Bangladesh will face a 20% tariff from the United States, President Donald Trump confirmed in an executive order dated July 31, 2025.
This is a significant step down from the previously proposed 35% tariff, but may still have a sizeable impact on the country's shipments to its single-biggest export destination.
According to a study published by local think- tank Centre for Policy Dialogue, even a 5% additional tariff on the Freight on Board (FOB) price would be difficult to absorb for Bangladesh's readymade garment industry, which accounts for over 80% of the nation's annual export earnings.
The White House also informed that the new tariff regime would not go into effect on Friday. Instead, the tariffs will be implemented on August 7 to give authorities sufficient time to make the necessary changes.
The breakthrough came after a final round of discussions in Washington DC between the Office of the United States Trade Representative (USTR) and a Bangladesh delegation led by Commerce Adviser Sheikh Bashir Uddin.
Over the past months, Bangladesh has ramped up imports of key American goods in an effort to defuse trade tensions and bring down the tariff rate, including ordering 25 aircraft from Boeing.
Additionally, Bangladesh is boosting imports of wheat, soybean oil and cotton from the United States.
Canada hit with 10% tariff increase
The biggest move in a global context was the 10% increase to Canada's tariff rate, which Trump said was "in response to Canada's continued inaction and retaliation," around stemming the flow of fentanyl into the US, according to a fact sheet on the executive order.
Ontario Premier Doug Ford said the higher 35% tariff rate from the US on Canadian goods is "concerning," especially with other tariffs still in place.
In a social media post, Ford called on Canada's federal government to "hit back" with a 50% tariff on US steel and aluminum.
"Canada shouldn't settle for anything less than the right deal. Now is not the time to roll over. We need to stand our ground," he posted on X. "The federal government needs to maximize our leverage and stand strong in the face of President Trump's tariffs."
Canada is the top buyer of US exported goods, importing $349 billion worth last year, according to Department of Commerce data, while Canada shipped $413 billion worth of goods to the US last year, the third-highest source of foreign goods.
China: The elephant in the room
Despite all the countries mentioned in the deal, the fate of China's economic future with the US remains uncertain, leaving one of the world's most important trade relationships in limbo.
There are signs Beijing wants a deal. It sent officials to three different sets of talks – first in Geneva in May, London in June, and earlier this week in Stockholm.
The two sides have now agreed to seek a 90-day extension of their truce, which is due to expire on 12 August.
Beijing will want a continued suspension on US export controls on technology like semiconductors in return for a steady supply of rare earth minerals.
"We're moving along with China. We're doing fine with China," Trump told reporters at the White House on Wednesday. "I think we're going to have a very fair deal with China."
What about other countries?
- Pakistan emerged with lowest tariff rate of any South Asian country, seeing its rate slashed from 29% to 19%.
- Cambodia saw a 30% decrease in its tariff, dropping down from 49% to 19%.
- The Euopean Union was given a slight reprieve, with a 5% reduction, bringing the rate from 20% to 15% on most goods.
- A 10% tariff was handed to Brazil. However, Trump signed an executive order imposing an additional 40% tariff on Brazil, bringing the total tariff rate for the country to 50%.
- Vietnam's 20% rate was confirmed. Thailand will face 19%, and the UK 10%.
- The day prior, Trump announced India would face a 25% tariff starting August 1, along with an additional unspecified penalty. That tariff rate was confirmed.
- Syria faces the second-highest tariff rate at 41%, followed closely by Laos and Myanmar, both nations hit with 40%.
- Any country with which the United States has a trade deficit will face a minimum 15% rate. The handful of countries with a surplus will face 10%.
- Earlier, an agreement between the US and Mexico extended the current 25% tariffs on certain Mexican goods imported to the United States for 90 days.
- Trump announced a new trade deal with South Korea yesterday, setting a 15% tariff.
- On Tuesday, Trump announced a a long-awaited trade agreement with Japan, setting the tariff rate at 15%.
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