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

Saif · Apr 7, 2025

Yunus requests Trump to hold up new tariff regime for three months

Chief Adviser Professor Muhammad Yunus on Monday sent a letter to US President Donald Trump requesting him to postpone the application of a 37 per cent tariff on Bangladeshi products in the US market. Chief Adviser Prof Yunus has addressed a letter to US President Donald J Trump requesting him to

thefinancialexpress.com.bd

Yunus requests Trump to hold up new tariff regime for three months
BSS
Published :
Apr 07, 2025 17:48
Updated :
Apr 07, 2025 17:48

Chief Adviser Professor Muhammad Yunus on Monday sent a letter to US President Donald Trump requesting him to postpone the application of a 37 per cent tariff on Bangladeshi products in the US market.

Chief Adviser Prof Yunus has addressed a letter to US President Donald J Trump requesting him to postpone the application of US reciprocal tariff measures on Bangladesh for three months to allow the interim government to smoothly implement its initiative to substantially increase US exports to Bangladesh, said a statement issued by the Chief Adviser’s Press Wing.

"We are the first country to take such a pro-active initiative", he said in his letter, citing the visit of High Representative Dr Khalilur Rahman to Washington DC in February.

Ever since, the two sides have been working closely to identify specific actions.

Bangladesh is also the first country to enter into a multi-year agreement to import liquefied natural gas from the US.

The centrepiece of Bangladesh's actions is to significantly increase imports of US agricultural products such as cotton, wheat, corn and soybean, which will offer benefits to US farmers.

Bangladesh has the lowest tariff on most US exports in the South Asian region.

Chief Adviser Prof Yunus indicated further tariff cuts on US products are being fashioned, including top US export items such as gas turbines, semiconductors and medical equipment.

Bangladesh will build dedicated duty free bonded warehouses for cotton to improve US market.

"We are eliminating certain testing requirements, rationalising packaging, labelling and certification requirements and undertaking trade facilitation measures such as simplifying customs procedures and standards," the Chief Adviser added.

"Bangladesh will take all necessary actions to fully support your trade agenda", Prof Yunus assured President Trump.

A separate letter detailing the actions of Bangladesh will be sent by the Commerce Advisor to the US Trade Representative soon, the statement read.

Saif · Apr 7, 2025

From tariffs to triumph

The recent decision of the United States (US) government to impose a 37 per cent 'discounted reciprocal tariff' on Bangladeshi exports has reverberated with shock through the country's business and policy circles. As per a chart published by the White House, Bangladesh is reported to levy an effect

thefinancialexpress.com.bd

From tariffs to triumph
Recalibrating Bangladesh-U.S. trade for mutual benefit
Md Sahidul Islam
Published :
Apr 07, 2025 23:56
Updated :
Apr 07, 2025 23:56

The recent decision of the United States (US) government to impose a 37 per cent 'discounted reciprocal tariff' on Bangladeshi exports has reverberated with shock through the country's business and policy circles. As per a chart published by the White House, Bangladesh is reported to levy an effective 74 per cent tariff on American goods, ranking it among the highest US trading partners.

This development, part of Trump's "Liberation Day" trade policy, aims to counter what the administration describes as unfair trade practices and protectionist barriers against American exports. Under the new framework, the US has introduced a baseline 10 per cent tariff on all imports, with significantly higher rates for countries accused of currency manipulation or high trade barriers.

This poses a serious challenge for Bangladesh. The US is our single largest export destination, particularly for the RMG sector, which contributes more than 80 per cent of total exports. A 37 per cent tariff could significantly erode our competitive edge, especially as key competitors like India (26 per cent), Pakistan (29 per cent), and Vietnam (46 per cent) face varying but comparatively lower tariff rates.

To effectively tackle this challenge, Bangladesh must adopt a proactive, strategic approach. This involves leveraging both diplomacy and trade policy adjustments to mitigate risks and enhance economic ties with the US.

A key step in this strategy would be to revisit tariff structures on US imports to create room for negotiation. Currently, Bangladesh imposes a 5 per cent Advance Income Tax (AIT) on US raw cotton, a critical input for the textile industry. Reducing this tax to zero per cent -while simultaneously seeking duty-free access for garments manufactured using US cotton-could be a pragmatic move.

This approach, if successful, could lead to a win-win situation. US exporters, especially cotton producers, would gain a larger, more reliable market in Bangladesh. Bangladeshi apparel manufacturers, already grappling with high production costs, would regain a competitive edge in the US market, fostering a sense of hope and optimism.

Additionally, Bangladesh already offers zero duty on aircraft parts and 5 per cent on scrap metals, with low tariffs on LPG and energy imports. Extending a zero-duty framework to key US exports-such as cotton and high-tech equipment-could position Bangladesh as a priority partner under the US "reciprocal tariff" doctrine.

Trade policies are rarely set in stone, and diplomacy plays a crucial role in shaping tariff negotiations. To counteract the new tariff structure, Bangladesh must: (a) initiate immediate diplomatic engagements with US trade representatives to argue for a fairer framework; (b) strengthen bilateral trade cooperation by highlighting Bangladesh's contributions to the US supply chain; (c) leverage regional alliances-especially within South Asia-to advocate for more balanced US trade policies; and (d) explore alternative trade routes and diversify export markets to reduce over-reliance on the US market.

While the 37 per cent tariff poses a significant challenge, it also presents an opportunity to reshape Bangladesh-US trade relations. If approached strategically, this moment could lead to a more balanced, resilient, and sustainable trade framework, securing long-term economic stability for Bangladesh.

In times of adversity lie opportunities. Now is the time for decisive, creative, and courageous action.

Md. Sahidul Islam is Head of Business, Corporate Head Office, Shimanto Bank PLC.

Saif · Apr 7, 2025

Bangladesh offers zero tariffs on 100 more US goods to narrow trade gap

Commerce adviser sends a letter to US trade representative

www.thedailystar.net

Bangladesh offers zero tariffs on 100 more US goods to narrow trade gap
Commerce adviser sends a letter to US trade representative

Bangladesh is ready to offer zero import tariffs for another 100 US goods in addition to the existing 190, in order to minimise the trade gap and address Trump's reciprocal tariffs, according to a letter from Commerce Adviser Sk. Bashir Uddin sent to US Trade Representative Jamieson Greer today.

Bangladesh is one of the largest importers of US cotton, manufactures readymade garments, and faces higher tariffs on its exports to the United States, the adviser wrote in the letter.

"Our tariff schedule contains 190 product lines with zero tariffs, and another 100 product lines are being considered for inclusion in the zero-tariff schedule."

"Since the withdrawal of preferential access for Bangladeshi exports to the US, your esteemed government has been imposing a 15 percent tariff on all goods from Bangladesh, while we impose a weighted average tariff on US products of 6.10 percent—where raw cotton and steel scrap face tariff rates of 0 percent and 1 percent respectively," the adviser said.

Saif · Apr 8, 2025

Proper steps needed to address the US tariff crisis

Bold diplomacy, united efforts essential

www.thedailystar.net

Proper steps needed to address the US tariff crisis
Bold diplomacy, united efforts essential

VISUAL: STAR

We welcome the government's initiative to send two letters to the US administration—one to President Donald Trump and another to the US government's lead trade negotiation office—in response to its new "reciprocal" tariff regime imposed on all its trading partners. According to a report by this daily, the letters will outline policy measures to reduce bilateral trade imbalances that triggered the levying of a 37 percent tariff on imports from Bangladesh. This comes amid fears that the new policy, effective from April 9, may strike a blow to our export-based economy, particularly the garments sector, for which the US is the single largest market. As the world rushes to the negotiating table to deal with this latest setback, we must do the same to protect our industries and retain our competitiveness.

While talking to The Daily Star following a high-level meeting at the finance ministry, government officials and industry leaders appeared optimistic that if proper measures are taken, Bangladesh may not only weather this storm but also turn the challenge into an opportunity to diversify exports, streamline trade practices, and strengthen its position in the US market. This confidence comes partly from the fact that most regional trade rivals of Bangladesh face a heavier blow. In 2024, Bangladesh shipped $7.4 billion worth of garments to the US, making it the third-largest apparel supplier after China and Vietnam. Now, under the new US policy, China's total apparel tariff could reach 65.5 percent, while Vietnam's may rise to 57.5 percent. However, there remains doubt about whether the 37 percent tariff imposed on Bangladesh will replace existing duties or be added on top of them. If it is an additional tariff, the total duty on our garments could rise to 48.56 percent—up from the current average of 11.56 percent. We, therefore, must prepare for the worst-case scenario, although we will not know for sure until April 9.

Our response must be swift, strategic, and with the broader interests of the nation, including workers, in mind. One strategy that could prove effective is requesting a delay in the implementation of the new tariffs. Vietnam has already sought at least 45 days of relief from the US to allow room for negotiation and adjustment, even offering to reduce all tariffs on US imports to zero. Bangladesh should not shy away from making similar moves to adjust trade balances. While the commerce adviser has said that a deferral is unlikely at this stage, persistence may lead to rewards. Even a limited extension could give our exporters time to reorganise and adjust pricing strategies.

In this regard, we may also consider engaging experienced US-based lobbyists to support our case. Experts have also stressed the importance of expanding US imports of goods and services, broadening our export base beyond RMG, expanding exports to other markets beyond the US, and removing all tariff and non-tariff barriers to encourage greater bilateral trade.

Saif · Apr 8, 2025

Bangladesh offers zero tariffs on 100 more US goods to narrow trade gap

Commerce adviser sends a letter to US trade representative

www.thedailystar.net

Bangladesh offers zero tariffs on 100 more US goods to narrow trade gap
Commerce adviser sends a letter to US trade representative

Bangladesh is ready to offer zero import tariffs for another 100 US goods in addition to the existing 190, in order to minimise the trade gap and address Trump's reciprocal tariffs, according to a letter from Commerce Adviser Sk. Bashir Uddin sent to US Trade Representative Jamieson Greer today.

Bangladesh is one of the largest importers of US cotton, manufactures readymade garments, and faces higher tariffs on its exports to the United States, the adviser wrote in the letter.

"Our tariff schedule contains 190 product lines with zero tariffs, and another 100 product lines are being considered for inclusion in the zero-tariff schedule."

"Since the withdrawal of preferential access for Bangladeshi exports to the US, your esteemed government has been imposing a 15 percent tariff on all goods from Bangladesh, while we impose a weighted average tariff on US products of 6.10 percent—where raw cotton and steel scrap face tariff rates of 0 percent and 1 percent respectively," the adviser said.