Bangladesh signed a trade agreement with the United States at 10:00 pm Bangladesh time Monday. Following the deal, the reciprocal tariff imposed by the US on Bangladeshi exports has been reduced by 1 percentage point.

As a result, the tariff rate on Bangladeshi goods has fallen from 20 per cent to 19 per cent.

At the same time, garments manufactured using cotton and synthetic fibres imported from the United States will face no reciprocal tariff when exported to that country.

In other words, apparel produced with US-sourced raw materials will not be subject to any reciprocal duty upon export to the US, according to sources at the Ministry of Commerce.