Bangladesh receives lowest tariff rate under new US decision

TBM Report

On July 23, 2026, the U.S. government announced the imposition of tariffs under Section 301 of the Trade Act of 1974 on 60 economies representing 86 countries globally. This measure comes after investigations conducted by the Office of the United States Trade Representative (USTR) regarding use of forced labour, said a press release of the Ministry of Foreign Affairs
Effective July 24, 2026 at 12:01 am (Washington DC time), the tarriff ranges from a low of 10% to a high of 12.5%. This replaces the temporary 10% global tariff previously implemented under Section 122.

For Bangladesh, the tariff will be 10% on all imports originating from Bangladesh. It will be applied in addition to existing Most-Favored-Nation (MFN) tariff rates. Bangladesh is among the 17 out of 86 countries globally that have been placed under the lower 10% tariff tier. Therefore, it retains Bangladesh’s competitive standing in the U.S. apparel and export market. 

While Bangladesh faces the 10% tariff, several major global apparel manufacturing competitors, specifically China, Vietnam, and Thailand will face the maximum 12.5% tariff rate. This distinct differential reinforces Bangladesh’s ongoing comparative advantage in the U.S. market relative to its high-tariff competitors.

Additionally, the USTR is considering establishing a three-year Tariff-Rate Quota (TRQ) for four countries, including Bangladesh, Cambodia, Indonesia, and Malaysia to waive Section 301 tariffs on goods made from U.S. cotton and textile inputs. This, when implemented, would also provide Bangladesh further competitive advantage and promote Bangladesh’s exports to the U.S. market.

The Government of Bangladesh remains fully committed to upholding international labor standards and will continue to engage closely with international partners to ensure the robust growth, compliance, and sustainability of Bangladesh’s critical export sectors.

Ferdous Ahmed, vice president of the Bangladesh Business Chamber of Canada (BBCC), in an interview with a group of journalists said that Canada looks forward to maintaining constructive, respectful, and mutually beneficial relations with the Government of Bangladesh. Bangladesh and Canada have long-standing people-to-people, trade, development, and education ties.

Our expectation is that the new government will continue to strengthen democracy, rule of law, human rights, good governance, press freedom, and an open investment climate. These areas are important for Bangladesh’s international reputation and for attracting more foreign investment. said Ferdous Ahmed….

Bangladesh Business Chamber of Canada (BBCC) is a dynamic bilateral chamber representing the Bangladeshi-Canadian business community and fostering economic cooperation between Bangladesh and Canada.

Since its establishment in 2013, BBCC has remained committed to supporting the entrepreneurial and professional aspirations of the Bangladeshi diaspora in Canada while promoting bilateral trade, investment, innovation, and cultural exchange between our two nations.

Through strategic networking, business advocacy, educational initiatives, and collaborative partnerships, BBCC continues to strengthen economic ties and create opportunities for businesses and professionals in both Canada and Bangladesh.