US slaps 10pc tariff on Bangladesh
The United States has imposed a 10 per cent tariff on imports from Bangladesh under Section 301 of the US Trade Act of 1974, a move expected to increase costs for Bangladeshi exporters and complicate global supply chains.
Washington, however, has exempted a range of raw materials and critical products to minimise disruptions to American industries.
Foreign Ministry on Friday said the measure comes after investigations conducted by the Office of the United States Trade Representative (USTR) regarding use of forced labour.
“Effective July 24, 2026 at 12:01 am (Washington DC time), the tarriff ranges from a low of 10 per cent to a high of 12.5 per cent.
This replaces the temporary 10 per cent global tariff previously implemented under Section 122,” it added. “For Bangladesh, the tariff will be 10 per cent on all imports originating from Bangladesh. It will be applied in addition to existing Most-Favored-Nation (MFN) tariff rates,” he pointed out.
Foreign ministry also said, “The Government of Bangladesh remains fully committed to upholding international labour standards and will continue to engage closely with international partners to ensure the robust growth, compliance, and sustainability of Bangladesh’s critical export sectors.”
Meanwhile, Commerce Minister Khandaker Abdul Muktadir on Friday said that the tariff would not create any new impact.
“Under US law, the existing tariff imposed by the United States will expire after 150 days due to a legal requirement.
Once it expires, a new tariff will take effect. Although it will be introduced under a different name, the tariff rate will remain unchanged,” he told journalists after inaugurating a daylong free medical camp for tea workers in Sylhet Sadar upazila.
US President Donald Trump signed a presidential memorandum on 23 July directing the United States Trade Representative (USTR) to impose tariffs on imports from 60 economies over what Washington described as their failure to prohibit or effectively enforce restrictions on goods produced with forced labour.
Bangladesh is among 17 economies facing a 10 per cent tariff, alongside Argentina, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the United Kingdom.
Most of the remaining economies, including China, Brazil, Australia, Japan, South Korea, Saudi Arabia, Singapore, Thailand, Vietnam, the United Arab Emirates and South Africa, will face a higher tariff of 12.5 per cent, while imports from the European Union, Taiwan, Japan, South Korea and Switzerland will be subject to special arrangements based on existing Most Favoured Nation tariff rates.
The White House said Bangladesh received the lower tariff because it had undertaken commitments under a reciprocal trade agreement relating to restrictions on goods produced with forced labour.
“The Trade Representative shall impose a tariff of 10 per cent on goods of… Bangladesh,” the presidential memorandum said.
The memorandum added that the tariffs were intended “to obtain the elimination of the actionable acts, policies and practices” identified during the Section 301 investigations.
The decision follows investigations launched by the USTR in March this year covering 60 economies. In June, the USTR concluded that the trade practices of those economies were “unreasonable and burden or restrict US commerce”, making them subject to action under Section 301.
While the tariffs apply to almost all imports, the US administration has announced a broad list of exemptions aimed at protecting its own economy. The memorandum said raw materials would be exempt where “subjecting them to tariffs could lead to the unavailability of domestic supply”.
The exemptions also cover products that could cause economy wide disruptions, goods that cannot be produced in sufficient quantities or at reasonable prices in the United States, and products for which tariffs are unlikely to achieve the intended policy objective.
The United States has also announced plans to establish Tariff Rate Quotas (TRQs) for textile and apparel imports from Bangladesh, Cambodia, Indonesia and Malaysia for an initial period of three years.
The proposed TRQ is intended to soften the impact of the new tariffs on Bangladesh’s textile and apparel exports while encouraging greater use of American raw materials.
Under the system, a specified volume of eligible textile and apparel products from Bangladesh will be allowed to enter the US market without the additional 10 per cent Section 301 tariff, provided manufacturers use qualifying US cotton or textile inputs.
Once imports exceed the quota, or until the TRQ is formally introduced, the standard 10 per cent tariff will continue to apply.
The US administration plans to introduce the TRQ for Bangladesh, Cambodia, Indonesia and Malaysia for an initial period of three years, saying the mechanism is designed to encourage greater imports of US cotton and textile products while reducing reliance on inputs from supply chains considered to carry a higher risk of forced labour.
Until the quota system becomes operational, however, Bangladeshi textile and apparel exports covered by the proposed scheme will continue to face the full 10 per cent tariff.
Bangladesh remains heavily dependent on imported cotton to sustain its export oriented textile and ready-made garment industry, with the annual cotton import bill projected to reach between $4.5 billion and $5 billion in the 2025-26 fiscal year.
The country is expected to consume around 8.5 million bales of cotton, while domestic production is projected to reach only 252,000 bales, meeting less than 3 per cent of total demand.
The widening gap between domestic supply and industrial demand has made Bangladesh increasingly reliant on overseas suppliers, exposing the sector to currency fluctuations, freight costs and global supply chain disruptions.
Brazil has emerged as largest cotton supplier, accounting for around 25 per cent of imports, overtaking India as buyers increasingly favour its consistent quality and reliable shipments.
India remains a major source due to its geographical proximity, although its share has declined amid logistics challenges and trade related uncertainties.
The US also continues to play a strategic role by supplying premium quality cotton valued for its traceability and contamination control, with Bangladesh projected to import around one million bales of US cotton worth nearly $474 million in the 2025-26 marketing year.
The growing reliance on Brazil, India and the United States underscores Bangladesh’s continued dependence on imported raw materials to support its globally competitive garment industry.
According to the memorandum, the quotas are intended “to encourage the importation… of US cotton and textile goods, in order to reduce the reliance of such partners on inputs from other sources that are more likely to contain forced labour inputs.”
Until the quota mechanism becomes operational, however, the affected textile and apparel products from Bangladesh will continue to be subject to the 10 per cent Section 301 tariff.
The USTR said it received more than 1,600 written comments and heard testimony from over 100 witnesses before finalising the measures.
