US Tariffs on Imports from Bangladesh

Bangladesh saw a dramatic tariff reduction from 37% (IEEPA) to 10% under Section 122 following the Feb 20, 2026 SCOTUS ruling — a 27-point drop that transforms the economics of Bangladeshi garment sourcing. US imports from Bangladesh total approximately $9B annually, with apparel and garments comprising roughly 90% of the total.

Bangladesh is the world's second-largest garment exporter (after China) and the US is its largest market. There is no bilateral FTA, and Bangladesh was removed from GSP eligibility in 2013 following the Rana Plaza factory collapse, though reinstatement discussions have occurred. The trade relationship is almost entirely defined by the ready-made garment sector, which employs over 4 million workers in Bangladesh.

Key Products Imported from Bangladesh

Top imports are dominated by apparel and garments, including knit shirts, trousers, jackets, and woven garments. Other imports include home textiles, jute products, leather goods, and seafood (shrimp). The garment sector accounts for roughly 90% of Bangladesh's exports to the US.

Recent Changes

Feb 20, 2026: SCOTUS struck down IEEPA tariffs 6-3 — Bangladesh's rate plunged from 37% to 10% Section 122 (effective Feb 24, expires ~July 24, 2026). A 27-point reduction that is transformative for the garment sector, where margins are thin. Section 232 steel and aluminum tariffs of 50% remain unchanged. Bangladesh's workplace safety reforms under the International Accord continue strengthening its trade reputation. GSP reinstatement discussions remain ongoing but have not concluded.

Tips for Importers

The 27-point tariff reduction is a game-changer for garment sourcing from Bangladesh. Total landed cost for apparel is now approximately 10% Section 122 plus ~16.5% MFN apparel duties (~26.5% combined) — dramatically lower than the old 37% + 16.5% (~53.5%). Bangladesh is now on a level tariff playing field with Vietnam, India, and Cambodia (all at 10% Section 122), so competition shifts to labor costs, capacity, and compliance. Ensure your supply chain meets labor and safety standards — CBP scrutinizes forced labor under the UFLPA. First-sale valuation remains valuable for reducing dutiable value. Plan for the Section 122 expiry (~July 24, 2026): if it lapses, Bangladeshi garments would face only MFN rates, the most favorable treatment in years.