Bangladesh will replace Indian cotton with U.S.-produced cotton as a result of the U.S.-Bangladesh trade deal that was inked on Monday (February 9, 2026), said a spokesperson for the interim government in Dhaka. India exported to Bangladesh cotton yarn worth $1.6 billion in 2024 and manmade fibre (MMF) yarn worth nearly $85 million. Bangladeshi authorities have said that they will now shift focus to the market in the U.S., which is the largest textile market for Bangladeshi manufacturers. “It appears at first that if Bangladesh produces textile products using raw cotton from the U.S., then Bangladesh will save money as the 19% tariff will be reduced to zero. He further said that Bangladesh will have to ensure that the U.S.-supplied cotton matches the cotton from other countries, including India and Egypt.

Source: The Hindu February 10, 2026 15:04 UTC