US President Donald Trump today announced new import tariffs on 70 countries, of which the highest rate has been set at 41%. The decision came just before the deadline (August 1) for finalizing the bilateral trade agreement.
Bangladesh has succeeded in setting a 20% tariff rate through negotiations with the US, which is comparable to the rates (19-20%) of rival garment exporting countries like Sri Lanka, Vietnam, Pakistan and Indonesia. As a result, the competitive position of the Bangladeshi garment industry remains.
India, with which a full agreement has not been reached, has received a 25% tariff rate.
National Security Advisor and Chief Negotiator Dr. Khalilur Rahman said, “We negotiated in line with our national interests and capabilities. The protection of the garment industry was the highest priority. In addition, we also worked towards our food security by committing to import agricultural products from the United States.”
He added, “We have been able to avoid a potential 35% counter-tariff, which is a big achievement for us. This is good news for our garment industry and millions of jobs. At the same time, we have strengthened access to the world’s largest consumer market.”
The new agreement includes not only tariff exemptions, but also reforms in the domestic policies of the importing country, which is one of the reasons for the trade imbalance in the eyes of the United States. The tariff rate imposed on each country is determined based on their commitments, the elimination of non-tariff barriers and security cooperation.
