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The United States has reduced the reciprocal tariff on products imported from Bangladesh to 20 per cent from the previous announced 35 per cent.
The tariff adjustment follows an executive order signed by President Donald Trump on Thursday local time, under which the US will impose new reciprocal tariffs ranging between 10 per cent and 41 per cent on a wide range of goods imported from several countries and foreign territories.
The lower tariff is expected to enhance Bangladeshi exports to the US, especially in the apparel and clothing sector.
The breakthrough followed a final round of discussions in Washington, D.C., between Bangladeshi officials and the Office of the United States Trade Representative (USTR), the primary agency responsible for overseeing US trade policy.
During the tariff talks, the Bangladeshi delegation was led by Commerce Adviser Sk Bashir Uddin and included National Security Adviser Khalilur Rahman, Commerce Secretary Mahbubur Rahman and a senior official from the commerce ministry.
On the American side, Brendan Lynch, Assistant United States Trade Representative, headed the delegation, along with officials responsible for trade and tariff matters, according to media report.
According to the order, imports from India will face a 25 per cent tariff, while goods from Taiwan and Sri Lanka will be subject to a 20 per cent duty. South Africa will be hit with a 30 per cent tariff.
Other countries affected by the decision include Pakistan (19 per cent), Afghanistan (15 per cent), Brazil (10 per cent), Indonesia (19 per cent), Malaysia (19 per cent), Myanmar (40 per cent), the Philippines (19 per cent), and Vietnam (20 per cent).
The White House has not yet clarified whether the new tariffs are permanent or part of an interim trade enforcement measure. The announcement has raised concerns among exporters and trade officials in the affected countries, including Bangladesh.
In a social media post, BTMA President Showkat Aziz Russell said, “The United States has set the tariff on Bangladeshi products at 20 per cent, which is on par with or slightly more favourable than that imposed on many other countries.”
He attributed this significant outcome to the relentless efforts of Adviser SK Bashir Uddin and his dedicated team, both in Bangladesh and in Washington, D.C.
Russell noted that the adviser is likely to extend his stay in the US, as he believes there is still more to achieve. Remarkably, he is perhaps the only negotiator to have boldly raised the issue of narrowing up to 75 per cent of the trade deficit between Bangladesh and the United States—within the shortest possible time.
A BTMA delegation and prominent business leaders were also present during the negotiation process in Washington.
“No other country has taken such a bold step in trade negotiations with the US, which uniquely positions Bangladesh to seek even greater preferential access to the American market,” added the BTMA President.