[🇧🇩] The U.S.A.---A Strategic Partner of Bangladesh

[Saif]

Economists urge FTA talks with US to safeguard $8.0b exports

Bangladesh needs to pursue a strong, evidence-based negotiation and proactively initiate a Free Trade Agreement (FTA) with the US in response to President Donald Trump's declaration of higher tariffs, to safeguard its $8 billion export market in the country. Additionally, comprehensive polic

thefinancialexpress.com.bd

Economists urge FTA talks with US to safeguard $8.0b exports
FE REPORT
Published :
Apr 18, 2025 00:36
Updated :
Apr 18, 2025 00:36

Bangladesh needs to pursue a strong, evidence-based negotiation and proactively initiate a Free Trade Agreement (FTA) with the US in response to President Donald Trump's declaration of higher tariffs, to safeguard its $8 billion export market in the country.

Additionally, comprehensive policy measures are needed to boost export earnings from the US and other countries by diversifying markets and enhancing competitiveness rather than relying on increased imports from the US to address trade imbalances.

These remarks came from experts, economists and representatives of the private sector on Thursday from a dialogue titled "Trump Reciprocal Tariffs and Bangladesh: Implications and Response" organised by the Centre for Policy Dialogue (CPD) at a hotel in the capital.

Professor Rehman Sobhan, Chairman of CPD, delivered special commentary, while Professor Mustafizur Rahman, a distinguished fellow at CPD, presented a keynote paper at the event chaired by Dr Fahmida Khatun, Executive Director of the host organisation.

Md Fazlul Hoque, former President of BKMEA, Dr Mostafa Abid Khan, former Member of the Bangladesh Tariff and Trade Commission, Md Mahbub ur Rahman, CEO of HSBC Bangladesh, Shams Mahmud, President of the Bangladesh Thai Chamber of Commerce and Industry, and Taslima Akter Lima, President of Bangladesh Garments Sramik Sanghati spoke, among others.

Mr Rehman Sobhan said that China is the main target of President Donald Trump as it is the world's largest economy in terms of purchasing power parity (PPP) and holds the highest competitiveness both domestically and globally.

The trade war would create opportunities for boosting export from Bangladesh to China, he said, adding that China-despite being the largest garment exporter to the US-exports around $17 billion annually, significantly more than Bangladesh's $7.0 billion.

Facing a 145 per cent tariff, export from China to the US could drop to nearly zero, while countries like Bangladesh, Vietnam and Cambodia may fill the $17 billion gap, he said. The prominent economist also recommended not to provide any additional facilities for the US in trade and said any concessions for any country must be extended to all countries under the MFN principle.

He said Bangladesh should carefully craft its policy responses, prioritizing export promotion to alternative markets-especially the EU, where it enjoys duty-free access-while enhancing competitiveness to tap into markets like Australia, Canada, and Japan.Professor Mustafizur Rahman stressed the importance of enhancing regional trade partnerships, strengthening South-South cooperation, and strategically positioning Bangladesh amid the potential global trade realignment triggered by the new tariff regime.

Laying stress on evidence-based negotiations, he said Bangladesh collects $180 million annually in duties on US imports at 6.2 per cent average, but it drops to $64 million or 2.2 per cent after rebates. On the other hand, Bangladesh pays $1.08 billion in duties on exports to the US at 15.2 per cent of tariff, added Mustafizur Rahman.

He said Bangladesh would be in a favourable position in negotiations with the US on tariff rates but would likely face major challenges regarding non-tariff barriers, intellectual property rights, labour standards, and related other issues.

He anticipated that the new US tariffs would significantly harm global trade and the US itself, noting that while the full impact remains uncertain, US consumers, buyers, and exporters will be affected.

He said that the effect of the tariff on Bangladesh would depend on the extent of tariff, its duration, and the range of products covered, adding that much would also hinge on how a country responds within the 90-day window after receiving a concession.

He emphasised the need for bilateral negotiation and said the Trade and Investment Cooperation Forum Agreement (Ticfa) would be the key platform for discussion, which needs to be activated through a scheduled meeting.

In that forum, the government must ask which items the US is interested in and assess the potential revenue loss if those items are offered to others, he said.

He undermined the letter issued by Chief Adviser Dr Muhammad Yunus offering free trade access of several items like gas turbines, semiconductors and medical equipment. He said that offering zero tariffs to the US would require similar concessions for other countries under MFN rules of the WTO.

Mustafizur Rahman underscored the importance of signing an FTA with the US to offer exclusive concessions and urged the government to prioritize certification, standardization, and the intellectual property rights (IPR) regime-acknowledging these would be challenging.

However, he noted that the US has FTAs with countries like Costa Rica, the Dominican Republic, Bahrain, and Jordan-none of which are highly developed-suggesting that Bangladesh could also secure one through effective negotiation.

Citing the USTR report, he pointed to US concerns over high tariffs, weak IPR protections, labour standards, and bureaucratic hurdles in Bangladesh, stressing that these issues must be resolved to attract both US and global investment.

It is extremely difficult to respond effectively to the US demand for a balanced trade, as importing goods worth $7 billion within just three months is quite impossible, said Mostafa Abid Khan.

He added that even if Bangladesh reduces tariffs on a particular product, it is not guaranteed that exports from the US to Bangladesh will increase.

Shams Mahmud expressed concern that the massive tariff has disrupted the local supply chain, with some orders held back and clients seeking discounts. He added that local businesses are facing cash flow issues and feared increased harassment by the NBR as they try to meet revenue targets.

Md Fazlul Haque said that the actions of the Trump administration are like an unknown disease-no economist has been able to identify its nature.

"As a result, we are uncertain about what may happen to us. We are not sure which measure will work to resolve this issue," he said.

Babul Akter, General Secretary of the Bangladesh Garment and Industrial Workers Federation, urged the government to provide targeted support to US-exporting factories and avoid using the situation to shut down struggling factories, which could lead to widespread unemployment.​

 

[Saif]

US wants precise action plan from Bangladesh

The United States has sought to know what steps Bangladesh would take to reduce the trade deficiency between the two countries and how they will execute them.

en.prothomalo.com

US wants precise action plan from Bangladesh
Diplomatic Correspondent Dhaka
Updated: 24 Apr 2025, 20: 13

Courtesy of Bangladesh Embassy in the US

The United States has sought to know what steps Bangladesh would take to reduce the trade deficiency between the two countries and how they will execute them.

Washington wants a precise action plan in this regard from Bangladesh where mention of necessary steps for the sake of changing the labour condition, labour law and intellectual property law is essential.

These issues came up in the talk between chief adviser’s special envoy on international affairs Lutfey Siddiqui and US assistant trade representative for South and Central Asia Brendon Lynch on Wednesday morning (Washington local time).

Lutfey Siddiqui represented Bangladesh and Brendon Lynch represented the US in the bilateral talks.

Chief adviser’s special envoy on international affairs Lutfey Siddiqui and US assistant trade representative for South and Central Asia Brendon Lynch in Washington on 23 April 2025.

Press minister for Bangladesh Embassy in the US, Golam Mortoza told Prothom Alo from Washington that the US has commended Bangladesh during the talks.

After US President Donald Trump decided to impose counter tariffs on different countries, Chief Adviser Professor Muhammad Yunus had sent a letter to the US president on 7 April.

On the same day commerce adviser Sk Bashir Uddin had also sent a letter to United States Trade Representative (USTR) Jamieson Greer. The letter was sent to the US with the request of suspending the counter tariffs for three months. Later, US President Donald Trump suspended the counter tariff for 90 days.

Within a few days of sending the letter, Bangladesh has reflected upon its own initiative to solve the issue through discussion by sending a representative to Washington.

Diplomatic sources report that Bangladesh in the discussion spoke of importing more Soybean oil and LNG alongside cotton to reduce the trade deficiency. The issue of importing goods from the US both on government and private levels came up in the discussions.

At the time it was stated on behalf of the US that nobody expects that the trade deficiency would be gone completely if steps are taken at the moment. However it’s necessary to ensure that Bangladesh is taking visible steps to resolve the matter. The US wants to see precise action plan on what steps Bangladesh would take for that and how they would be implemented.

A source from Washington stated that the US has advised on including issues of bringing necessary changes to labour rights protection, improving their work environment, labour conditions, labour law and intellectual property law alongside reducing the tariffs on goods imported from the US and have planning about the imported goods in the action plan.​

 

[Saif]

Bangladesh moves toward signing FTA with US

Bangladesh is taking steps toward signing a zero-tariff deal or a Free Trade Agreement (FTA) with the USA in a bid to enhance bilateral trade and investment, according to sources. The Ministry of Commerce (MoC) on Monday formed a high-powered committee to prepare a draft deal and submit it to the

thefinancialexpress.com.bd

Bangladesh moves toward signing FTA with US
Body formed to draft a proposed deal

FE REPORT
Published :
May 15, 2025 09:20
Updated :
May 15, 2025 09:20

Bangladesh is taking steps toward signing a zero-tariff deal or a Free Trade Agreement (FTA) with the USA in a bid to enhance bilateral trade and investment, according to sources.

The Ministry of Commerce (MoC) on Monday formed a high-powered committee to prepare a draft deal and submit it to the commerce secretary within the next 15 days, they said.

According to the terms of reference (ToR), the eight-member body will identify applicable sectors for inclusion in the proposed agreement by giving highest priority to protect the country's interests, trade growth, investment, etc.

The committee would review the recent free-trade agreements between the US and other countries, if necessary. Besides, necessary additions and subtractions can be made to the draft in the light of the ongoing negotiation experience of Bangladesh.

The commerce ministry is currently working to sign FTAs with more than two dozen countries. It has so far signed the lone PTA (Preferential Trade Agreement) with Bhutan, which came into effect on July 1, 2022.

"Feasibility study comes first. Then we can decide on a deal. In fact, we will sign a FTA or PTA with a country only when it is financially and economically viable for our country," said a commerce ministry official.

A bilateral free-trade or preferential-trade pact is a matter of negotiation between two countries. The objectives of FTAs are to achieve zero tariffs between the two signatory countries and reduce trade barriers. No country will agree to a deal if it goes against its interests.

A senior commerce ministry official admitted that progress on negotiating bilateral FTAs with some countries is on the slow lane.

The government is working sincerely on FTA and PTA issues but progress is slow due to delays by potential partner countries, according to the official.

Signing FTAs with some countries may not be feasible for Bangladesh as it could cause heavy revenue losses, according to trade officials.

The process of signing FTAs with some countries is currently at the negotiating stage.

Discussions are underway to sign FTAs and CEPAs with Indonesia, the Eurasian Economic Union (EAEU), Thailand, Malaysia, China, Turkey, APTA, ASEAN, Australia, the GCC, Japan, the Philippines, South Korea, MERCOSUR (The Southern Common Market) and Singapore.​

 

[Saif]

Bangladesh reducing import duties on over 100 goods to appease Trump

The interim government is set to reduce import duties on at least 100 types of goods in the upcoming budget, aiming to create a favourable ground for negotiations following the additional tariffs imposed by the United States. Chief Advisor Muhammad Yunus gave provisional approval to this move duri

thefinancialexpress.com.bd

Bangladesh reducing import duties on over 100 goods to appease Trump

Published :
May 19, 2025 23:23
Updated :
May 19, 2025 23:23

The interim government is set to reduce import duties on at least 100 types of goods in the upcoming budget, aiming to create a favourable ground for negotiations following the additional tariffs imposed by the United States.

Chief Advisor Muhammad Yunus gave provisional approval to this move during a meeting with the National Board of Revenue (NBR) on Monday.

The financial advisor, NBR chairman and senior officials from the Income Tax, value-added tax (VAT), and Customs policy branches as well as the first and second secretaries were in attendance.

The meeting began at 4:40pm and concluded around 7:10pm.

An official present at the meeting told bdnews24.com, “We proposed zero duties on 100 tariff lines, keeping in mind imports from the United States.

“He (Muhammad Yunus) then asked how we could apply this specifically to the US. We said it was not possible and explained to him that the tariff cuts would primarily benefit the US.”

A tariff line, identified by an HS (Harmonised System) code, refers to a specific customs duty rate assigned to one or more similar products.

Customs duties for imports are determined based on these codes.

The goods include nearly 15–16 items such as oil, gas, arms, fighter aircraft parts and missiles—products that are typically purchased only by the government or in order to lower the trade deficit.

Officials explained that since such government purchases come under special agreements with duty exemptions, there’s no risk of revenue loss in these cases.

In addition, the chief advisor said taxes must not be imposed in areas where revenue potential is low and where it could raise pressure on the general public or create political unrest.

The directive led to proposals in the budget to increase the individual tax-free income threshold. Though the corporate tax rate will remain unchanged, the head of the caretaker government also approved the proposal of some flexibility in compliance requirements.

A notable policy shift includes removing tax exemptions in fisheries, dairy, and poultry sectors—areas where political and administrative elites have often invested to gain tax advantages.

The facility allowing investment of undisclosed income, or black money, in the purchase of houses, flats, and apartments will continue into the next fiscal year.

Although the corporate tax rate may increase, turnover tax is set to double.

A minimum tax of Tk 5,000 will be imposed on all individual taxpayers who fall within the tax net, while the highest personal tax rate will be raised to 30 percent—a move that has also received approval on-principle.

The finance advisor is scheduled to propose the budget for the upcoming fiscal year in the form of an ordinance through state televisions on Jun 2. VAT and customs provisions will come into effect immediately.

Unlike regular years, the budget won’t be discussed in the parliament due to its absence this time. Instead, public discussion, talk shows, and reactions will help shape any necessary adjustments, which will later be formalised by passing the ordinance as the Finance Act.​

 

[Saif]

Trump’s remittance tax plan poses threat to Bangladesh

The US House Budget Committee voted late on Sunday to move forward with President Donald Trump's "One Big Beautiful Bill Act", a proposal that could make sending money back home more expensive for three lakh Bangladeshis currently living in the United States.

www.thedailystar.net

Trump’s remittance tax plan poses threat to Bangladesh

The US House Budget Committee voted late on Sunday to move forward with President Donald Trump's "One Big Beautiful Bill Act", a proposal that could make sending money back home more expensive for three lakh Bangladeshis currently living in the United States.

The bill proposes a 5 percent tax on all international money transfers made by non-US citizens, including holders of non-immigrant visas such as the H-1B and green card holders.

During the January-March quarter of this year, Bangladesh received the highest amount of remittances from the US -- which was more than 18 percent of the total inflow.

"This is a matter of concern for Bangladesh. It would deal a massive blow to our increasing remittance inflow," said Birupaksha Paul, a professor of economics at the State University of New York in Cortland.

In the first nine months of the 2024–25 fiscal year, Bangladesh received $3.94 billion in remittances from the US, according to the Bangladesh Bank.

If enacted, the US law would deduct 5 percent from the transferred amount at the point of transfer. No minimum exemption has been proposed, meaning even small transfers would be taxed.

The measure could financially hurt around 300,000 Bangladeshis living in the US, according to 2023 estimates from the US Census Bureau.

Describing the proposed levy as "unfair", Paul said, "As people send remittance from their taxed income, it would be unfair to levy tax on remittance again."

He added that the bill might still pass due to the current political landscape in Washington.

"Most of the Congress members are fourth or fifth-generation migrants who no longer send remittances. And there is not much of a voice among economists here."

Paul said that the move comes at a time when the US is grappling with rising public debt and is looking for new revenue sources.

If the bill becomes law, India and several Latin American nations, which also receive large sums in remittances from the US, would feel a sharp impact.

For Bangladesh, Paul recommended allowing the exchange rate to be fully determined fully by the market, rather than offering remittance incentives.

"Better rates may attract remitters more effectively than cash incentives," he said.

Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank, echoed similar concerns of Paul.

"If Bangladesh receives $1 billion in remittances from the US, a 5 percent tax would mean a $50 million loss," he said.

"As the US is our top remittance source, the impact would be significantly high," he added. "It would be a scary situation for the country's foreign exchange reserves."

Mohammad Abdur Razzaque, an economist and chairman of the Dhaka-based think tank Research and Policy Integration for Development (RAPID), said the proposed tax could push many back towards using illegal money transfer channels such as hundi, where rates are already more attractive.

"It will particularly affect small remitters," he said. "This is a policy challenge by a foreign country, but it will have serious domestic consequences."

"It is a matter of concern for us as the US is our largest remittance-contributing country."

Razzaque called for a united global response, pointing out that such a tax would undermine international efforts to reduce the cost of sending remittances.

"This is not just about Bangladesh. All affected countries should raise their voices collectively," he said.​

 

[Saif]

American imports getting cheaper under 500 products' duty cuts

Import taxes on nearly 500 products, including 100 from America, are up for cuts in the upcoming budget to smooth the path of Bangladesh's LDC graduation next year and offset Trump tariffs. Of the items, some 500 goods will see cuts ranging from 20 to 40 per cent in supplementary duty and regulato

thefinancialexpress.com.bd

Recast of tariff structures in budget

American imports getting cheaper under 500 products' duty cuts

WTO tariff compliance after Bangladesh's LDC graduation, aligning with Trump tariffs work

Doulot Akter Mala
Published :
May 30, 2025 00:38
Updated :
May 30, 2025 00:38

Import taxes on nearly 500 products, including 100 from America, are up for cuts in the upcoming budget to smooth the path of Bangladesh's LDC graduation next year and offset Trump tariffs.

Of the items, some 500 goods will see cuts ranging from 20 to 40 per cent in supplementary duty and regulatory duty (RD) while customs duty (CD) would be reduced on 135 items, official sources said.

The items include fish, animal-based items, less-commonly-traded goods, and certain intermediate raw materials.

"We are going to waive CD on 100 items imported from USA to align the tariff rate with reciprocity as desired by the Trump administration," says one revenue official.

To phase out protective tariffs -- meant for providing protection to fledging domestic industries -- import duty would be increased up to threefold on raw materials of 14 manufacturing sectors.

Those coming under the tax hike include beverages, energy-saving bulbs, water purifiers, fans, cigarette paper, and food processing.

Officials say the 'minimum value' system would be phased out for what is dubbed trade parity as it doesn't exist in any countries across the world.

However, as per lending conditions set by the International Monetary Fund (IMF) on mobilising more revenues, the government would increase the fixed value on 24 items for next fiscal year.

To comply with World Trade Organization (WTO) regulations also, tariff values and minimum values are set to be removed for around 40 types of products.

Import duties on raw materials for 59 types of medicines, including those used for cancer treatments, may be withdrawn entirely.

Minimum value refers to a fixed government-declared price below which no product can be assessed for duty, regardless of the declared import price.

This system helps prevent revenue evasion through under-invoicing. However, according to WTO standards, both tariff values and minimum values are inconsistent with global practices.

Bangladesh currently imports around 7,500 genres of products (tariff lines based on HS codes), most of which face very high import tariffs. Over 100 of these imports are subject to tariff-and minimum-value assessments, which have been widely criticized.

Officials have said upon Bangladesh graduating from LDC status, the country will have to move away from such tariff structures. Currently, local industries benefit significantly from tariff walls (high protection), which are not aligned with global standards.

According to the National Board of Revenue (NBR), the average import tariff in Bangladesh is 28 per cent -- more than double the average for LDCs.

Beverages, energy-saving bulbs, water-purifying machines, electric fans, cigarette paper, food processing may come under higher import duty.

Malt extract, food preparations of flour, grouts, meal, starch, or malt extract for infant or young children in bulk, imported by the food industry, nutritional supplements for the food industry for pregnant and breastfeeding women, soya-protein-based food preparations, raw materials for water-purifying machine, woven fabrics of man-made fibers for satin ribbon manufacturing, too, may see a hike in duty taxes.

For beverage concentrates -- CD might be increased from 10 per cent to 15 per cent while import for cigarette paper for tobacco industry may see 100-percent SD in a hike from the existing 60 per cent. The customs duty on non-alloyed aluminum rectangular plates, sheets, and strips for electric-fan manufacturing might be increased to 5.0 per cent from 1.0 per cent.

To promote the local leather industry, the government is likely to reduce customs duty on several chemicals under seven HS codes, including chromium, wattle extract, and tanning extracts of vegetable origin.

Sulphate-import customs duty will be down to 5.0 per cent from 10 per cent. However, VAT at 15 per cent will be applicable to this item.

Specific duty on import of refined sugar is likely to come down to Tk 4,000 from Tk 4,500, supplementary duty on microbus import will be halved from per cent.

The government is likely to facilitate local manufacturing of computers by adding some accessories to the list of pared-down import duties.

Customs duty on bus import is likely to be cut to half at 5.0 per cent from the current rate of 10.

To protect the local abrasive paper industry, the upcoming budget is likely to reduce customs duty on its two major raw materials- Phenolic resins and sandpaper coating materials -- to 5.0 per cent and 15 per cent from the current rates of 10 and 25, respectively.

Steel-industry raw material mould powder is currently facing 25-percent customs duty and a 3.0-percent regulatory duty. The upcoming budget is likely to reduce this to 15% and waive the regulatory duty.

To promote fruit export, the government is likely to reduce customs duty from 25 per cent to 5.0 per cent on fruit-bag imports.

Helicopter import is likely to face a hike in customs duty from 0% to 10%, and 15% VAT, 5% Advance Tax and 5% Advance Income Tax from the next fiscal year.​

 

[Saif]

Reciprocal Tariff: Decision to import wheat, aircraft from the US

Currently, Bangladesh exports goods to the United States at an average tariff of 15 per cent.

en.prothomalo.com

Reciprocal Tariff: Decision to import wheat, aircraft from the US
Fakhrul IslamDhaka
Updated: 27 Jun 2025, 12: 19

US President Donald Trump holds a signed executive order on tariffs on aluminum imports in the Oval Office of the White House in Washington on 10 February Reuters

The additional 37 per cent reciprocal tariff imposed on Bangladeshi exports by the administration of US President Donald Trump may be reduced.

Bilateral negotiations are currently underway, and a final decision could be reached following a meeting between Bangladesh and the United States scheduled for 29 June.

In the meantime, Bangladesh is proactively increasing its bilateral trade with the US. As part of efforts to encourage the US to lower the reciprocal tariff rate, the government is preparing to import 300,000 tonnes of wheat at a higher cost through a government-to-government (G2G) deal.

An initial decision to this effect was taken at a G2G-related committee meeting held at the Secretariat on Thursday, chaired by Food Secretary Masudul Hasan.

In addition, the Ministry of Civil Aviation and Tourism is taking steps to purchase aircraft from US-based Boeing. Bangladesh is also simplifying the process of importing cotton from the United States.

These developments have been confirmed by sources within the Ministry of Food, Ministry of Commerce, and Ministry of Civil Aviation and Tourism. The sources indicated that if the upcoming 29 June talks are successful, the reciprocal tariff rate may be revised downward.

Currently, Bangladesh exports goods to the United States at an average tariff of 15 per cent. However, on 3 April, the Trump administration unexpectedly announced an additional 37 per cent reciprocal tariff, raising the total tariff to 52 per cent.

This was set to take effect from 9 April. On that day, however, the US suspended the implementation of the new tariff on Bangladesh—along with other countries—for a period of three months. That suspension is due to expire on 9 July.

Asked about the decision to import wheat from the United States, a senior official from the Ministry of Food stated that Bangladesh typically imports wheat from Russia and Ukraine, where prices are relatively lower.

Despite this, the government has decided to proceed with US wheat imports at a rate that is USD 20 to USD 25 per tonne higher. The shipping cost from the United States is also higher. However, officials say that US wheat is of higher quality.

Bilateral Discussions Underway
It has been learned that some of the demands made by the United States are based on its own domestic laws and are not applicable under Bangladeshi law. As a result, letters have been exchanged between the two countries to address these differences. A meeting was held in the United States at 6:30 pm Bangladesh time yesterday, where Khalilur Rahman, security adviser to the chief advisor, participated. However, the outcome of the meeting was not immediately known as of last night.

Sources at the Ministry of Commerce said that Bangladesh is currently ahead of other countries engaged in bilateral talks with the United States regarding the reduction of the reciprocal tariff rate. Some countries, such as Indonesia, have stalled at certain stages of discussion. However, senior officials at the Ministry of Commerce remain hopeful that US President Donald Trump may decide to extend the suspension of the reciprocal tariff for another year.

According to data from the US Census Bureau, Bangladesh’s exports to the United States have increased by USD 2.5 billion over the past decade. Meanwhile, imports from the United States have grown by USD 1.25 billion. In 2024, Bangladesh exported goods worth USD 8.36 billion to the US, while importing goods worth USD 2.21 billion, resulting in a trade surplus of USD 6.15 billion in Bangladesh’s favour.

When asked about the overall situation, Selim Raihan, Executive Director of the South Asian Network on Economic Modeling (SANEM), told Prothom Alo, “Bangladesh has taken several initiatives, which are positive from the perspective of the United States. However, we will have to wait until that day to see what happens after 9 July.”

Other Measures

On 7 April, Chief Advisor Professor Muhammad Yunus sent a letter to US President Donald Trump, requesting a three-month postponement of the reciprocal tariff decision. The letter stated that Bangladesh imposes the lowest tariff on US products in the South Asian region. It also mentioned that zero tariffs would continue on US agricultural products and scrap materials. Additionally, Bangladesh is considering a 50 per cent tariff reduction on major US exports such as gas turbines, semiconductors, and medical equipment.

On the same day, Trade Advisor Sheikh Bashiruddin met with officials at the US Embassy in Dhaka in the morning and later sent a separate letter to US Trade Representative (USTR) Ambassador Jameson Greer. In the letter, he noted that Bangladesh currently imposes no tariffs on 190 products and is considering adding 100 more items to the duty-free list. Bangladesh, he emphasized, has always upheld a policy of constructive dialogue and cooperation and is willing to remove any barriers to US exports.

Even after President Trump suspended the reciprocal tariff for three months, several rounds of direct and online meetings and correspondence between the two countries continued. Bangladesh held a meeting with the USTR in Washington on 21 April, during which the US sought clarification on six issues. These were addressed in a follow-up letter sent on 4 June. A draft of the reciprocal tariff agreement was then prepared on 12 June, followed by an online meeting held on 17 June.

Regarding the matter, Commerce Secretary Mahbubur Rahman told Prothom Alo, “The draft is confidential and cannot be published anywhere. Therefore, we are handling the negotiations ourselves.”​