Bangladesh has been assigned the lowest duty rate of 10 percent under a newly enacted US trade action, enabling the country to maintain a competitive advantage over key garment-exporting rivals such as China, Vietnam and Thailand.

The action follows a announcement on July 23 by the US government, which imposed fresh import duties under Section 301 of the Trade Act of 1974 targeting 60 economies encompassing 86 nations, following investigations by the Office of the United States Trade Representative (USTR) into forced labor practices.

The revised tariffs, which span between 10 percent and 12.5 percent, became effective at 12:01 am Washington DC time on Friday, taking over from the temporary 10 percent global levy previously enacted under Section 122.

According to Bangladesh's foreign ministry, goods exported from Bangladesh will be subject to the additional 10 percent duty on top of existing Most-Favored-Nation (MFN) tariff rates.

Bangladesh stands as one of just 17 nations among the 86 designated to be placed in the favorable 10 percent tariff bracket—a distinction expected to safeguard its market standing in the American apparel and overall export sectors.

Conversely, primary global garment manufacturing competitors, including China, Vietnam, and Thailand, have been assigned the peak duty rate of 12.5 percent.

This tariff difference is projected to bolster Bangladesh’s relative market position against competitors burdened by the higher rate.

In addition, the USTR is evaluating the implementation of a three-year Tariff-Rate Quota (TRQ) mechanism covering Bangladesh, Cambodia, Indonesia, and Malaysia.

This proposal would eliminate Section 301 duties on products manufactured using US-sourced cotton and textile materials.

Should it be adopted, the initiative would grant Bangladesh an extra commercial edge while incentivizing the uptake of American textile components and expanding Bangladeshi exports to the United States.

The Bangladeshi government reaffirmed its unwavering dedication to adhering to global labor standards and collaborating closely with international trade partners to foster robust development, regulatory compliance, and long-term sustainability across its vital export industries.