[🇧🇩] Trump's Victory/Tariff/ Bangladesh

[Saif]

Commerce Advisor Sk Bashir proved his mettle: Energy Adviser

Commerce Advisor Sk Bashir Uddin proved his mettle over successful US tariff negotiations, Energy Adviser Fouzul Kabir Khan said on Friday.

en.prothomalo.com

Commerce Advisor Sk Bashir proved his mettle: Energy Adviser
Staff Correspondent Dhaka
Updated: 01 Aug 2025, 18: 12

Advisers Muhammad Fouzul Kabir (L) and Sk Bashiruddin

Commerce Advisor Sk Bashir Uddin has proved his mettle over successful tariff negotiations with the US, Adviser to the Ministry of Power Energy and Mineral Resources Muhammad Fouzul Kabir Khan said on Friday.

In a Facebook post of Friday afternoon, Fouzul Kabir said, “From domestic price stability to successful tariff negotiations with the US, he (Sk Bashir Unddin) has proved his mettle, to the dismay of naysayers.”

He called Sk Bashir Uddin as ”our extraordinary Commerce Advisor.”

Fouzul Kabir said, “I was tasked by the CA (Chief Adviser) to meet Sheikh Bashiruddin, among others, for the possible position of Commerce Advisor. I caught him on phone in Bhola, where he was on a business trip. We met at my office at the Ministry of Power Energy and Mineral Resources.

“Without any previous acquaintance, we chatted for an hour. He politely declined the snacks my office offered him! What I liked about him is his patriotism, no-nonsense stubbornness, and clarity in organizing a mass of facts for analysis. I conveyed my impressions about him to the CA. Thankfully, for our nation, the CA offered and he accepted the position,” he added.

“May Allah give him Hayate Taiyeba to serve the nation, be it in the public or private sector,” Fouzul Kabir concluded.

On 2 April, US President Donald Trump imposed reciprocal tariffs on countries from which the US imports goods. Fifty seven countries were slapped with increased tariffs at varying rates with Bangladesh facing an additional tariff of 37 per cent.

Muhammad Fouzul Kabir Khan

After a three-month suspension of this decision, President Trump informed the Chief Adviser of the interim government in a letter on 8 July that the reciprocal tariff for Bangladesh would be 35 per cent, effective from 1 August.

To reduce the reciprocal tariff imposed by the US administration, Commerce Advisor Sk Bashir Uddin led final negotiations in Washington with officials from the Office of the United States Trade Representative (USTR).

Finally, President Donald Trump issued an executive order on Thursday (US local time), imposing a 20 per cent reciprocal tariff on goods imported from Bangladesh. In the same order, he imposed reciprocal tariffs on several dozen other countries as well.​

 

[Saif]

Tariff cut by US strengthens Bangladesh’s global competitiveness: Bashir

Commerce Adviser Sk Bashir Uddin has said Bangladesh’s adjustment of its reciprocal tariff rate to 20 per cent on products exported to the United States (US) has strengthened its competitiveness in global trade. “We will be in a competitive position as the US has reduced tariffs on Bangladesh...

en.prothomalo.com

Tariff cut by US strengthens Bangladesh’s global competitiveness: Bashir
BSS Dhaka
Published: 01 Aug 2025, 16: 28

Commerce Adviser Sk Bashir Uddin BSS

Commerce Adviser Sk Bashir Uddin has said Bangladesh’s adjustment of its reciprocal tariff rate to 20 per cent on products exported to the United States (US) has strengthened its competitiveness in global trade.

“We will be in a competitive position as the US has reduced tariffs on Bangladesh to 20 per cent. So, there is no possibility that our exports to the US will be hampered. However, we expected it to be below 20 per cent,” he said.

The adviser said this in his immediate response securing a landmark trade deal with the United States.

Chief Adviser’s Press Secretary Shafiqul Alam pointed out this reaction in a post on his verified Facebook ID.

The US has reduced its tariff rate on goods from Bangladesh to 20 per cent, a significant reduction from the previous 35 per cent, after a final round of intense negotiations in Washington.

The announcement was made by the White House on Thursday (local time) after the final round of the talks in Washington DC between Bangladeshi officials and the Office of the United States Trade Representative (USTR), the main body responsible for overseeing US trade policy.​

 

[Saif]

US reciprocal tariff reduction encouraging, yet no room for complacency

The revised US reciprocal tariff on Bangladesh is now comparatively consistent with the competing countries, and that indicates reducing risk of trade diversion.

en.prothomalo.com

US reciprocal tariff reduction encouraging, yet no room for complacency
Selim Raihan
Published: 01 Aug 2025, 21: 56

Selim Raihan File photo

The reduction of the reciprocal tariffs, imposed by the US administration on the exports of Bangladeshi products to the country, from 35 per cent to 20 per cent is a positive and commendable step for the export sector of Bangladesh.

The revised tariff rate has come as the major restructure of US’ reciprocal tariff structures, and that seems to be applicable to many trade partners of the country. Sri Lanka, for example, has their tariff rate reduced from 30 per cent to 20 per cent, Pakistan from 29 per cent to 19 per cent, while Bangladesh’s competitors Vietnam and India currently have 20 and 25 per cent respectively.

In this context, the revised reciprocal tariff rate on Bangladeshi products in the US markets is now comparatively consistent with the competing countries, and that indicates reducing risk of trade diversion. It possibly lowers the risk of a major shock on the export of the readymade garment sector.

Since the modifying reciprocal tariff rate in China has not yet been finalised, an important uncertainty remains in the global trade perspective. What rate the US will set for China, and that will play the prime role in the global trade flow in future because of China’s important position in the global production system, as well as the country’s various overlapping similarities with various export sectors of Bangladesh.

If China sees an imposition of a higher tariff rate, demand may shift in favour of the South and Southeast Asian exporting countries including Bangladesh. On the other hand, if China gets favoured relatively, competition may intensify. So, the final decision on China will become important for the reconfiguration of the global trade flows and dynamics.

The reduction of the reciprocal tariff to 20 per cent has brought short-term relief. However, it also raises the question of what Bangladesh has offered the US in return. Some commitments, such as agreements to import wheat, cotton, and aircraft, have already been revealed.

However, it is reasonable to assume that more sensitive commitments may have been made under non-disclosure agreements, which are unlikely to be disclosed to the public in the near future. This situation clearly highlights the need for greater transparency, oversight, and long-term strategic planning in Bangladesh’s trade diplomacy.

This experience serves as an important lesson for Bangladesh. It underscores the need to build more stability and resilience in the country’s foreign trade structure. Three strategic priorities emerge clearly from this experience. First, Bangladesh must intensify efforts to diversify its export products and enter new markets. A narrow export structure, based on a limited range of products and reliant on a few destinations—especially the US—exposes Bangladesh’s economy to unnecessary risks.

Second, effective reforms in trade, taxation, and investment policies are needed to enhance competitiveness and attract long-term foreign investment. Improving the regulatory and business-friendly environment will help position Bangladesh as a more stable and attractive trade partner.

Third, Bangladesh should now explore targeted free trade agreements (FTA) with emerging economies in Asia, Africa, and Latin America. Such agreements could provide protection against future protectionist pressures and help establish alternative export pathways.

Therefore, while the reduction in the US reciprocal tariff rate is encouraging, it does not raise any option for self-complacency. Rather, it presents both an opportunity and a warning. Bangladesh must act decisively now to establish a diversified, competitive, and resilient trade strategy.

* Selim Raihan is executive director of South Asian Network on Economic Modeling (SANEM)​

 

[Saif]

Tariff cut brings relief as offers worry: economists

The United States has decided to reduce the reciprocal tariff on imported goods from Bangladesh to 20 per cent from the previously announced 35 per cent following a series of negotiations over the past month.

www.newagebd.net

Tariff cut brings relief as offers worry: economists
US reduces reciprocal tariff to 20 per cent
Saddam Hossain 01 August, 2025, 10:24

Bangladesh and US delegates hold third round of tariff talks in Washington. | CA press wing

The United States has decided to reduce the reciprocal tariff on imported goods from Bangladesh to 20 per cent from the previously announced 35 per cent following a series of negotiations over the past month.

However, economists said, despite bringing short-term relief, the decision raised questions about what Bangladesh might have offered to the US in return.

Due to the non-disclosure agreement, what was offered remains unknown except the plan to purchase Boeing aircraft and wheat.

According to a statement announced by the White House on Friday, US President Donald J Trump unveiled new tariff rates for 70 countries, including Bangladesh.

After the final round of the tariff talks between a Bangladesh delegation and US officials, the North American country declared the new tariff rate.

Regarding the reduction in reciprocal tariff rate, chief adviser Muhammad Yunus congratulated the Bangladesh tariff negotiators on securing a ‘landmark’ trade deal with the US, according to statement issued by the CA press wing.

The statement also said that by reducing the tariff to 20 per cent, the negotiators demonstrated remarkable strategic skill and unwavering commitment to safeguarding and advancing Bangladesh’s economic interests.

‘The agreement they negotiated preserves our comparative advantage, enhances our access to the world’s largest consumer market and safeguards our core national interests,’ the statement added.

The new tariffs came into effect on August 1, meaning Bangladeshi exporters would now pay an average of 15 per cent regular tariff along with an additional 20 per cent reciprocal tariff.

Earlier, on July 8, through a letter to the chief adviser, Washington imposed a 35 per cent reciprocal tariff, meaning the newly declared rate has been reduced by 15 percentage points.

Among the close competitors of Bangladeshi goods in global trade, the White House imposed tariff rates on Indian goods at 25 per cent, Pakistani goods at 19 per cent, Vietnamese goods at 20 per cent, Cambodian at 19 per cent, and Indonesian goods at 19 per cent.

Chinese and Mexican goods were not on the list.

The tariffs on Bangladesh neighbours Afghanistan are 15 per cent, Sri Lanka 20 per cent, and Myanmar 40 per cent, according to the Annex 1 list of the White House.

On the tariff negotiations, power and energy ministry adviser Muhammad Fouzul Kabir Khan praised commerce adviser Sk Bashir Uddin in a social media post.

He said that from domestic price stability to successful tariff negotiations with the US he had proved his mettle to the dismay of naysayers.

On April 2, US President Donald Trump announced steep tariffs on several countries, citing trade deficit concerns.

At that time, Bangladesh was subject to a 37 per cent tariff.

On April 9, Washington put on hold the tariffs for three months, giving countries an opportunity to negotiate, which ended on July 9.

Trump sent letters to country heads on July 8 setting new tariff rates and gave until 31 July to reach trade agreements with the US.

During this time, Bangladesh conducted a series of negotiations and agreed to purchase Boeing aircraft and wheat to cut the trade deficit with the US.

Regarding the tariff reduction, Professor Mustafizur Rahman, a distinguished fellow of the Centre for Policy Dialogue, said that the reduction in tariff rates brought some relief and diminished uncertainty.

‘However, concern persisted regarding what was offered against the tariff reductions. The matters must be evaluated through the clauses of the Non-Disclosure Agreement,’ he added.

Regarding the tariff reduction, Bangladesh also agreed to import more from the US along with intellectual property law implementation, custom waiver for US products, trade union rights, and others.

‘The tariff reduction must be evaluated through the gain and the offers,’ he added.

He also said that the tariff reduction might also create some challenges over the cost of the offering from Bangladesh, especially on buying LNG, aircraft, and other goods.

Moreover, it might reshape the import scenario from Bangladesh’s global trading partners, like Russia and China.

‘It also accelerated Bangladesh to do more works on intellectual property rights, trade union, and institutional reform,’ he added.

He further said that the reduction must bring relief for the country’s exporters as the rates declared were almost similar to the major competitors.

In 2024, Bangladesh exported to the US goods worth about $8.4 billion, of which $7.34 billion accounted for readymade garments. In the year, the country imported US goods worth $2.2 billion.

Against this backdrop, the US is pressing Bangladesh to lower the trade deficit to get a ‘favourable’ tariff rate.

With a view to reducing the trade deficit, Bangladesh on July 27 planned to purchase 25 Boeing aircraft.

Earlier, on July 20, Bangladesh signed a memorandum of understanding with the US to import seven lakh tonnes of wheat annually for the next five years to reduce the trade deficit with the US.

On July 23, the interim government decided to procure 2.20 lakh tonnes of wheat from the US at $302.75 a tonne.

Mohammad Abdur Razzaque, chair of Research and Policy Integration for Development, said that the 20 per cent US tariff on Bangladeshi exports was a relief in terms of maintaining parity with competitors.

However, he warned, the overall trade deal must be evaluated in light of the offers made by Bangladesh, many of which remain undisclosed.

‘Understanding the full scope of our obligations is essential to evaluate whether this outcome truly serves our long-term interests,’ he added.

Selim Raihan, executive director of the South Asian Network on Economic Modeling, said that the reduction in the US reciprocal tariff rate for Bangladesh was a welcome development for the country’s export sector.

However, it also raised questions about what Bangladesh’s offers to the US were.

‘Some of these commitments have been made public but it was reasonable to assume that more sensitive obligations may have been agreed upon under the NDA,’ he added.

He also said that the country needed to build greater resilience, including diversifying the export basket, domestic reforms in trade, taxation, and investment policies, and investment in the regulatory and business environment.

Economists also said that while the downward adjustment in the reciprocal tariff rate was encouraging, it should not lead to complacency.

Rather, it presents an opportunity, and a clear warning, for Bangladesh to take proactive steps toward building a more diversified, competitive, and resilient trade strategy.​

 

[Saif]

Partial tariff relief is a hard-won victory

Dhaka has proven it can meet this challenge, but the demands will not cease.

www.thedailystar.net

Partial tariff relief is a hard-won victory
A sober understanding of the new reality is necessary moving forward

VISUAL: STAR

In securing a 20 percent tariff rate from Washington, Dhaka has navigated a perilous new era of US trade diplomacy. The immediate reaction is justifiably one of relief. A potential 35 percent tariff, which would have been catastrophic for the country's primary export engine, has been averted. This is a hard-won victory for Bangladesh.

Yet, this relief should be tempered with a sober understanding of the new reality. While National Security Adviser Khalilur Rahman rightly praised the outcome as "good news," the more measured comments from Commerce Adviser Sk Bashir Uddin are equally telling. His admission that Bangladesh "expected a rate below 20 percent" reveals the fine print of modern transactional diplomacy: a win is not about achieving the ideal, but about securing a competitive position in a world of hard bargains. The new 20 percent benchmark, applied under the reciprocal trade framework, will stack atop the country's existing average tariff of 16 percent, pushing the total levy to 36 percent. While steep, the rate remains workable, precisely because it is not unique to Bangladesh. The same formula applies to all nations, ensuring the country stays competitive with key rivals.

Indeed, the outcome keeps Bangladesh in lockstep with Vietnam, Sri Lanka, and Indonesia, and only marginally behind Pakistan's 19 percent. The contrast comes from the fate of India. Hit with a punitive 25 percent tariff, New Delhi's experience demonstrates that in President Donald Trump's Washington, strategic partnership alone is no longer a shield. Access to the world's largest consumer market is now explicitly tied to a country's willingness to align with American priorities.

The price of this access is clear. Bangladesh's negotiators wisely focused their commitments on purchasing US agricultural products, a move that serves food security goals and fosters essential goodwill. That was an astute concession. It illustrates that successful negotiation is no longer confined to tariff percentages but requires a holistic approach, linking trade to everything from food policy to strategic cooperation.

Therefore, this episode must serve as more than a momentary success; it must be a blueprint for the future. The era of predictable, rules-based trade relations is giving way to a more fluid and demanding environment. The White House has declared that each country's tariff rate reflects the "depth of its commitment" to US interests. Dhaka has proven it can meet this challenge, but the demands will not cease. The government should be applauded for securing this initial victory, as a failure to do so would have disrupted exports to the country's single biggest market. But the key takeaway is that such negotiations are the new normal. Bangladesh must now institutionalise this capacity for agile, interest-based statecraft. The hard work of navigating this complex new world order, where every trade benefit comes with a cost, has only just begun.​