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

[Saif]

US hinted at tariff relief for Bangladeshi goods, says Lutfey Siddiqi

Bangladeshi goods may soon face lower tariffs in the United States, Chief Advisor’s International Affairs Special Envoy Lutfey Siddiqi has said after recent bilateral discussions. On Tuesday, he said the tariffs are “expected to remain around 20 per cent”. “We hope t

thefinancialexpress.com.bd

US hinted at tariff relief for Bangladeshi goods, says Lutfey Siddiqi

bdnews24.com
Published :
Jan 27, 2026 21:56
Updated :
Jan 27, 2026 21:56

Bangladeshi goods may soon face lower tariffs in the United States, Chief Advisor’s International Affairs Special Envoy Lutfey Siddiqi has said after recent bilateral discussions.

On Tuesday, he said the tariffs are “expected to remain around 20 per cent”.

“We hope tariffs will not increase… Compared with the current rate, we have been given very strong assurances that it will be better.”

Speaking at a press conference, Lutfey highlighted Bangladesh’s participation at the World Economic Forum (WEF) in Davos, and the outcomes of multiple bilateral meetings held on the sidelines.

He added, “Following meetings with a senior US Cabinet-level official and further discussions at several levels, prospects of additional benefits in some sectors were also raised.”

The United States has imposed a 35 per cent total tariff on Bangladeshi products -- 20 per cent supplementary duty added to an existing 15 per cent.

While the tariff-reduction signal is promising, no formal decision or announcement schedule has been set, Lutfey said.

“We hope the issue will become clear by the end of this week or early next week, at which point detailed information will be shared.”​

 

[Saif]

Pitfalls of Trumpian tariffs

Aimed at pulling up the cost of foreign products, protecting domestic industries, and raising revenue, tariffs are taxes or duties imposed by a government on imported commodities. These are used as an important tool in inter-governmental economic policy-making, as they influence foreign trade, affe

thefinancialexpress.com.bd

Pitfalls of Trumpian tariffs

Helal Uddin Ahmed
Published :
Jan 29, 2026 23:44
Updated :
Jan 29, 2026 23:44

Aimed at pulling up the cost of foreign products, protecting domestic industries, and raising revenue, tariffs are taxes or duties imposed by a government on imported commodities. These are used as an important tool in inter-governmental economic policy-making, as they influence foreign trade, affect consumer prices, but often lead to disputes between nations. However, economists have traditionally considered them as potentially self-defeating protectionism that hinder international trade and increase prices for the people they are supposed to protect. This has been the philosophy that led to a decline in tariff rates levied by the global economic super-power USA from 18.4 per cent in 1934 to below 2 per cent in 2007.

Times, however, have changed and the current administration of the US President Donald Trump appears hell-bent to raise tariffs on commodities from over 90 countries of the world. The Trump administration's approach to tariffs is linked to some key economic and political objectives, which includes a desire to protect American industries and workers from perceived unfair foreign competition. The strategy particularly focuses on trade imbalances with countries like China, India, Mexico, Canada, and the European Union (EU), although political motives are also apparent in many of the United States (US) moves. But these measures already appear to be backfiring especially by hitting the US consumers, and it is not yet clear how long the US administration can sustain this highly aggressive strategy that has already rattled the global economy.

Let us now have a look at the advantages and disadvantages of imposing Tariffs. As mentioned before, tariffs protect domestic industries, as they serve as a vital shield especially for emerging domestic industries against foreign competition. Tariffs also make a significant contribution to revenues generated by a government, especially in developing countries. They can aid countries in managing their trade balances more effectively by influencing the flow of import and export trade. Besides, they can play a vital role in upholding national security by encouraging domestic production in strategic industries, and can also serve as a powerful tool in transnational negotiations and diplomatic bargains.

The disadvantages or downsides of tariffs as pointed out by critics include: higher consumer prices and reduced purchasing power of a country's citizens, as businesses typically pass on the additional costs to the ultimate consumers; curtailment of market efficiency and innovation, as protected firms face less pressure to improve products, optimise operations, and reduce costs; may trigger retaliatory steps from trading partners leading to trade wars that adversely affect the economies of all involved parties; although tariffs may protect jobs in import-competing domestic industries, they often lead to substantial job losses in export-oriented industries dependent on imported inputs; lastly, they distort market signals that often lead to inefficient allocation of economic resources in various sectors.

It may be recalled that the Smoot-Hawley Tariff Act of 1930 passed by the US Congress had raised US tariffs on over 20 thousand imported products; and this unilateral measure contributed to a collapse in international trade soon afterwards that deepened the Great Depression during the 1930s. The 2018-20 trade war waged by the previous Trump administration against China revived the fears of similar harmful consequences for international trade; however, Trump's defeat in the 2020 presidential election provided a temporary respite for other vulnerable countries. But sadly, Trump has gone back to his old ways after winning the presidency in 2024, and the world economic order is once again under serious threat due to a new and more dangerous round of aggressive trade wars being pursued by him.

Before considering the situation since President Trump assumed office in January 2025, let us first review the impact of 2018-2020 US-China trade war during his first tenure. The Trump administration then escalated trade tensions with China through the application of punishing tariffs, as average tariff rate on commodities coming to the USA from China jumped from 1.7 per cent in 2017 to 13.8 per cent in 2019. US tariffs on Chinese goods were mostly targeted at electronics, machinery, furniture, clothing, auto-parts and agricultural equipment, while Chinese tariffs on US goods were mainly targeted at soybean, pork, beef, whiskey, LNG, and automobiles. The two countries, however, signed a trade deal in January 2020 that was showcased as a victory for Trump, although the actual benefits have always been questioned.

The impact of that brief trade war on the US economy included: higher prices for consumers and businesses; disrupted supply chains; bruising the agriculture sector; and volatility in the stock market. The adverse effects in China included export slowdown, currency devaluation, and shift in global supply chains. The global implications were: formal complaints with the World Trade Organization (WTO); ripple effect on international trade; trade uncertainties leading to delayed investments and hirings by businesses worldwide. Lessons learned from that episode were broadly as follows: tariffs are not costless; they may be a negotiation tool, but not a solution; they have long-term consequences, as many tariffs remained in place altering the trade scenario permanently even after the deal came into force; policy unpredictability is harmful, as the uncertainties centring on tariff policy generated instability that adversely affected business decisions and financial markets.

The findings from a recent research-study conducted by the German Think-tank 'Kiel Institute for the World Economy' suggests that the impact of the latest Trumpian tariffs is also likely to adversely affect US citizens over time in the shape of higher consumer prices. The study showed that it was the Americans, not the foreigners, who were bearing almost the entire cost of US tariffs. It contradicts the Trumpian claim that the tariffs applied aggressively during the past year as revenue-raising and foreign-policy tool will be paid by the foreigners. The latest survey by the AP-NORC Centre for Public Affairs also shows that about 60 per cent of US adults now say Trump has hurt the cost of living. Only 16 per cent US citizens now opine that Trump has helped 'a lot' in making things more affordable, down from 49 per cent recorded in April 2025.

The study by the Kiel Institute analysed shipments worth US$4 trillion between January 2024 and November 2025 and found that foreign exporters contributed only 4 per cent of the burden emanating from last year's tariff increases (by lowering prices), while US consumers and importers absorbed 96 per cent of the burden. The tariffs also had a significant impact on trade volumes as exemplified by 18 per cent to 24 per cent reduction in shipments to the USA by Indian exporters despite maintaining prices. The Kiel report concluded that the tariffs therefore acted as a consumption tax on Americans instead of functioning as a tax on foreign producers. A co-author of the report - Professor Julian Hinz of Germany's Bielefeld University claimed: "There is no such thing as foreigners transferring wealth to the USA in the form of tariffs", because the US$ 200 billion in additional tariff revenue was paid almost entirely by the Americans. This is likely to fuel higher inflation in the USA over time, thereby jeopardising Trump's remaining months in office, especially when US Congressional elections are due in November.


Dr Helal Uddin Ahmed is a retired Additional Secretary and former Editor of Bangladesh Quarterly.​

 

[Saif]

Interim govt to sign tariff agreement with US 3 days before election

The interim government is set to sign a tariff agreement with the United States three days before the upcoming national parliamentary election. The agreement is scheduled to be signed on 9 February in Washington, United States. Bangladesh’s delegation will be led by commerce adviser Sk Bashir...

en.prothomalo.com

Interim govt to sign tariff agreement with US 3 days before election

Special Correspondent Dhaka
Published: 01 Feb 2026, 20: 21

The interim government is set to sign a tariff agreement with the United States three days before the upcoming national parliamentary election.

The agreement is scheduled to be signed on 9 February in Washington, United States. Bangladesh’s delegation will be led by commerce adviser Sk Bashir Uddin.

Although the two countries reached an understanding last August regarding the 20 per cent reciprocal tariff imposed on Bangladesh, a formal agreement was not signed at that time. That agreement is now set to be finalised and signed in Washington, DC.

To conclude the agreement with the US, commerce adviser Sk Bashir Uddin and commerce secretary Mahbubur Rahman will depart Dhaka on 5 February.

They will first travel to Japan. On 6 February, the Bangladesh–Japan Economic Partnership Agreement (BJEPA) will be signed in Tokyo, the capital of Japan.

From there, they will proceed to Washington. Officials at the Ministry of Commerce confirmed this information to the media today, Sunday.

Speaking to journalists at the secretariat today, commerce secretary Mahbubur Rahman said, “We have received the date, 9 February, from the United States. We have sent a summary seeking approval of the draft agreement and for its signing on that date.”

When asked what the reciprocal tariff rate might be, the commerce secretary said, “It is currently at 20 per cent. Some countries face the same rate, while others face a higher rate. We are hopeful that the rate will be reduced somewhat. However, we cannot say for certain until before 9 February.”

The government has not made any official statement regarding the agreement with the United States.

Regarding the Economic Partnership Agreement (EPA) with Japan, the Ministry of Commerce had stated at a press conference on 22 December that once the agreement is signed, 7,379 Bangladeshi products will enjoy duty-free access to the Japanese market from the very first day.

On the other hand, 1,039 Japanese products will receive immediate duty-free access to the Bangladeshi market, it added.

Is the government concerned about India–EU agreement?

When asked whether the government is concerned about the recently signed Free Trade Agreement (FTA) between India and the European union (EU), the commerce secretary said, “There is nothing to be concerned about.”

Stating that Bangladesh has built capacity in the ready-made garment sector and is the world’s second-largest exporter in this sector, he further said, “India, meanwhile, is very strong in textiles. They have a strong position globally. We also import raw materials from them.”​

 

[Saif]

BD stands to lose in EU, US mkts amid India tariff deals

Bangladesh is destined to face break-neck competition both in US and EU markets with India emerging as a major competitor with double advantages of Washington-proposed tariff cutback and trade deal with the 27-nation European bloc. Industry insiders and experts sound the alarm over the headwinds a

thefinancialexpress.com.bd

BD stands to lose in EU, US mkts amid India tariff deals
Exporters urge making speedy EU agreement, product, market diversification

Monira Munni
Published :
Feb 05, 2026 00:50
Updated :
Feb 05, 2026 00:50

Bangladesh is destined to face break-neck competition both in US and EU markets with India emerging as a major competitor with double advantages of Washington-proposed tariff cutback and trade deal with the 27-nation European bloc.

Industry insiders and experts sound the alarm over the headwinds about to blow from the two destinations Bangladesh heavily bank on for its readymade garment export -- the nation's main export earner -- and urge government action.

The recent announcement of lowering tariffs on Indian-made goods may be subject to as low as 18-percent tariffs, knocked down from the earlier-imposed 50 per cent. The brusque move from Washington came a week after the announcement of the trade deal between India and European Union.

Bangladesh should immediately act to retain duty -free market access to the European Union and enhance its competitiveness by removing supply-side constraints, industry leaders urge.

A slew of must-dos they list to overcome possible impact of the trade deal between the EU and India: coordinated reforms across trade policy, energy pricing and reliability, logistics and ports, access to finance, skills development and regulatory capacity building.

They also stress both product diversification, mostly by way of producing manmade fibre- based garments, and market diversification through exploring potential non-traditional markets.

Local garment exporters will face cutthroat competition and increased price pressure on the EU market after the free-trade agreement (FTA) announced recently between the EU and India comes into effect, possibly in 2027, as it would grant the neighbouring country's garment makers access to the bloc sans duty on apparel exports, they note.

On the other hand, Bangladesh's current duty-free market access there under EBA (everything but arms) scheme is scheduled to end in 2029 as the county is set to graduate from LDC status this coming November 2026 with a three-year transition period.

Though Bangladesh can apply for GSP- plus facility, its garment products would not get duty-free market access there due to safeguard clauses and are likely to face about 12-percent duty, they said, adding that by this time, another competitor - Vietnam -- would also get duty-free market access.

Talking to The Financial Express, Md Shehab Udduza Chowdhury, vice president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said India would be in an advantageous position with reduced rate of 18-percent tariffs compared to 20 per cent for Bangladesh.

On the other hand, the trade deal between the EU and India will be 'dangerous' for them, he said, apprehending a possible threat of losing market share there.

"The impact of the deal would be severe for us. Bangladesh is currently facing tough competition on the EU market as India and China are enhancing their focus there to offset US high-tariff impacts," says Faruque Hassan, managing director of Giant Group.

Bangladesh will become less competitive on the EU market once India secures duty-free access there, he warns.

The first and foremost tasks must be to sustain the duty-free market access there, the apparel maker-exporter told the FE, adding that the government also should initiate move to sign FTA to have an even footing on the largest market as a bloc.

Meantime, Chief Adviser of the interim government Prof Muhammad Yunus Sunday directed opening free-trade agreement (FTA) negotiations with the EU forthwith to safeguard Bangladesh's trade preferences on its largest export market.

MA Razzaque, chairman of Research and Policy Integration for Development (RAPID), says the US tariff reduction for India might not immediately affect the local garment shipment over there as Indian competitive advantage would not change because it is in disadvantage due to existing higher tariffs.

"But Bangladesh will face tremendous pressure in the medium term of three to five years as the EU-India trade deal would bring extreme challenges," he told the FE, explaining India with its backward linkages, including cotton to yarn and fabrics, will be a major competitor for Bangladesh which has to depend on imported raw materials.


Besides, there are no supply-side constraints for other major garment-producing countries like India, Vietnam, Indonesia, Cambodia and Pakistan as Bangladesh face, he adds.

The country has to immediately take measures to remove the supply-side constraints like gas and energy shortages, provide supports to the exporters to be ESG-compliant, develop skilled workforce, and reduce electricity and utility costs, ensure special bank interest rate and simultaneously attract foreign direct investment in RMG sector to boost MMF production.

"To ensure global work orders, FDI is a must for RMG and also for overall export diversification," he notes.

Local exporters will also face price pressure as India would be more competitive, says MA Rahim, vice chairman of DBL Group.

The entrepreneur, however, thinks the EU-India deal would not impact Bangladesh's export immediately, but it would affect gradually.

"India will be a strong future competitor for Bangladesh as the neighbouring country has its own raw materials, including cotton, yarn and fabrics, low labour cost while government facilitates the sector with a number of packages to increase competitiveness," Fazlul Hoque, managing director of Plummy Fashions, points out to underscore the urgency of counterbalancing actions.

Besides, India will jump into the market with better market access also to offset the high tariffs imposed by US administration, he notes.


Echoing Hassan's anxiety, Hoque, who ships up to 80 per cent of his total exports to the EU, says they immediately need government support to reduce cost of production and cost of fund, ensure uninterrupted gas supply and other issues that have been eating up competitiveness.

Hoque voices a consequential note: If Bangladesh fails to secure the duty-free market access under GSP-plus or a bilateral free-trade deal after LDC graduation, it will be out of the market.

The industry also needs to diversify its markets and products and produce manmade-fibre garments, exporters suggest.

They have also demanded incentives for attracting both local and foreign investment into man-made fibre or MMF wears to sustain export growth.

In the last fiscal year of 2024-25, the European Union accounted for more than 50 per cent, coming to US$19.71 billion, of Bangladesh's total garment exports worth over 48 billion US dollars.​

 

[Saif]

Bangladesh-US trade deal on 9 Feb, adviser, secy not attending in person

The Bangladesh delegation is scheduled to depart Dhaka on Friday, 6 February, and return to the country on or around 10 February.

en.prothomalo.com

Bangladesh-US trade deal on 9 Feb, adviser, secy not attending in person
Special Correspondent Dhaka
Published: 05 Feb 2026, 19: 24

Flags of USA and Bangladesh File photo

A trade agreement on reciprocal tariffs with the United States will be signed in Washington, the US capital, next Monday, 9 February.

However, the signing ceremony will begin a day earlier, on 8 February. Despite this, Commerce Adviser Sk Bashir Uddin and Commerce Secretary Mahbubur Rahman will not attend the two-day event in person.

Both the Commerce Adviser and the Commerce Secretary confirmed the matter to this correspondent separately by phone on Thursday afternoon.

Commerce Adviser Sk Bashir Uddin told Prothom Alo that neither he nor the Commerce Secretary would travel to the US for the signing ceremony.

However, a five-member delegation from Bangladesh will go to Washington for the event. A government order (GO) issued by the Ministry of Commerce on 3 February lists the names of the five members.

The delegation will be led by Khadija Nazneen, Additional Secretary at the Ministry of Commerce and Head of the World Trade Organization (WTO) Wing. The other four members are Joint Secretaries Firoz Uddin Ahmed and Mustafizur Rahman, Senior Assistant Secretary Sheikh Shamsul Arefin, and National Board of Revenue (NBR) Commissioner Rais Uddin Khan.

According to the GO, the delegation is scheduled to depart Dhaka on Friday, 6 February, and return to the country on or around 10 February.

Meanwhile, the Commerce Adviser and the Commerce Secretary left Dhaka for Japan at around 1:45 pm today. The signing of the Bangladesh–Japan Economic Partnership Agreement (BJEPA) is scheduled to take place tomorrow, Friday in Tokyo. They are traveling to Tokyo to attend the three-day event from 4 to 6 February.

The government order states that, in addition to the Commerce Adviser and the Commerce Secretary, four other officials are part of the delegation for the Japan event.

They are Ayesha Akter, Additional Secretary and Head of the Free Trade Agreement (FTA) Wing of the Ministry of Commerce; Joint Secretary Firoz Uddin Ahmed; Deputy Secretary Mahbuba Khatun Minu; and Senior Assistant Secretary Mohammad Hasib Sarkar.

Except for the Adviser and the Secretary, these four officials have already been in Tokyo for the past two days. They are expected to return to Dhaka on or around 7 February.

Commerce Secretary Mahbubur Rahman told Prothom Alo that after signing the EPA with Japan, they will return to Dhaka.

Replying to a query about who would sign the agreement with the US on behalf of Bangladesh, the Commerce Secretary said that the Commerce Adviser would sign the agreement online.

Sources at the Ministry of Commerce said that Commerce Adviser Sk Bashir Uddin has already signed the agreement in Dhaka. The signed copy will be taken to Washington by the Bangladeshi delegation. On the US side, the agreement will be signed by US Trade Representative (USTR) Jamieson Greer.​

 

[Saif]

A rebuttal on 'Pitfalls of Trumpian tariffs'

This note responds to Helal Uddin Ahmed's piece "Pitfalls of Trumpian tariffs" (P4, FE, January 30, 2026) by examining the analytical assumptions underlying the critique rather than the policy itself. The critique of Trumpian tariffs rests on a familiar and largely accurate observation: tariffs ra

thefinancialexpress.com.bd

A rebuttal on 'Pitfalls of Trumpian tariffs'

Abdullah A Dewan
Published :
Feb 06, 2026 21:45
Updated :
Feb 06, 2026 21:45

This note responds to Helal Uddin Ahmed's piece "Pitfalls of Trumpian tariffs" (P4, FE, January 30, 2026) by examining the analytical assumptions underlying the critique rather than the policy itself.

The critique of Trumpian tariffs rests on a familiar and largely accurate observation: tariffs raise domestic prices, and American consumers bear most of the immediate cost. Empirical studies, including those cited by the author, convincingly show that tariffs function in practice as a consumption tax rather than a direct levy on foreign producers. On this narrow point, the argument is sound. Tariffs are not costless, and they do not extract foreign wealth in the simplistic way political slogans suggest.

Yet stopping the analysis creates a serious distortion. It treats price effects as the sole metric of policy evaluation, while silently excluding the strategic objectives for which tariffs are designed. Tariffs are not introduced primarily to make imports more expensive; higher prices are the mechanism, not the objective. The objective is structural: to alter incentives, reshape production decisions, and reduce dependency on external suppliers whose reliability is increasingly uncertain.

The article's central weakness lies in its failure to engage with this distinction. By framing tariffs only as a tax on consumers, it implicitly assumes that the pre-tariff equilibrium-cheap imports, persistent trade deficits, and deep foreign dependence-is both optimal and sustainable. That assumption is asserted through omission rather than argument. Nowhere does the author examine whether a system in which the United States (US) functions indefinitely as the world's dumping market, absorbing surplus production from dozens of countries, remains viable in a world of geopolitical rivalry, supply-chain weaponisation, and technological competition.

The tariff critique also treats trade deficits as benign side-effects of openness rather than as structural signals. Persistent deficits are not merely accounting outcomes; they reflect long-term patterns of industrial hollowing, labour displacement, and strategic vulnerability. When domestic manufacturing capacity erodes, the economy loses more than jobs. It loses production ecosystems, skilled labour pools, and the ability to scale critical goods quickly in times of crisis. The pandemic-era shortages of medical equipment, pharmaceuticals, and semiconductors exposed the cost of that dependence with uncomfortable clarity. To acknowledge that tariffs raise prices without addressing the cost of dependency is to present only half the balance sheet.

Reserve-currency privilege allows the United States to sustain consumption despite production erosion, but it delays adjustment rather than eliminating the underlying structural cost.

Moreover, the article treats employment effects asymmetrically. Job losses in export-oriented sectors are highlighted, while potential job gains in import-competing and upstream domestic industries are largely dismissed or assumed away. This reflects an implicit preference for consumer welfare over producer resilience. Yet economic policy has never been guided by prices alone. Employment, wage stability, and regional industrial balance are political-economic variables, not externalities. A tariff that raises prices today but restores domestic production capacity tomorrow may impose a short-term cost in exchange for long-term resilience. Whether that trade-off is worth making is a legitimate debate-but it cannot be avoided by reducing tariffs to inflation statistics.

National security, too, appears in the article only as a rhetorical footnote rather than a serious analytical category. In an era where trade dependencies are increasingly leveraged for political coercion, supply chains are no longer neutral conduits of efficiency. Dependence on foreign producers for critical inputs-from energy components to advanced electronics-creates strategic exposure. Tariffs, in this context, function less as protectionism and more as insurance premiums. Like all insurance, they carry an upfront cost that is visible and unpopular, while the benefit lies in risks that materialize only under stress.

This does not imply that all trade should be securitised, but it does require recognising that in critical sectors, efficiency alone is no longer a sufficient organising principle.

Finally, the article's historical framing is selective. Smoot-Hawley is invoked as a cautionary tale, but without acknowledging that the global economy of the 1930s bore little resemblance to today's deeply financialised, reserve-currency-anchored system. The United States now issues the world's dominant currency, finances its deficits through capital inflows, and anchors global demand. These privileges allow it to run trade deficits-but they also mask the erosion of domestic production beneath stable aggregate consumption. Treating that erosion as irrelevant because prices remain low confuses short-run comfort with long-run strength.

This rebuttal does not assume that tariffs are universally effective or sufficient on their own. Tariffs are instruments, not guarantees. Their ability to reshape production incentives depends on scope, design, duration, and the presence of complementary policies such as investment incentives, infrastructure, and workforce development. A poorly designed tariff regime can indeed entrench inefficiency or invite rent-seeking. But acknowledging conditional effectiveness does not invalidate the rationale for tariffs any more than acknowledging implementation risk invalidates monetary or fiscal policy. The relevant analytical question is not whether tariffs are flawless, but whether a price-only framework is adequate for evaluating policies intended to influence production capacity, strategic resilience, and long-term economic structure.

In the end, the article's discomfort with tariffs reflects a deeper attachment to the pre-Trump global trade order-one in which the United States consumes, others produce, and adjustment costs are absorbed quietly by domestic labour rather than reflected in consumer prices. Tariffs disrupt that arrangement by making those costs visible. Whether one supports or opposes tariffs, an honest analysis must confront that reality. To focus exclusively on price effects while ignoring production, employment, resilience, and strategic autonomy is not neutrality. It is a choice of frame-and one that leaves the most important questions unasked.



Dr Abdullah A Dewan, Professor Emeritus of Economics, Eastern Michigan University (USA); former physicist and nuclear engineer, Bangladesh Atomic Energy Commission (BAEC).​

 

[Saif]

Govt to seal US trade deal on Monday to reduce tariff

Bangladesh is scheduled to sign a trade agreement with the United States on Monday aimed at reducing reciprocal tariffs, with commitments to import more American goods to narrow a trade imbalance heavily favouring Bangladesh.

www.thedailystar.net

Govt to seal US trade deal on Monday to reduce tariff

Under the deal, US will not levy tariffs on garment items made from American raw materials

Refayet Ullah Mirdha

Bangladesh is scheduled to sign a trade agreement with the United States on Monday aimed at reducing reciprocal tariffs, with commitments to import more American goods to narrow a trade imbalance heavily favouring Bangladesh.

Under the proposed agreement, the US will not levy tariffs on garment items made from American raw materials such as cotton and exported to American markets, according to Commerce Secretary Mahbubur Rahman.

Besides, the Donald Trump administration will also reduce the reciprocal tariff rate further for Bangladesh as at least two advisers of the interim government said recently along with Secretary Rahman on several occasions.

However, they did not say exactly what percentage of the reciprocal tariff may be reduced for Bangladesh.

The arrangement is expected to offer substantial relief for Bangladesh’s garment sector. For instance, if a T-shirt contains 70 percent American cotton and yarn by value, US customs authorities will exempt that portion from the 20 percent reciprocal tariff imposed on Bangladeshi goods last year.

This matters significantly because garments account for nearly 95 percent of Bangladesh’s exports to the US, and many factories can use roughly 70 percent American materials in their products.

The prospect of preferential access has already shifted sourcing patterns. Imports of cotton and soybeans from America have increased as Bangladeshi millers and traders redirect their purchases from other countries.

The signing ceremony will be held in a hybrid format. Commerce Adviser Sk Bashir Uddin and Secretary Rahman will attend virtually, while a handful of senior commerce ministry officials will travel to Washington to attend in person alongside their American counterparts.

“We will send the documents to the US as only a few of our officials will fly there to attend the deal signing ceremony,” Secretary Rahman said.

The commerce adviser cannot attend in person because the government has only one working day before the national elections scheduled for February 12, he added.

The agreement follows intense negotiations to reduce the US tariff burden on Bangladesh. The country exports more than $8 billion worth of goods to the US but imports only $2 billion, creating a substantial trade gap.

In his Liberation Day announcement on April 2 last year, US President Donald Trump imposed a 37 percent additive reciprocal tariff on Bangladeshi exports. After negotiations, the Trump administration agreed to lower the rate to 20 percent in exchange for Bangladesh’s commitment to import more US products.

Bangladesh has pledged to buy American aircraft from Boeing, along with greater quantities of cotton, soybeans, liquefied petroleum gas and other goods to reduce the trade gap with the US. An agreement has been signed to import 3.5 million tonnes of wheat from America over five years, with approximately 660,000 tonnes already purchased.

Meanwhile, the Bangladesh Garment Manufacturers and Exporters Association said in a statement that negotiations with the Office of the United States Trade Representative (USTR) regarding the deal have been ongoing for over six months.

“Although we are informed that a formal trade deal will be signed on February 9, we urge the Ministry of Commerce and all parties negotiating with the USTR to ensure that the signing is completed within this timeframe so that Bangladesh can start preparing itself with the preferential deal of utilising US cotton to attain zero tariff access, which we understand as the centrepiece of the trade deal,” the association added.​

 

[Saif]

Bangladesh-US tariff deal likely today

Bangladesh eyes further cut in the rate of United States-imposed reciprocal tariff as the country is set to sign a deal with the US today in Washington amid purchasing more US goods.

www.newagebd.net

Bangladesh-US tariff deal likely today

Further cut in tariff expected amid purchasing more US goods

Staff Correspondent 09 February, 2026, 00:19

Bangladesh eyes further cut in the rate of United States-imposed reciprocal tariff as the country is set to sign a deal with the US today in Washington amid purchasing more US goods. Bangladesh cultural tours

On Sunday, the commerce ministry officials said a number of ministry official were now travelling Washington to sign the deal.

The signing ceremony is expected to be attended virtually by commerce adviser Sk Bashir Uddin and commerce ministry secretary Mahbubur Rahman.

Dhaka has been negotiating with Washington for a cut since US president Donald Trump announced reciprocal tariffs against its trading partner countries, including Bangladesh, in April 2025.

In August, the US decided to reduce the reciprocal tariff on imported goods from Bangladesh to 20 per cent from the previously announced 37 per cent.

The US decision came following announcement by the interim government led by Professor Muhammad Yunus to purchase 25 aircraft from Boeing of the US.

Besides, 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 of about $6 billion, tilted towards Dhaka.

At a press briefing at the secretariat in the capital Dhaka on Sunday, the commerce adviser expected that the US would reduce tariff on Bangladeshi exports.

On February 2, the US announced lowering reciprocal tariff on India to 18 per cent after lowering it to 19 per cent for Pakistan in August 2025.

The commerce adviser said that negotiation had been continued with the emphasis on securing zero tariffs on the key export products, including readymade garment.

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

Commerce ministry officials said that they were bargaining with the US for tariff concession on the RMG items made from imported US raw materials, including cotton.

Local millers and traders have already increased importing cotton and soya beans from the US, redirecting their purchases from other countries.

Focusing on the proposed purchase of aircraft from Boeing of the US, the adviser told reporters at the briefing that Bangladesh had export potential worth about Tk 1,00,000 crore to the US market, depending on market access.

The national flag carrier, Biman Bangladesh Airlines, has decided to purchase 14 aircraft from Boeing after reviewing proposals from Boeing and Airbus, a European aerospace corporation.

The adviser said that the deal could be signed before the national parliamentary elections scheduled for February 12, if the negotiations were finalised.​