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

[Saif]

2nd round of negotiations begins

The second round of talks between Bangladesh and the United States over tariff issues began on Wednesday in the US capital, Washington...

www.newagebd.net

35PC TRUMP TARIFF
2nd round of negotiations begins
Staff Correspondent 09 July, 2025, 23:58

The second round of talks between Bangladesh and the United States over tariff issues began on Wednesday in the US capital, Washington.Bangladesh-themed souvenirs

The first day of three-day talks began at 9:00pm (Bangladesh time), according to a message received in Dhaka.

Commerce adviser Sk Bashir Uddin was leading the Bangladesh side with the negotiations with the United States Trade Representative, the agency responsible for promoting US foreign trade policies.

Bangladesh national security adviser Khalilur Rahman joined the meeting virtually from Dhaka.

Dhaka has pinned its hope on the negotiations to avert 35 per cent US tariff on its exports announced by president Donald Trump in a letter to chief adviser Muhammad Yunus on Tuesday.

Bangladesh is among the first countries to resume negotiations following the issuance of president Trump’s letter to leaders of 14 countries.

Dhaka also hopes to build on the progress made during the first round of negotiations on June 27 after the US president had announced 37 per cent duty on Bangladeshi exports in April.

The imposition of 37 per cent tariff was, however, suspended until July 9.

In 2024, Bangladeshi exporters enjoyed a tariff of about 15 per cent in shipping their products worth about $8.4 billion to the US, the single largest export destination accounting for over 16 per cent of the country’s overall export of $50 billion in the year.

The new US tariff would come into effect on August 1.​

 

[Saif]

Dhaka pins hope on last-minute talks

Bangladesh has pinned its hope on the ongoing negotiation to avert 35 per cent US tariff on its exports threatened by president Donald Trump in a letter to chief adviser Muhammad Yunus on Tuesday...

www.newagebd.net

35PC TRUMP TARIFF
Dhaka pins hope on last-minute talks
09 July, 2025, 00:05

Bangladesh has pinned its hope on the ongoing negotiation to avert 35 per cent US tariff on its exports threatened by president Donald Trump in a letter to chief adviser Muhammad Yunus on Tuesday.

Economists have warned that the newly proposed tariff can deal a major blow to the country’s exports as well as economy if Dhaka fails to convince Washington to cut the rate in the ongoing negotiation with the US Trade Representative.

Commerce adviser Sk Bashir Uddin, who flew to Washington on July 4, is leading the Bangladesh side against the USTR in the current negotiation scheduled to conclude on July 11.

Aided by national security adviser Khalilur Rahman,

Dhaka is expected to assure Washington of buying more US-made goods such as fruit drinks, military hardware, and Boeing aircraft as part of cutting the country’s trade deficit with the US.

On Tuesday, finance adviser Salehuddin Ahmed said that the proposed 35 per cent duty by the US on Bangladeshi export products was not a final settlement.

The final settlement will be done through a one-on-one negotiation, he told reporters at the secretariat in Dhaka referring to the ongoing negotiation with the USTR -- after a meeting of the advisory council committee on government purchase.

The finance adviser was answering questions from reporters regarding the US president Donald Trump’s letter sent to the chief adviser asking him to consider that the 35 per cent tariff was far less than what was needed to eliminate the trade deficit disparity between two countries.

In 2024, Bangladesh exported to the US about $8.4 billion in goods and imported from that country goods worth $2.2 billion, meaning that the trade deficit was $6.2 billion for the US.

‘We have had years to discuss our Trading Relationship with Bangladesh, and have concluded that we must move away from these long-term, and very persistent, Trade Deficits engendered by Bangladesh’s Tariff, and Non Tariff, Policies and Trade Barriers,’ wrote the US president.

The US president warned of further dire consequences in case of Dhaka deciding to raise tariffs.

‘If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 35% that we charge,’ said the US president.

The US president also posted letters on his Truth Social platform unveiling higher tariffs for Japan, South Korea, and a dozen other countries, including Indonesia, Bangladesh, Thailand, South Africa and Malaysia.

These mark a step-up from the 10 per cent levy the president earlier imposed on almost all trading partners.

But the starting date of August 1 marks a delay in Trump’s re-imposition of higher duties, originally due from today.

Currently, Bangladeshi exporters enjoy a tariff of around 15 per cent in shipping their products to the US, the single largest export destination counting over 16 per cent of the country’s overall export of $50 billion in 2024.

Zahid Hussain, former lead economist at the World Bank’s Dhaka Office, said that Vietnam secured a flat 20 per cent tariff while Bangladesh faced a 35 per cent increase on existing sectoral tariffs.

‘Countries like Indonesia and South Africa, which seemed not exactly favoured by president Trump, appear to have negotiated better deals than Bangladesh,’ he added, saying that among the 14 countries announced, only four are behind Bangladesh in negotiations.

Finance adviser Salehuddin said that Dhaka had scope to negotiate a fair deal from the Washington since the trade between two nations was not so big compared to others countries.

Mustafizur Rahman, a distinguished fellow at the Centre for Policy Dialogue, said that it was informed that Bangladesh was the first country to begin discussions with the USTR.

Yet, after three months of negotiations, the outcome is deeply disappointing, he observed.

Commerce ministry secretary Mahbubur Rahman the same day said that the final discussion over the tariff would be settled in meetings on July 10 and July 11.

Calling the latest tariff proposals an extension of the previous ones, he said that both the sides had held a number of meetings over the tariff issues.

He said that he had joined all the meetings virtually.

Dhaka’s main focuses for the upcoming meetings would be protecting the country’s interest in its single biggest export market, said the commerce secretary who is expected to join the negotiation in person today.

The commerce secretary said that they were already consulting the National Board of Revenue and other stakeholders regarding the US demand for reducing duties and Value Added Tax on certain products such as wheat, soya bean, aircraft, and machineries.

He hinted that Dhaka might announce buying new Boeing aircraft shortly.

In 2008, Biman Bangladesh Airlines signed a $2.1 billion agreement with the US company Boeing to purchase 10 new aircraft delivered by 2019.

Then national flag carrier Biman has now a fleet of 21 aircraft.​

 

[Saif]

New US tariff a fresh blow to our exports

Dhaka must intensify negotiations while working on long-term resilience

www.thedailystar.net

New US tariff a fresh blow to our exports
Dhaka must intensify negotiations while working on long-term resilience

VISUAL: STAR

We are deeply concerned by the imposition of a steep 35 percent tariff on Bangladeshi goods entering the US market from August 1. This marks a new phase in the trade war launched by President Donald Trump earlier this year. Although the 35 percent rate is a slight improvement from the 37 percent initially proposed, it is still far above the 20 percent that Dhaka had hoped to secure. In fact, Bangladesh is among the hardest-hit countries in the latest round of US trade actions that imposed duties ranging from 25 to 40 percent.

Over the past few months, much has been made of the likely impacts of tariff pressures on our apparel sector. True, the sector is still well-positioned in the US market. As a global leader in low-cost, basic to mid-range garments, Bangladesh's products remain attractive to American retailers. Since the "reciprocal" tariff announcement on April 2, a new cost-sharing model has reportedly emerged among suppliers, fabric manufacturers, and retailers. Each party is apparently bearing a portion of the tariff burden, thus preventing the extra cost from falling entirely on one segment of the supply chain. Moreover, although Vietnam secured a lower, 20 percent tariff from the US, a steep 40 percent tariff slapped on any transshipped goods routed through Vietnam—targeting China's rerouting strategies—could work in our favour. Vietnam's capacity limits, as well as India's, may also benefit Bangladesh.

That said, there is no denying the effect of a 35 percent tariff on our competitiveness. As an apparel manufacturer has told this daily, "it is a major blow for Bangladesh if it remains same." Our limited leverage in bilateral discussions with the US government is a reality we must acknowledge. However, that should not discourage us from continuing to push for a fairer deal. A Bangladeshi delegation currently remains in Washington for last-ditch talks, with the next discussion scheduled for July 9. Bangladeshi officials are hopeful that the latest tariff is not "a final decision", and that something good may come out of ongoing negotiations. President Trump's subsequent statement that the August 1 deadline is "not 100 percent firm" also provides a narrow but critical window of opportunity to reach a mutually beneficial outcome.

Naturally, the immediate goal is reducing the 35 percent tariff as much as possible, but we must also look at the bigger picture. To absorb such tariff pressures and thrive in a post-LDC, protectionist world, Bangladesh should use this crisis as an opportunity to address systemic barriers such as poor infrastructure, inconsistent energy supply, corruption, cumbersome tax regulations, etc. These longstanding issues must now be seen in the context of global competitiveness. We, therefore, urge the government to focus simultaneously on securing a better deal in Washington and laying the groundwork at home for a more resilient and diversified export economy.​

 

[Saif]

Trump's aggressive reciprocal tariff may backfire

Donald Trump's aggressive tariff policy smacks of a could-not-care-less attitude. In a way he has antagonised the rest of the world except perhaps Israel. No American president has ever flaunted his country's superiority so blatantly although its military might and economic strength was unchallenge

thefinancialexpress.com.bd

Trump's aggressive reciprocal tariff may backfire

Nilratan Halder
Published :
Jul 10, 2025 23:01
Updated :
Jul 10, 2025 23:01

Donald Trump's aggressive tariff policy smacks of a could-not-care-less attitude. In a way he has antagonised the rest of the world except perhaps Israel. No American president has ever flaunted his country's superiority so blatantly although its military might and economic strength was unchallenged at some points before. Now that equation has certainly diminished considerably with the rise of China as an economic powerhouse and a strong military force thanks to its planned development of advanced technology.

Apparently, Trump gives the impression that he is more a flamboyant showman than a seasoned diplomat. But there is method in his madness. His stated goal may be 'America First' policy in waging the trade war. But essentially, it is targeted to counter the rising influence of China. This is why the list of 14 countries made of late for imposition of Trump's revised reciprocal tariff includes an overwhelming majority of South-East Asian (SEA) nations. Out of the 14, there are eight such countries which depend heavily on China's supply chain of source materials or spare parts. China has been smart enough to purchase mineral mines one after another in several countries in order to establish some kind of monopoly on a few rare metals essential for production of semiconductor and other sophisticated devices. If Vietnam with which Trump's administration has already clinched a bilateral tariff agreement allowing the country's goods to have access to US market on payment of 20 per cent levies instead of the 46 per cent announced in April last, the number would be nine.

Well, this much is understood but why Bangladesh, South Africa, Kazakhstan, Tunisia, Serbia and Bosnia & Herzegovina have figured in this list may seem puzzling. The revised tariff imposed on goods exported to the US from Bangladesh is 35 per cent, down from 37 per cent. Significantly, Japan and South Korea, both allies of the US in the region and have long been partner in countering Chinese influence in SEA have not been spared the tariff trouble. In fact, in the revised arrangement, tariff on Japan has gone up from 24 per cent to 25 per cent. South Korea's rate remains as it was at 25 per cent.

However, Cambodia and Laos originally asked to pay 49 per cent and 48 per cent respectively have been imposed hefty rates of 36 per cent and 40 per cent. The drop for Myanmar is from 44 per cent to 40 per cent. Trump's ploy is likely to backfire because China is well prepared for any such trade war. Its economy is strong enough to absorb any shock from trade disruption with the US. If China suffers, so does the US, if not more. Moreover, the Brazil, Russia, India, South Africa (BRICS) group is gaining strength with more nations coming or expressing their willingness to assemble under the umbrella. This is amply demonstrated by the response Brazil's President Luiz Inacio Lula Da Silva made at the end of the BRICS summit in Rio de Janeiro to the threat issued by Trump of imposing retaliatory tariff on BRICS members. Brazil's president categorically said that the world no longer needs 'an emperor'. Indeed, Trump's latest behaviour is more like an emperor who can make and unmake any nation or people.

The rise of BRICS of which India with its increasing leaning towards America is a founding member, has certainly proved to be a headache for Trump. The BRICS may have retracted from introducing its own currency to challenge the greenback but Mr. Lula reaffirmed that such a possibility has not been shelved permanently. "The world needs to find a way that our trade relations don't have to pass through the dollar", he insisted at the press briefing after the BRICS summit. When the humanitarian issues such as the daily massacre of the Palestinians including hungry civilians who gather looking for food aid is overlooked in favour of bombing Iran's nuclear facilities by the so-called 'emperor', his place in history's dungeon is predestined.

His trade war as a ruse for creating jobs for workers in his country and relocation of factories and industries at home will likely to end in failure. The expansive manufacturing hubs in China not only produce all kinds of machines and tools ---from needles to fighter planes, but also do so on a massive scale and at costs unrivalled by any country. So, China would not be affected much with such an industrial base centrally planned and commanded. The BRICS bloc's original members have a 40 per cent population of the world's total. The market is vast and it will expand further with more nations joining the bandwagon. If China and India can do the balancing act with India maintaining its close relations with Russia and America, the BRICS indeed have everything to gain and nothing to lose.

If political strategies follow the economic compulsions, not only China and India but the countries in the Middle East may have a greater stake in the BRICS bloc than their relations with America. Notably, Pakistan, a staunch ally of China has not been given membership of the BRICS. This is evident enough that economy gets the better of military support. Both Chinese and Indian economies are likely to grow at paces until 2050 that others cannot match. So the Asian decades are most likely to dawn curtailing much of America's dominance. Trump may end up doing exactly the opposite of his intended goal.​

 

[Saif]

Tariff talks with US very 'comprehensive', says CA’s Deputy Press Secy

The tariff talks between Bangladesh and the United States (US) were very "comprehensive", touching upon almost all the key aspects of trade relations, said Chief Adviser’s Deputy Press Secretary Abul Kalam Azad Majumder on Thursday. He said this after the first day of the second round of the

thefinancialexpress.com.bd

Tariff talks with US very 'comprehensive', says CA’s Deputy Press Secy

UNB
Published :
Jul 10, 2025 12:48
Updated :
Jul 10, 2025 14:53

The tariff talks between Bangladesh and the United States (US) were very "comprehensive", touching upon almost all the key aspects of trade relations, said Chief Adviser’s Deputy Press Secretary Abul Kalam Azad Majumder on Thursday.

He said this after the first day of the second round of the three-day tariff talks between Bangladesh and the United States that ended in Washington, DC.

Both sides will resume their meeting at 9 PM Bangladesh time on Thursday, Azad said, adding that talks will also be held on Friday.

Commerce Adviser Sk Bashir Uddin led the Bangladesh delegation in Washington, DC.

National Security Adviser Dr Khalilur Rahman and the Chief Adviser’s Special Assistant on Posts, Telecommunications and Information Technology, Faiz Ahmad Taiyeb, joined the talks virtually from Dhaka.

Senior Commerce Ministry officials also attended the meeting in the US capital.

Senior US officials from agriculture, energy, commerce, and copyright agencies joined the meeting.

Earlier, the Office of the US Trade Representative (USTR) invited Bangladesh to the second round of negotiations on the agreement on reciprocal tariffs during July 9–11.

Bangladesh is among the first countries to restart negotiations following the issuance of President Donald Trump's letter to leaders of 14 countries on July 7.

US President Donald Trump, in his letter to Chief Adviser Professor Muhammad Yunus, said, "We look forward to working with you as your trading partner for many years to come. If you wish to open your heretofore closed trading markets to the United States, and eliminate your tariff and non-tariff policies and trade barriers, we will, perhaps, consider an adjustment to this letter."

Trump said these tariffs may be modified, upward or downward, depending on the United States’ relationship with Bangladesh. "You will never be disappointed with the United States of America," President Trump wrote to Prof. Yunus.

Starting on August 1, 2025, the US President said they will charge Bangladesh a tariff of only 35 per cent on any and all Bangladeshi products sent into the United States, separate from all sectoral tariffs.

"Please understand that the 35% number is far less than what is needed to eliminate the trade deficit disparity we have with your country. As you are aware, there will be no tariff if Bangladesh, or companies within your country, decide to build or manufacture products within the United States and, in fact, we will do everything possible to get approvals quickly, professionally, and routinely — in other words, in a matter of weeks," Trump said.​