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

[Saif]

Bangladesh considers tariff cuts on US imports

US President Donald Trump had announced retaliatory tariffs on 60 countries, including Bangladesh, on 2 April.

en.prothomalo.com

Bangladesh considers tariff cuts on US imports
Special Correspondent Dhaka
Published: 18 Jul 2025, 11: 28

Bangladesh is planning to reduce tariff on imports from the United States significantly as part of efforts to boost bilateral trade. Currently, the country imposes an average 6 per cent tariff on US imports, but the government is now considering the possibility of removing this almost entirely, according to sources in the Ministry of Commerce.

The idea is weighed ahead of a third round of trade talks with the US on reciprocal tariff cuts. In preparation, various levels of coordination are underway, and a team of Bangladeshi business leaders may accompany the government delegation to Washington. The talks are expected late next week, with commerce adviser Sheikh Bashir Uddin set to lead the team.

Commerce secretary Mahbubur Rahman confirmed to Prothom Alo on Thursday that the government is considering bigger tariff concessions on US goods.

In addition to expanding official imports of wheat, liquefied natural gas (LNG), aircraft parts, and edible oil from the US, steps have been taken to increase private-sector imports of US cotton.

He said the date for the third round of negotiations would be announced soon.

According to National Board of Revenue data, Bangladesh imported goods worth USD 2.5 billion from the US in the 2024–25 fiscal year, while exports to the US totalled USD 8.76 billion.

Ministry officials believe that even though Bangladesh may lose some revenue by cutting tariffs on US imports, the country stands to benefit if the US reciprocates with tariff reductions on Bangladeshi exports.

US President Donald Trump had announced retaliatory tariffs on 60 countries, including Bangladesh, on 2 April. In response, Bangladesh sent a letter to the US on 7 April requesting a suspension of the decision. On 9 April, the Trump administration temporarily suspended the decision for three months, keeping a minimum 10 per cent duty in place. However, on 8 July, the administration announced a new 35 per cent reciprocal tariff on Bangladesh, effective 1 August. With Bangladesh’s average current export duty to the US being 15 per cent, the total tariff will now jump to 50 per cent.

Trade experts and exporters say Bangladesh has not adequately prepared for the three-month negotiation window.

According to ministry sources, a separate delegation of business leaders may travel to the US to support the government’s position. They are expected to meet with top officials from major US retail brands importing Bangladeshi apparel and seek their support. The government also hopes to gain their strategic advice for the upcoming negotiations. A former diplomat currently based in the US has also been requested to assist with the talks.

Sources said the US signed a non-disclosure agreement (NDA) with Bangladesh on 12 June, preventing the inclusion of private representatives in the official delegation.

However, several exporters say they have yet to receive an official invitation from the government, and are unsure whether they will participate.

Meetings with US companies

The Commerce Ministry has been holding meetings with US companies and associations to assess the issues surrounding exports from the US to Bangladesh.

On Thursday, Commerce Adviser Sheikh Bashir Uddin held an online meeting with US Wheat Associates, which promotes US wheat exports globally. The government has already decided to import US wheat even at a premium of USD 20–30 per ton. Bangladesh has traditionally sourced wheat from Russia and Ukraine.

On Wednesday, the adviser also met online with Chevron, which has long operated in Bangladesh and recently received payment for all its dues. On the same day, the ministry also held talks with Excelerate Energy, with whom Bangladesh has an existing LNG import agreement.

Two more meetings are scheduled for Friday — one with the US Soybean Export Council (USSEC), which helps expand US soybean oil exports, and another with the US Cotton Association, which promotes US cotton sales globally.

Another key meeting is planned for 22 July with the American Apparel and Footwear Association (AAFA), a key stakeholder in the US retail import sector.​

 

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Adviser Rizwana urges calm over tariff concerns, says govt taking necessary steps

Environment, Forest and Climate Change Adviser Syeda Rizwana Hassan has called for restraint over repeated concerns about potential tariff hikes, asking stakeholders not to create unnecessary panic. Speaking as the chief guest at a seminar titled “Fostering Sustainable Investment” orga

thefinancialexpress.com.bd

Adviser Rizwana urges calm over tariff concerns, says govt taking necessary steps

FE Online Report
Published :
Jul 20, 2025 17:26
Updated :
Jul 20, 2025 17:28

Environment, Forest and Climate Change Adviser Syeda Rizwana Hassan has called for restraint over repeated concerns about potential tariff hikes, asking stakeholders not to create unnecessary panic.

Speaking as the chief guest at a seminar titled “Fostering Sustainable Investment” organised by the American Chamber of Commerce in Bangladesh (AmCham) at Hotel Sheraton in Dhaka city on Sunday afternoon, she said, “There is no need to create anxiety by repeatedly stating that tariffs will increase from August. The government is taking the necessary steps.”

Recalling past crises in the apparel sector, she added, “After the Rana Plaza collapse, it was said that the RMG sector would be destroyed. Many feared it would collapse. But thanks to joint efforts by the government and businesses, the sector managed to recover. If we work together, we can overcome all obstacles.”

In his concluding remarks, AmCham President Syed Ershad Ahmed stated that retaliatory tariffs are not unique to Bangladesh and he emphasised the importance of dialogue.

“If we can engage in meaningful discussions, some positive outcomes can be achieved. This is not happening only to us—many other countries are facing similar situations. As our capabilities grow, our strength in negotiations will increase,” he said.

He also noted that Bangladesh has raised issues such as importing cotton from the US and the need for customs reform and they have also been acknowledged by the Bangladesh Investment Development Authority (BIDA).

Business leaders and AmCham members also attended the event, where various aspects of sustainable investment in Bangladesh were discussed.​

 

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Bangladesh needs realistic and strategic preparation in US counter-tariff talks: SANEM

Bangladesh's export trade is poised to encounter new challenges in the wake of potential counter-tariffs from the United States, cautioned Selim Raihan, executive director of the South Asian Network on Economic Modelling (SANEM) on Sunday. Speaking at a roundtable discussion in the capital on Raih

thefinancialexpress.com.bd

Bangladesh needs realistic and strategic preparation in US counter-tariff talks: SANEM

UNB
Published :
Jul 20, 2025 17:49
Updated :
Jul 20, 2025 17:49

Bangladesh's export trade is poised to encounter new challenges in the wake of potential counter-tariffs from the United States, cautioned Selim Raihan, executive director of the South Asian Network on Economic Modelling (SANEM) on Sunday.

Speaking at a roundtable discussion in the capital on Raihan stated, "Bangladesh's bargaining power is limited. Our preparedness and strategy in tariff-related discussions are weak, which could become economically costly in the future."

The roundtable, titled 'US Counter-Tariffs: Which Way for Bangladesh?', organised by Bangla Daily Prothom Alo, brought together economists, business leaders, and researchers from across the country.

Raihan highlighted that Bangladesh is currently navigating a geopolitical reality where maintaining balanced diplomatic and commercial relations with China, India, and the United States is crucial.

"Our competitors, like Malaysia, are engaging stakeholders in discussions on complex issues despite being in the NDA. In contrast, Bangladesh is still largely confined to a limited mindset," he added.

He further noted that the World Trade Organization (WTO) has become virtually ineffective. Many powerful countries, including the US, are now more focused on bilateral negotiations to serve their own interests. In this reality, adopting a strategic trade policy has become critically important for Bangladesh.

The economist warned that Bangladesh's export-dependent sectors to the US, especially garments, leather, and leather products, could be directly pushed out of competition if the new tariff rates come into effect.

"The proposed 35 per cent counter-tariff is alarming for us. Such tariff pressure will not only impact trade but also pose a significant threat to employment, foreign exchange earnings, and the survival of industries," he stated.

He stressed that it is time for realistic and strategic preparation. Moving beyond sole reliance on the WTO, Bangladesh must establish a strong position in bilateral discussions, incorporating product-specific and sector-specific plans.​

 

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We've never seen such a "faultless, innocent, blameless" government: Debapriya Bhattacharya

Negotiations with the US involve not only tariffs but several non-tariff issues. This isn’t just about economics, but political economy and geopolitics are involved too

en.prothomalo.com

We've never seen such a "faultless, innocent, blameless" government: Debapriya Bhattacharya
Staff Correspondent Dhaka
Updated: 20 Jul 2025, 20: 02

Caption: Debapriya Bhattacharya, Distinguished Fellow, CPD Prothom Alo

Debapriya Bhattacharya, Distinguished Fellow at the Centre for Policy Dialogue (CPD), has said, “Judging by the actions of the current interim government, it seems we are trying to move forward with an extremely faultless, innocent and blameless government.”

He made the remarks while criticising the government's role in tariff negotiations at a roundtable titled “U.S. Counter Tariffs: Which Way for Bangladesh” held today, Sunday. The event was organised by Prothom Alo at a hotel in the capital and attended by prominent economists, business leaders, and researchers.


Explaining why he described the government as faultless, innocent and blameless, Debapriya Bhattacharya said, “It amazes me that we sitting here seem to understand so much, yet those in government apparently don’t. That’s why I said, I’ve never seen such a faultless, innocent and blameless government. Right now, we’re stuck in a muddy situation with these tariff negotiations. Still, I cling hold on to hope that we can collectively overcome this shortfall.”

Debapriya said that historically, very few weak governments have succeeded in tough negotiations. Likewise, there are hardly any instances of disjointed governments being able to seize major opportunities. “This is such a disjointed government that it’s hard to even tell who is leading which area of work,” he said. “Besides, when a government like this one lacks political legitimacy, its vulnerability is exacerbated. Since the current government is weak, it should have involved experts and stakeholders in compensating for its weakness in the tariff negotiations. But that didn’t happen.”

Debapriya drew a contrast between the current government and previous administrations. “I’ve worked with several governments,” he said. “In the past, they may not have known certain things, but when we brought those matters to their attention, they would say, ‘Oh really? Okay, give us your recommendations and we’ll implement them.’ But the current government says, ‘We already know all this. Don’t worry about it.’”

He noted that the negotiations with the US involve not only tariffs but also several non-tariff issues. “This isn’t just about economics, there are layers of political economy and geopolitics involved,” he said. “So those who see it merely as a tariff issue are not seeing the full picture.”

Debapriya also said that in the negotiations with the US, the services sector has been completely overlooked. “From advisors to others involved in the talks, no one is mentioning the services sector,” he said. “Yet this sector is closely tied to our exports in garments, pharmaceuticals and more.”
Criticising the non-disclosure agreement (NDA) signed with the US as part of the tariff negotiations, he said, “Instead of signing an NDA, what we should have issued is a ‘norm paper’, a document outlining our policy position.”

Trump’s reciprocal tariffs won’t hold

Debapriya Bhattacharya noted that after Donald Trump’s tariff announcement last February, four types of responses were seen globally. First, some countries retaliated. China, the European Union (EU), Canada, and Mexico, which have strong bargaining power and large markets, attempted to impose counter-tariffs. Second, some countries, including Bangladesh, entered into negotiations while granting the US unilateral trade advantages. Third, some regions, mainly in Africa and to some extent ASEAN, tried to respond jointly. Fourth, a few countries, including China, lodged complaints with the World Trade Organisation (WTO).

Debapriya Bhattacharya said that Donald Trump’s decision to impose counter-tariffs is based on flawed economic policy. “Sooner or later, they will be forced to backtrack,” he said. “When inflation starts rising in the US economy, growth slows down and employment drops, the signs will become evident. While the US economy hasn’t faced such shocks up to last month, they may emerge within the next six months. So, we must keep these possibilities in mind while negotiating.”

Debapriya added, “Let me say this emphatically: Trump’s reciprocal tariff move will not last because it’s unscientific. But before we reach that stage, we must prioritise employment and investment in the interim when making decisions.”

He emphasised that responding to the US counter tariffs requires major structural measures. “This can’t be resolved through tariffs alone,” he said. “We need to think more broadly and strategically about where Bangladesh is heading in the coming days.”​

 

[Saif]

We have started frantically looking for lobbyists: BGMEA president

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is trying to hire lobbyists to negotiate a reduction in the additional tariffs imposed on Bangladeshi products

en.prothomalo.com

We have started frantically looking for lobbyists: BGMEA president
Staff Correspondent Dhaka
Published: 20 Jul 2025, 19: 26

BGMEA president Mahmud Hasan Khan Prothom Alo

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is trying to hire lobbyists to negotiate a reduction in the additional tariffs imposed on Bangladeshi products. BGMEA President Mahmud Hasan Khan said, “Since yesterday, we have been actively trying to hire lobbyists. However, the response from them has been limited, as most are already affiliated with other countries.”

He made these remarks at a roundtable discussion on “US Counter Tariffs: What Path for Bangladesh” held today, Sunday. Prothom Alo organised the roundtable at the Sonargaon Hotel in the capital, where leading economists, business leaders and researchers of the country were present.

Mahmud Hasan Khan said, “Personally, I was still hopeful even three days ago. Those directly involved in the negotiations had informally said they were very confident. But for the past two days, there have been whispers that they’ve realised the United States Trade Representative (USTR) is not the final authority in reducing the counter-tariffs. That authority lies with the Trump administration. And it took them this long to figure that out!”

The BGMEA president added, “Had we known this a month earlier, we could have started the process of hiring lobbyists then. Since yesterday, we’ve been scrambling to engage lobbyists. But the response has been lukewarm, because most of them are already working on behalf of other countries. Some members of my organisation’s board of directors are now discouraging involvement in this process, fearing that the negotiations are likely to fail. And if it fails, why should we bear the burden of that failure?”

Backing his remarks with data, Mahmud Hasan Khan said that 1,322 BGMEA member factories export readymade garments to the United States. Among them, 100 factories send 91-100 per cent of their exports to the US. On the other hand, 822 factories export between 0 to 20 per cent of their output to that market. He further stated, “We operate with a margin of 1.2 per cent to 1.5 per cent. Even if the additional tariff is 20 per cent, we might still find some room to adjust -unless the counter-tariff imposed on India, Vietnam, and Indonesia is lower than ours.”

He continued, “Garment exports are our livelihood. Even though it’s late, we’re still trying to hire lobbyists. We’re in touch with the private-sector research institute PRI. We’ve already contacted two lobbyists, one of them has responded.” He added that unless the tug-of-war within the bureaucracy stops, the private sector won’t be able to move forward. “We need to negotiate the counter-tariffs smartly. Unfortunately, the government has never truly recognised the private sector.”​