US tariff on Bangladeshi goods to take effect on August 8

The United States will enforce a 20% counter-tariff on Bangladeshi products from 10:01am Bangladesh time on August 8, the White House confirmed Thursday.

The decision follows an executive order signed by US President Donald Trump, which stipulates the tariff will take effect seven days after signing, excluding the signing day.

In Eastern Time, the enforcement begins at 12:01am on the same date. Goods arriving in the US or released from warehouses after the deadline will be subject to the new rate.

Certain products will be exempt if shipped before 12:01am ET on August 7 and cleared from US warehouses by October 5.

The rate was reduced from a previously declared 35% counter-tariff, announced on July 31.

In April, Trump had initially threatened tariffs of up to 37% on exports from Bangladesh and several other countries over the US trade deficit. The move was suspended for three months to allow negotiations, which concluded with the reduced rate.

The US is Bangladesh’s largest market for ready-made garments, importing around $8 billion annually, while Bangladesh imports about $2 billion in goods from the US.