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Bangladesh is considering granting greater duty exemptions on products imported from the United States to boost bilateral trade and reduce the existing imbalance between the two countries, according to sources.
The proposal came up during the second and final inter-ministerial meeting held at the commerce ministry on Sunday. The first meeting was convened the previous Wednesday.
Officials said the government is currently preparing a position paper addressing the high US tariffs on Bangladeshi exports, which is expected to be sent to the United States Trade Representative (USTR) within this week.
During the meeting, a wide range of issues was discussed, including intellectual property rights. Senior officials from the ministries of foreign affairs, finance, agriculture, food, health, industries, and ICT participated and shared their opinions.
A Bangladeshi delegation is expected to visit Washington soon, subject to confirmation from the USTR, to resume negotiations aimed at reducing the increased tariffs imposed on Bangladeshi exports.
As part of its preparation, the commerce ministry has been consulting with stakeholders, including local businesses, economists, and US-based firms operating in Bangladesh.
The ministry has already held discussions with US Wheat Associates, Chevron, Excelerate Energy, the U.S. Soybean Export Council (USSEC), and the US Cotton Association. It is scheduled to meet with the American Apparel and Footwear Association (AAFA) on Tuesday.
To secure a more favourable tariff structure and reduce the trade gap, Bangladesh is looking to increase imports of US-origin goods such as aircraft parts, edible oil, cotton, liquefied natural gas (LNG), and wheat.
In the 2025-26 national budget, over 100 products have been included for reduced or zero-duty benefits, not only for the US but also other countries. Bangladesh has already exempted tariffs on 190 US products as part of efforts to address the trade imbalance.
The average import duty currently imposed by Bangladesh on US goods stands at around 6.0 per cent. According to meeting sources, the government is weighing the option of granting zero-duty benefits on selected US products to promote reciprocal trade benefits.
In a significant development, the Trump administration announced on July 7 a 35 per cent tariff on Bangladeshi exports to the US, effective from August 1, 2025. This is a revision from an earlier proposed rate of 37 per cent announced in April.
US President Donald Trump reportedly conveyed the revised tariff plan in a letter to Bangladesh's Chief Adviser Muhammad Yunus.
In response, Bangladesh's National Security Adviser and the Commerce Adviser met USTR representatives on July 3. However, the meeting concluded without any breakthrough.
Bangladesh is seeking to negotiate a bilateral trade agreement with the US, following similar agreements Washington has signed with other countries. The commerce adviser has held several rounds of discussions with the USTR, but key issues remain unresolved.
The third and final day of the second round of Bangladesh-US negotiations ended on July 11, but several matters are still pending. Both sides have agreed to continue inter-ministerial consultations to iron out the differences.
According to the National Board of Revenue (NBR), Bangladesh exported goods worth $8.76 billion to the United States in FY2024-25, compared to $7.68 billion in the previous fiscal year.
On the other hand, imports from the US stood at $2.5 billion in FY2024-25, slightly down from $2.62 billion a year earlier.
The country's top export to the US remains ready-made garments, while scrap iron is the leading import from America.
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