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

[Saif]

The tariff thing Trump implemented is not exclusive to us in Bangladesh, and in fact punishes other competitor countries In Asia (who compete on similar exports to the US) similarly or worse. For example, Vietnam tariff rate is higher - as is Cambodia's. Although India's rate is lower than ours, India's exports (apparel-wise) to the US are hardly as wide-ranging as that of Bangladesh. And tariff's on India's Pharma (as well as back office exports) could be punitive as well, which is yet to be announced.

The chickens have come home to roost.

I think Trump's reciprocal tariff will backfire. The USA needs the rest of the world to maintain economic growth. They alone cannot survive without the help of allies. Hope Trump understands sooner.

 

[Saif]

Bangladesh to write to Trump and US administration on tariffs

In the wake of the reciprocal tariffs imposed by the US President Donald Trump administration, the Bangladesh government will send two letters to the United States within the next 48 hours. One letter from the Chief Advisor will be sent to US President Donald Trump and one letter from the

thefinancialexpress.com.bd

Bangladesh to write to Trump and US administration on tariffs
FE ONLINE DESK
Published :
Apr 06, 2025 18:31
Updated :
Apr 06, 2025 18:31

In the wake of the reciprocal tariffs imposed by the US President Donald Trump administration, the Bangladesh government will send two letters to the United States within the next 48 hours.

One letter from the Chief Advisor will be sent to US President Donald Trump and one letter from the Trade Advisor will be sent to USTR.

The decision was taken at a meeting held at the Finance Ministry's meeting room at the Secretariat on Sunday (April 6).

Chief Advisor's Press Secretary Shafiqul Alam informed reporters after the meeting, according to local media reports.

He said the meeting was attended by four advisors, a high-level representative, a special ambassador, about ten secretaries, and four representatives from big business.

The chief advisor's press secretary said, "We are constantly talking to them (US representatives). In addition to their embassy officials in Dhaka, there are USTR officials. Whatever our decision is, we will give two letters. Both will go within the next 48 hours. One letter will go from our chief advisor to US President Donald Trump. Another letter will go from our trade advisor to USTR."

When asked by journalists what the letter would contain, he said, "Today we discussed what the letter would contain and what kind of language would be used."

Today, there were four advisors, a high representative, a special ambassador, about ten of our secretaries, and four representatives from among the big businessmen. We talked to everyone. After the discussion, it was decided that two letters would be sent within 48 hours.​

 

[Saif]

The future of US-Bangladesh trade

All hell broke loose at Rose Garden on Apr 2 as President Donald Trump unveiled new tariff structure for US trade partners all around the world sparing only 11 countries that includes Russia and North Korea. With new trade regime US aims to topple the age of globalisation- headlined Wall Street Jou

thefinancialexpress.com.bd

The future of US-Bangladesh trade
AL MAMOON
Published :
Apr 06, 2025 15:28
Updated :
Apr 06, 2025 15:32

All hell broke loose at Rose Garden on Apr 2 as President Donald Trump unveiled new tariff structure for US trade partners all around the world sparing only 11 countries that includes Russia and North Korea. With new trade regime US aims to topple the age of globalisation- headlined Wall Street Journal on their coverage of the chaotic Wednesday announcement. Indeed, it is, if the new rates come into play next Wednesday this would be a reversal for human history. It was the painstaking rounds of trade talks in the 80 years after the Second World War that lowered tariffs and led to unprecedented global prosperity, including for America (Zanny M Beddoes, Editor-in-chief, Economist).

The new numbers

The new tariff plan has two levels of levies. First, there will be a 10 per cent tariff on all imported goods across the table (US ports have started collecting it from Apr 5, breaking WTO framework). On top of that there is another double-digit tariff for about 60 countries who sell more to America than they buy from. This second layer of protectionism has erupted debate more than the first as it questions the very fundamentals of trade.

Here is the deal. The difference between goods coming into US and goods going out is divided by the former and then one half of the percentile is slapped as reciprocal tariff. For instance, in 2024 we sold $8.36 million dollar worth of goods and services while imported only $2.21. If the differential $6.15 million is divided by $8.36, one gets 74 per cent. United States Trade Representative (USTR) named it as tariffs charged to US and slapped one half of it (37 per cent) as a generous reciprocal tax. By the same formula some hardest-hit ones are Cambodia (49 per cent), Laos (48 per cent) and Vietnam (46 per cent) and Sri Lanka (44 per cent).

China secures third position in the list of United States’ trade partners only after Mexico and Canada but still could not bend it their way. Against a $143 billion import from US they sent $438.95 billion in 2024. That is a deficit of $295.4 billion. By the new flawed formula tariff slapped on China is 34 per cent. China however has reacted sharply and as this newspaper ran, has slapped back the same rate on China-bound American products.

The rationale behind

The philosophy behind this dubious calculation was the highlight of the 53-minute Liberation Day speech of the president on the White House lawn. He fuelled the ‘Made in America’ slogan and fired the sweeping new duties. Trump accused America’s trading partners of undermining the United States for decades, saying they have engaged in unfair trade practices to steal the country’s wealth and enrich their own economies (Ana Swanson, New York Times).

The unprecedented escalation of tariffs is sure to impact all countries, far and near in manifold ways. On the flip side, Americans will also face price escalation when they go to shop. Groceries, clothing, shoes, electronics - prices of nearly everything will drive up as soon as next week. America does not produce coffee, bananas, or lobster. It imports them. American giants like Nike, Ralph Lauren, Levi Strauss or H&M sources from countries like ours. In the new trade regime, the quality of our products will remain the same bringing us the same dollar amount while the prices skyrocket. This will bleed American people, but the government will bag more money in the borders. The president has a sweetener for this. He equates trade with tax. He thinks, the more America earns from trade the less the citizens need to pay as income tax. There is a 39.5 per cent tax bracket for high earners which can be removed permanently and 37 can stay as interim top and pave the way for further tax cuts.

Trump administration believes, as a mid-term effect companies will come crawling to set up plants in America and fairness will be restored as what has happened since Second World War in the name of global trade has ripped off America.

The silver lining

Some of Trump’s towering rates are imposed on our rivals in the ready-made-garment industry. It is a sigh of relief that we are not being targeted here, it is rather a wholesale action with possible repercussions from all corners of the world.

Second biggest thing is the fragile framing of the whole scheme. The cockamamie calculation is based on the deficit. If the gap narrows, the rates shrink with it, if at some point it is even then there would be no added tariff burden at all. We can work on that right from now.

This week US stock markets suffered their steepest declines since 2020 on fears Trump administration’s heightened tariffs will trigger a trade war globally and eventually drag the US economy into recession.

Our actions and reactions

We as one of the fast-growing trade partners of US (50th out of 233 countries and territories) cannot sit and wait for others to act. No other than the Chief Advisor has met with advisors and trade leaders on Apr 4. That is an excellent headway. Here is our six-point proposition of how we may navigate through in the coming weeks and months:
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• In Trade and Investment Cooperation Forum Agreement (TICFA) Council meetings between the two governments, Bangladesh has been saying it would welcome more US investment in its Economic Zones. Importing more cotton from US was also a point of discussion for last few years. The new tariff structure keeps room for a reduced rate for goods exported to the US with raw materials imported from US. Hence, cotton can take a central position in lifting our RMG exports and reducing the trade gap.​

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• The US had been vocal for implementing reforms to improve the investment climate for US-sourced FDI including initiating stakeholders’ consultations on a competitive payment mechanism, insurance market liberalisation and streamlining bureaucratic process for repatriating profits. Immediate past US ambassador to Bangladesh Peter D Huss took up these issues to multiple ministries multiple times, developments are not very visible though.​

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• The US Trade and Development Agency (USTDA) under its Global Procurement Initiative (GPI) expressed interest in recent past to assess the current Public Procurement Rules (PPR) in Bangladesh. As the guardian of PPR, Implementation, Monitoring and Evaluation Division (IMED) of Ministry of Planning can let them do so. This can have a lasting impact on designing custom capacity building programmes that support the adoption of value-based procurement mechanisms focused on obtaining the highest quality goods and services. Also, our possible new imports under USTDA guidelines can go above and beyond the proposed rates while it works in shrinking the variance.​

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• Newspapers ran reports on Apr 5 that BIDA and NBR officials detected 30 import items with higher tariffs ranging from 26.2 to 80 per cent while weighted-average tariff for all US goods combined is less than 5.0 per cent. This is a talking point for us. Look, what we have offered you, and what we got in return!​

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• Revisiting the non-tariff trade barriers is also a must do now. Double fumigation of cotton was such a barrier that took us years to cut down. Outward remittance has slowdown issues. There was never a better time for us to bring regulatory changes and policy support.​

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• Talks, talks, talks. We should engage at different levels with our counterparts in US – association and chamber level, agency and ministry levels, global forums and civil society level, bilateral or multilateral come what may. There has to be an all-encompassing effort to shake it up, accelerate import leading to an export shoot up, eventually escalating total trade.​

What we should aim at is more trade with America, not the other way round.

The writer is a former commercial counselor at the Los Angeles Consulate​

 

[Saif]

Bangladesh to send two letters to US in next 48 hrs

One letter will be addressed to US president Donald Trump from chief adviser Professor Muhammad Yu

en.prothomalo.com

Bangladesh to send two letters to US in next 48 hrs
Staff Correspondent
Dhaka
Updated: 06 Apr 2025, 19: 39

Press secretary to the chief adviser of the interim government, Shafiqul Alam.File photo

Bangladesh will send two official letters to the United States within the next 48 hours, detailing the interim government’s response to the 37 per cent reciprocal tariff imposed by the Donald Trump administration on Bangladeshi exports.

Shafiqul Alam, press secretary to the chief adviser, made the disclosure at a press briefing on Sunday, after a review meeting at the secretariat.

One letter will be addressed to US president Donald Trump from chief adviser Professor Muhammad Yunus, while the second will be sent to the US trade representative (USTR) from the finance adviser.

The review meeting continued from 3:30 pm to 5:00 pm, with the finance adviser in the chair. Present were four advisers, four business representatives, the chief adviser's high representative on the Rohingya crisis and priority issues, ten secretaries, the central bank governor, the executive chairman of BIDA, and other senior officials.

Responding to a question on the content of the letters, press secretary Shafiqul Alam said, “Discussions are ongoing over the issue. All participants expressed their views in the meeting. Action plans of Bangladesh will be mentioned in the letters.”

He added that the messages will be business-friendly and focused on ensuring mutual benefits for both countries. “The US is the largest market in the world. There is an opportunity to further expand our trade there,” Alam said.

Finance adviser Salehuddin Ahmed disclosed four key issues of the action plan of Bangladesh. Firstly, bilateral trade between Bangladesh and the US will be expanded. Secondly, the capacity of the readymade garments sector in Bangladesh will be enhanced further in comparison with the competitors, so that the US consumers consider the Bangladesh products as superior.

Thirdly, different services should be imported from the US, instead of products only. Fourthly, non-tariff barriers – both official and non-official – with the US will be removed.

Khalilur Rahman, the chief adviser’s high representative, said he spoke to the Bangladeshi ambassador in Washington on Saturday, who had met with the USTR. “The signals received from that office align with Bangladesh’s current approach," he noted, expressing optimism that a response strategy will be finalised within one to two days.

Planning adviser Wahiduddin Mahmud said major economic powers, including China, are also responding to US reciprocal tariffs, and it remains uncertain how the situation will evolve. He assured of efforts to safeguard the country’s prime export product, readymade garments.​

 

[Bilal9]

Currently, Bangladesh imposes 74% tariffs on the US goods.

I hope they come up with some reductions in tariffs for US products, we use plenty of them anyway, Cotton, Soybean oil, and even agri products like processed fruit products.

Once we reduce tariffs, they will reduce reciprocal tariffs as well.

 

[Saif]

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]

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]

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]

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]

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.​