US Cuts Bangladesh Tariffs To 19% Days After India Deal, Redrawing Trade Priorities In South Asia

The United States has moved quickly after its tariff breakthrough with India, finalising a fresh trade agreement with Bangladesh that sets most duties at 19 percent. The deal brings immediate relief to Dhaka’s garments sector, which dominates its exports, while reinforcing Washington’s new approach to South Asian trade. Bangladesh will gain zero reciprocal tariffs on select apparel made with American raw materials. In exchange, it has committed to open its markets to US machinery, vehicles, farm products and medical equipment, while easing regulatory and certification barriers. The agreement also includes aircraft purchases, energy imports and defence-related commitments. For Bangladesh, the timing is critical as elections approach and economic pressure mounts. For the US, it is about securing supply chains and expanding market access. For India, the development is a reminder that Washington is resetting trade rules rapidly. Competitive advantage will no longer be automatic. It will be negotiated, measured and time-bound.