BD strives for fairer tariff deal with US

Bangladesh is making progress in resolving various issues related to the reciprocal tariff imposed by the United States (US), aiming to secure a fairer tariff deal.

Commerce Secretary Mahbubur Rahman told The Financial Express via WhatsApp call, "We are continuing discussions with the relevant US authorities on the reciprocal tariff issue. This is a follow-up to the previous round of talks, and we are addressing several unresolved matters from the last phase."

He said the first day of the current meeting resumed from where the previous discussions had ended. "Achieving a positive outcome on the US tariff issue will take time," he explained.

"The current tariff arrangement is one-sided, with the US unilaterally imposing rates. We are negotiating to address this imbalance."

Mr Rahman also responded to misleading reports published in several news outlets, which suggested there was no need for discussions since Bangladesh had already accepted all the US conditions.

"If we had accepted everything, why would we still be negotiating?" he questioned. He added, "We are working relentlessly to protect Bangladesh's export market in the US."

The current three-day round of tariff negotiations with the United States Trade Representative (USTR) began last Tuesday in Washington, DC. The second day of talks commenced at 9:00 am US standard time, according to the Bangladesh Embassy in Washington.

The meetings are being attended by officials from Bangladesh's Ministry of Commerce and the USTR.

The Bangladesh delegation is led by Commerce Adviser Sk Bashir Uddin, with National Security Adviser Khalilur Rahman, Commerce Secretary Mahbubur Rahman, and Additional Secretary Nazneen Kawshar Chowdhury also participating in the high-level talks.

All members of the Bangladesh team remain hopeful about achieving a fairer tariff agreement through the ongoing negotiations.

Meanwhile, in an effort to strengthen bilateral ties and improve its negotiating position, Bangladesh has placed an order to purchase 25 Boeing aircraft from the US. It has also signed a deal to import 0.7 million tonnes of US wheat over the next five years, including 0.22 million tonnes in the first year.

These import plans, designed to narrow the trade gap between the two countries, are estimated to cost over $3.0 billion.

In FY24, Bangladesh exported goods worth $7.68 billion to the US, while imports from the US stood at $2.5 billion in FY25. The largest import from the US is iron scraps or iron pieces, while the top Bangladeshi export to the US is ready-made garments.

Several Bangladeshi businesspersons are currently in the US to hold negotiations with their trade partners. In addition to general trade discussions, they will also talk about soybean and wheat imports with respective American suppliers.

A senior official at the commerce ministry, involved in the ongoing talks, expressed hope that the US might offer favourable tariff rates to Bangladesh.

"President Donald Trump has already reduced additional tariffs on some countries. We hope Bangladesh will benefit from a similar approach," he said.

Before the latest round of talks, the commerce ministry held consultations with local businesses, economists, and relevant ministries to gather feedback.

It also engaged in meetings with several US-based organisations including US Wheat Associates (USW), Chevron, Excelerate Energy, US Soybean Export Council (USSEC), and the US Cotton Association. Also, a meeting was held with the American Apparel and Footwear Association (AAFA) on July 22.

In the FY26 national budget, over 100 products were added to the duty-free list to benefit not only US trade but also other trading partners.

Currently, Bangladesh has set tariffs on 190 products at zero to help reduce its trade deficit with the US. The average duty Bangladesh levies on imports from the US is around 6.0 per cent.

On July 7, the Trump administration announced plans to impose a 35-per cent tariff on goods exported from Bangladesh to the US, effective from August 1, 2025.

US President Donald J Trump formally communicated this decision in a letter to Chief Adviser of Bangladesh's interim government, Muhammad Yunus. This new rate is 2.0 per cent lower than the originally declared 37 per cent tariff issued on April 2, which was supposed to take effect from April 9.

Earlier, on July 3, Bangladesh's National Security Adviser and Commerce Adviser held a meeting with USTR representatives. That round of talks concluded without any concrete outcome.

In the meantime, several countries have successfully signed bilateral trade agreements with the US through negotiations. Bangladesh is also aiming to finalise a similar agreement, although some contentious issues remain unresolved.

This is why a delegation led by the commerce adviser has held several meetings with the USTR in recent months. However, both sides could not reach a consensus on all issues in the last round of talks.

The third and final day of the second round of negotiations concluded on July 11, 2025. As multiple issues remained unsettled, both countries agreed to continue inter-ministerial discussions to move forward.

Also, representatives from the Bangladesh Textile Mills Association (BTMA), City Group, Meghna Group Industries, T K Group of Industries, and the LPG Operators Association of Bangladesh (LOAB) are currently in the US.

They are holding discussions with their respective US counterparts to support the government's ongoing diplomatic and trade efforts.

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