🇮🇳 India vs 🇧🇩 Bangladesh Tariffs — Import Duty Comparison (2026)

🇮🇳

India

Section 122 Rate10%

Section 301N/A

Section 232 (Metals)50%

Trade AgreementNone

Trade Volume$130B

Base Effective Rate10%

🇧🇩

Bangladesh

Section 122 Rate10%

Section 301N/A

Section 232 (Metals)50%

Trade AgreementNone

Trade Volume$9B

Base Effective Rate10%

Product Overlap

Both countries export these product categories to the US:

Textiles

🇮🇳 India Advantages

+Higher US trade volume ($130B vs $9B)
+Unique export categories: Pharmaceuticals, Diamonds, Petroleum products

🇧🇩 Bangladesh Advantages

+Unique export categories: Clothing, Knitwear, Footwear

When choosing between India and Bangladesh as import sources, US businesses must weigh tariff rates, trade agreements, product availability, and supply chain logistics.

Both countries face the same base tariff rate of 10% on most goods entering the United States.

Both countries export Textiles to the United States, creating direct competition in these sectors.

In terms of trade volume, India accounts for approximately $130B in bilateral trade with the US, exceeding Bangladesh's $9B.

Both countries are subject to the 10% Section 122 tariff imposed on February 24, 2026, following the Supreme Court's ruling striking down IEEPA tariffs. This rate expires approximately July 24, 2026 unless Congress extends it.

India's advantages include: Higher US trade volume ($130B vs $9B); Unique export categories: Pharmaceuticals, Diamonds, Petroleum products. Bangladesh's advantages include: Unique export categories: Clothing, Knitwear, Footwear.

With equivalent base tariff rates, the choice between India and Bangladesh depends primarily on product-specific duties, shipping costs, lead times, and supply chain considerations rather than the base tariff rate.

Frequently Asked Questions

Which has lower tariffs — India or Bangladesh?

Both countries face the same base Section 122 tariff of 10%. The difference comes from product-specific duties, Section 301 (China only), and Section 232 (metals).

Should I switch sourcing from India to Bangladesh?

The decision depends on more than tariff rates. Consider total landed cost (shipping, insurance, customs fees), lead times, quality standards, minimum order quantities, and supply chain reliability. With equivalent base rates, focus on non-tariff factors.

Do both India and Bangladesh face the same Section 122 tariff?

Yes, both countries are subject to the 10% Section 122 tariff imposed on February 24, 2026. This flat rate replaced the variable IEEPA tariffs struck down by the Supreme Court. It expires approximately July 24, 2026.

What products overlap between India and Bangladesh exports to the US?

Both countries export Textiles to the US. India has total bilateral trade of ~$130B while Bangladesh has ~$9B.