Washington DC / Dhaka – A new 20% reciprocal tariff on Bangladeshi goods entering the United States will take effect at 12:01am EDT (10:01am Bangladesh time) on August 7, seven days after US President Donald Trump signed a fresh executive order, the White House confirmed late on July 31.
This marks a significant shift in the ongoing tariff standoff, with the rate slashed from the previously declared 35%, following weeks of negotiations between Washington and Dhaka. The revised rate is part of a broader recalibration of US trade policy under Trump’s “fair and reciprocal trade” strategy, aimed at addressing bilateral trade imbalances.
According to the White House notice, the revised tariff will apply to goods “entered for consumption, or withdrawn from warehouse for consumption” starting August 7. However, shipments already in transit—loaded onto a vessel before 12:01am EDT on August 7 and entering consumption before October 5—will be exempt from the new duty rate.
The decision follows a sequence of tariff adjustments dating back to Trump’s April 2 announcement imposing steep duties on several countries over trade deficit concerns. Bangladesh was initially hit with a 37% tariff, later reduced to 35% in a letter sent by President Trump to Bangladesh’s interim government chief adviser, Nobel Laureate Professor Muhammad Yunus.
After a temporary three-month suspension of the tariffs, which expired on July 9, countries were given until July 31 to negotiate terms. Bangladesh’s efforts, backed by key trade stakeholders and government agencies, appear to have resulted in a more favorable outcome than initially feared.
The United States remains Bangladesh’s top export destination, particularly for ready-made garments (RMG), with annual exports exceeding $8 billion. Conversely, imports from the US hover around $2 billion—highlighting the significance of Dhaka’s access to the American market amid an increasingly protectionist global trade climate.
Industry insiders warn the new tariff, while lower than earlier figures, could still impact Bangladesh’s RMG sector competitiveness unless mitigated by preferential trade talks or broader bilateral agreements.