Bangladesh secures 19% US tariff rate following massive Boeing aircraft deal.

Bangladesh has officially secured a reduced 19% reciprocal tariff under a new trade agreement with the United States. This deal, signed on February 9, 2026, marks a major shift in the economic relationship between the two nations. A central part of the agreement involves Bangladesh purchasing 25 aircraft from the U.S. manufacturer Boeing.

The Aviation Connection

To help ease trade tensions and lower tariffs, the interim government of Bangladesh committed to a massive fleet expansion. The deal is estimated to cost between Tk 30,000 and Tk 35,000 crore. According to industry reports, the first part of this order includes 14 aircraft. These consist of eight Boeing 787-10 Dreamliners, two 787-9s, and four 737-8 MAX jets.

This move is seen as "diplomatic currency" to secure better market access for Bangladeshi goods. By choosing Boeing over competitors like Airbus, Bangladesh aims to narrow its trade deficit with the U.S. and strengthen bilateral ties.

Impact on the Textile Industry

The agreement provides a significant boost to Bangladesh's Ready-Made Garment (RMG) sector. This industry accounts for over 80% of the country's export earnings. Under the new rules, garments made with U.S.-produced cotton and man-made fibers will receive zero reciprocal tariffs.

Commerce Secretary Mahbubur Rahman noted that this mechanism creates a "cotton-for-garments" logic. It encourages Bangladesh to import more U.S. raw materials in exchange for duty-free access to the American market.

Regional Competition and Geopolitics

The deal was signed in Washington by USTR Jamieson Greer and Bangladesh Commerce Adviser Sheikh Bashir Uddin. It places Bangladesh in a competitive position compared to its neighbors.

• India recently secured an 18% tariff rate.
• Vietnam faces a 20% tariff.
• Pakistan and Indonesia are also at 19%.

Experts from organizations like IATA suggest that such large-scale aircraft orders are often used as strategic tools in international trade negotiations.

Looking Ahead

This agreement comes just days before Bangladesh’s February 12 general election. The interim government, led by Muhammad Yunus, fast-tracked the deal to ensure economic stability for the incoming administration. Beyond aviation and textiles, the pact includes provisions for importing U.S. wheat, soybeans, and LNG, while also addressing intellectual property rights and e-commerce standards.

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