.S., Strengthening Position Over India
PoriPurno News Desk | August 10, 2025
After prolonged negotiations, Bangladesh has successfully reduced the tariff on its apparel exports to the United States from 35% to 20%, a move expected to significantly enhance its competitive edge over India in the U.S. market.
According to sources, India had made several attempts over the past month to derail the negotiations between Dhaka and Washington. Reports indicate that details of the trade agreement were leaked to the media before finalization, allegedly with the involvement of high-ranking officials. Despite these challenges, Bangladesh managed to secure the favorable tariff rate.
Under the new arrangement, the U.S. has imposed a 25% tariff on Indian apparel exports, along with additional penalties. Pakistan has secured a 19% tariff rate, creating a new competitive landscape for South Asian exporters in the American market.
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Industry stakeholders in Bangladesh have welcomed the decision, stating that the lower tariff will allow local exporters to offer more competitive pricing in the U.S., benefiting millions of garment workers.
Economic analysts note that the success of both Dhaka and Islamabad in securing better trade terms will play a crucial role in countering Delhi’s regional dominance. They emphasize that this achievement is not only an economic gain but also a symbolic diplomatic victory for Bangladesh.
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