The United States has emerged as Bangladesh's second-largest trading partner, overtaking India for the first time in 16 years.
Bangladesh's merchandise trade with the US reached $12.67 billion in the 2025-26 fiscal year, compared with $10.72 billion with India, whilst China remained far ahead as the largest partner.
The shift reflects a sharp surge in bilateral commerce driven primarily by increased imports from America.
Bangladesh's imports from the United States increased sharply during the last fiscal year, rising 43 per cent to $3.56 billion, from $2.49 billion a year earlier.
Trade with India, conversely, weakened as both imports and exports declined. The transformation in trade rankings follows a reciprocal trade agreement signed between Dhaka and Washington in February.
Bangladesh will purchase $3.5 billion of US agricultural products and $15 billion of energy products over 15 years, as part of a broader reciprocal trade agreement with Washington, alongside commitments to procure Boeing aircraft.
Meanwhile, Bangladesh-India commercial relations have faced growing friction. In March 2025, Bangladesh decided to stop importing yarn from India through land ports.
India subsequently withdrew a facility allowing Bangladeshi goods to be exported to third countries through Kolkata airport.
India also introduced restrictions on a range of Bangladeshi exports, including garments, food products, jute goods, cotton and yarn waste, plastic products and wooden furniture.
The trade statistics revealed that the US outpaced India during four out of the first six months of 2026.
After being in the second position for 16 years, India has now slipped to third place, whilst China maintained its dominant position with trade volumes significantly exceeding both countries.