Bangladesh Offers to Buy U.S. Cotton to Avoid Reciprocal Tariff

09-Apr-2025 01:00 PM

Dhaka: In response to the 37% reciprocal tariff imposed by the United States on Bangladeshi products, Bangladesh has offered to import American agricultural goods, including duty-free cotton, to mitigate the impact on its textile industry.

Bangladesh is the world’s second-largest exporter of readymade garments after China, and the U.S. is a key market.

To avoid losing this market, Bangladesh's chief advisor has written to the U.S. President, requesting a three-month postponement of the new tariffs.

In exchange, Bangladesh has proposed several concessions—importing U.S. cotton, granting access to Elon Musk’s Starlink, and opening sectors like civil aviation and defense to American firms.

Other garment-exporting countries like Vietnam and Cambodia are also making similar offers to avoid being hit by the tariff. A 37% duty could severely damage Bangladesh’s exports and potentially shift the U.S. market share towards India.