Bangladesh Secures 20% Tariff Rate With US, Avoids Heavy Penalties; India Hit With 25% Amid Trade Tensions
A Trade Win for Bangladesh, Says Muhammad Yunus
Chief Adviser of Bangladesh’s Interim Government, Muhammad Yunus, has hailed the country’s latest trade agreement with the United States as a “landmark diplomatic victory.” In a statement issued on social media platform X, Yunus praised the tariff negotiators for securing a deal that keeps Bangladesh’s apparel industry globally competitive.
“We proudly congratulate the Bangladesh tariff negotiators on securing a landmark trade deal with the United States, a decisive diplomatic victory,” Yunus wrote.
🔍 Bangladesh Secures Competitive Tariff Rate
- The 20% tariff rate agreed upon is on par with apparel-exporting countries like:
- Vietnam
- Sri Lanka
- Pakistan
- Indonesia
- By contrast, India received a 25% tariff rate after failing to strike a comprehensive agreement.
“Bangladesh’s relative competitiveness in apparel exports remains unaffected,” Yunus noted.
🧵 Apparel and Agriculture Prioritized in Deal
According to National Security Advisor Dr. Khalilur Rahman, who led the negotiations:
- Protecting the apparel sector was a top priority.
- Bangladesh focused its purchase commitments on US agricultural products to:
- Support food security
- Build goodwill with US farming states
“Today, we successfully avoided a potential 35% reciprocal tariff. That’s good news for our apparel sector and the millions who depend on it,” Dr. Rahman said.
India Hit with Higher Tariff, Trade Relations Strained
Meanwhile, India was slapped with a 25% tariff rate, and relations with the US have cooled over:
- New Delhi’s continued oil trade with Russia
- India’s response to anti-India commentary from Dhaka under the Yunus-led regime
US Secretary of State Marco Rubio acknowledged India as a strategic partner but noted ongoing differences.
“You’re not going to align 100% of the time,” Rubio said, referencing India’s discounted oil purchases from Russia.
📈 What This Means for Bangladesh
Yunus framed the deal as a turning point for Bangladesh’s global economic position, stating:
“This achievement underscores Bangladesh’s rising strength on the global stage and opens the door to greater opportunities, accelerated growth, and lasting prosperity.”
Trump’s Tariff Blitz Hits 70 Countries
As part of a broader trade strategy, US President Donald Trump recently announced:
- New tariff rates of up to 41%
- Impacting over 70 countries
- Linked not just to trade but to domestic policy reforms
Trump noted that some countries failed to align on economic and national-security matters, leading to higher tariffs.
✅ Conclusion
Bangladesh’s ability to secure a favorable tariff deal with the US marks a significant diplomatic win, especially when compared to regional counterparts like India. With its apparel sector protected and new trade channels open, the country may be poised for an economic boost — while its largest neighbor faces trade headwinds.
Also Read : India Responds Calmly to US Tariff and Criticism Over Russian Oil Purchases
