In a significant move that has raised concerns in New Delhi’s trade circles, Bangladesh’s interim government has signed a landmark mutual tariff agreement with the United States. Under this new deal, the White House has agreed to slash the import duty on Bangladeshi products from 20% to 19%.

This development comes shortly after the US reduced tariffs on Indian goods to 18%, placing Bangladesh in direct competition with India in the American market. Trade Advisor Sheikh Bashiruddin stated that this agreement marks the beginning of a new era in bilateral relations, ensuring a stronger presence of Bangladeshi goods in US stores.

Historically, Donald Trump had imposed a staggering 37% tariff on Bangladeshi exports, which was brought down to 20% in August following intense negotiations. The further reduction to 19%, along with a promise to make several textile items completely duty-free, is seen as a major diplomatic victory for Chief Adviser Muhammad Yunus. While the specific list of duty-free items remains confidential, the pact is expected to provide a massive boost to Bangladesh’s garment industry, potentially challenging India’s dominance in the sector.