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A favourable tariff deal for Bangladesh hinges on Donald Trump's discretion, officials say as a crucial meet on reciprocal tariffs between Bangladesh and the United States is expected tomorrow in Washington.
National Security Adviser under the post-uprising government Khalilur Rahman and Commerce Adviser of Bangladesh Sk Bashir Uddin are now in the USA discussing matters of securing a fairer tariff deal or rate. They already sat with the United States Trade Representative (USTR) representatives on July 3, 2025.
The next follow-up meeting with the USTR is expected to take place on July 09, 2025 in Washington, DC.
Contacted over the phone, the Commerce Adviser said, "The fate of a favorable or unfavorable tariff decision for Bangladesh depends on the Donald Trump administration."
He holds the hope for good tariff rates for Bangladesh. "We are trying our best to secure good tariff rates. We are still hopeful and positive to get a good decision on tariff issue that would be better for Bangladesh. The USTR has assured us."
On April 02, the Trump Administration announced imposition of reciprocal tariffs on all US trading partners. Bangladesh currently pays an average of 15 per cent in tariffs on exports to the US Market. The Trump administration announced an additional tariff of 37 per cent, bringing the total to a stiff 52 per cent.
The new rate was supposed to take effect on April 09.
After the levying of reciprocal tariffs, Chief Adviser of Bangladesh interim government Prof Yunus and other nations wrote to the US administration to postpone the punitive tariffs that touched off global trade jitters.
The commerce adviser of Bangladesh also wrote to the USTR, outlining Bangladesh's trade action plans and commitments in greater detail in order to leapfrog the impending crisis.
After request from the different countries, including Bangladesh, White House announced a 90-day pause on the Reciprocal Tariff Policy on April 9, 2025.
Concerns remain about the potential impact on Bangladesh-US trade once the pause ends. The suspension was supposed expire on 9 July. But, instead, will expire on August 01, 2025.
On May 07, the USTR, in response to Bangladesh's request, sought a written proposal from the Bangladesh government to negotiate on the imposition of tariffs.
A senior commerce official hopes that the US "may offer good tariff rates in favour of Bangladesh as US President Donald Trump has reduced the additional tariff on Vietnamese goods from 46 per cent to 20 per cent".
According to the BBC, the US and China has already signed a trade agreement to water down tensions between the economic superpowers.
A source said a tariff deal was supposed to be in the making with the US. A draft deal has been prepared -- with some tradeoffs -- and necessary negotiations on this issue are going on.
The government considers purchasing aircraft and wheat from the US. Besides, it plans to request the local private traders to import more items, including cotton and wheat, from the USA.
The United States is Bangladesh's largest single-country export destination, accounting for 17.09 per cent of total exports in FY 2023-24, according to the Export Promotion Bureau (EPB).
Bangladesh's top export item to the US is ready-made garments, which currently faces most favoured-nation (MFN) tariff rate of 11.8 per cent on knitwear and 9.91 per cent on woven garments.
in report, Bangladesh Foreign Trade Institution (BFTI) fears a tariff rate of 37 per cent may significantly erode the price competitiveness of Bangladeshi apparel on the US market, leading to a decline in export volume, loss of market share to competing countries with preferential access, and adverse impacts on Bangladesh's export earnings, employment, and overall trade balance.
According to the United States Trade Representative (USTR), the US goods trade deficit with Bangladesh was U$6.2 billion in 2024, a 2.0-percent increase (U$123.2 million) over 2023.
Currently, Bangladesh faces reciprocal tariffs of 37 per cent because the total trade barriers on US imports -- including tariffs and non-tariff measures -- amount to 74 per cent, according to the USTR estimates.
The Trump administration has stated that it had generously extended a 50-percent tariff discount to all countries, which means Bangladesh is faced with a 37-percent tariff on exports to the US.
According to the White House, the objective of this policy is to address the United States' substantial trade deficit and to counteract the nonreciprocal trade practices of its partners -- many of whom have long benefited from lower US tariffs while maintaining higher tariff and non-tariff barriers on American exports.
In 2023, the US recorded a trade deficit of USD 1.29 trillion with the rest of the world, according to The International Trade Centre (ITC).
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