# Bangladesh Achieves Lowest US Tariff Rate, Enhancing Competitive Advantage

*Bangladesh has secured the lowest tariff rate of 10 percent under a new US trade measure, helping the country retain a competitive edge over major apparel-exporting rivals.*

July 24, 2026 · Economy

Bangladesh has secured the lowest tariff rate of 10 percent under a new US trade measure, helping the country retain a competitive edge over major apparel-exporting rivals, including China, Vietnam and Thailand. The US government announced tariffs under Section 301 of the Trade Act of 1974 on 60 economies representing 86 countries globally following investigations by the Office of the United States Trade Representative (USTR) into the use of forced labour. The new tariffs, ranging from 10 percent to 12.5 percent, took effect at 12:01 am [Washington DC time] today, replacing the temporary 10-percent global tariff previously imposed under Section 122. Under the decision, imports originating from Bangladesh will face a 10-percent tariff, in addition to the existing Most-Favored-Nation (MFN) tariff rates, said the foreign ministry here today.

Bangladesh is among only 17 of the 86 countries placed in the lower 10-percent tariff tier, a position expected to help preserve its competitiveness in the US apparel and broader export market. In contrast, several of Bangladesh's major competitors in global apparel manufacturing, including China, Vietnam and Thailand, have been placed under the maximum 12.5-percent tariff rate. The tariff differential is expected to reinforce Bangladesh's comparative advantage in the US market relative to competitors facing the higher rate.

Meanwhile, the USTR is considering establishing a three-year Tariff-Rate Quota (TRQ) for Bangladesh, Cambodia, Indonesia and Malaysia that could waive Section 301 tariffs on goods manufactured using US cotton and textile inputs. If implemented, the facility could provide Bangladesh with an additional competitive advantage while encouraging greater use of US textile inputs and supporting further expansion of Bangladeshi exports to the American market.

The government reaffirmed its commitment to upholding international labour standards and continuing close engagement with international partners to ensure robust growth, compliance and sustainability of the country's critical export sectors. The new tariff measure is expected to bolster Bangladesh's export-oriented industries, particularly in the apparel sector, which is a major contributor to the country's economy.

The move comes at a time when Bangladesh's apparel industry is facing increasing competition from other low-cost manufacturing countries. By securing the lowest tariff rate, Bangladesh is now better positioned to maintain its market share in the US, one of its largest export destinations. The new tariff structure is also expected to encourage more US companies to source from Bangladesh, further strengthening the bilateral trade relationship.

## Sources

- BSS

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Source: https://pulsetoday.com.bd/en/economy/bangladesh-secures-lowest-us-tariff-gains-competitive-edge