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

[Saif]

Bangladesh shouldn’t respond knee jerk reaction to US tariff measures: Debapriya

Bangladesh should not respond to the US reciprocal tariff move with a knee-jerk reaction rather view it as an opportunity. Dr. Debapriya Bhattacharya said this at a seminar in Dhaka on Saturday. Jointly organised by the Dhaka Chamber of Commerce and Industry (DCCI) and Business Initiative Leading

thefinancialexpress.com.bd

Bangladesh shouldn’t respond knee jerk reaction to US tariff measures: Debapriya
FE ONLINE DESK
Published :
May 17, 2025 15:16
Updated :
May 17, 2025 15:16

Bangladesh should not respond to the US reciprocal tariff move with a knee-jerk reaction rather view it as an opportunity.

Dr. Debapriya Bhattacharya said this at a seminar in Dhaka on Saturday.

Jointly organised by the Dhaka Chamber of Commerce and Industry (DCCI) and Business Initiative Leading Development (BUILD), Dr. Bhattacharya said that as the US focusses on China and Vietnam, Bangladesh has a window of opportunity—particularly in the garments sector.

He also said that beyond readymade garments, Bangladesh could tap into export opportunities in the leather and pharmaceutical sectors to strengthen its trade relationship with the US.

Commerce Secretary Mahbubur Rahman and International Chamber of Commerce Bangladesh (ICC Bangladesh) President Mahbubur Rahman spoke at the seminar as special guests.​

 

[Saif]

Trump tariff highlights the need for diversifying exports: special assistant to CA

He says this at a discussion organised by the International Business Forum of Bangladesh

www.thedailystar.net

Trump tariff highlights the need for diversifying exports: special assistant to CA
He says this at a discussion organised by the International Business Forum of Bangladesh

The Trump tariff serves as a wake‑up call for Bangladesh, said Anisuzzaman Chowdhury, special assistant to Chief Adviser Professor Muhammad Yunus.

"In the current circumstances, we must diversify our exports to meet this challenge and, at the same time, move toward value addition," he said at a discussion yesterday.

The International Business Forum of Bangladesh (IBFB) organised the discussion, styled "Revamping USA-Bangladesh Trade", at the IBFB office in the capital.

Recently, US President Donald Trump announced reciprocal tariffs and later suspended them for three months.

"International circumstances have changed, and we must build self-confidence while focusing on diversifying our export markets," Chowdhury said.

The government plans to establish a specialised trade negotiation body ahead of Bangladesh's graduation from least-developed country (LDC) status, he added.

M Humayun Kabir, former ambassador and vice-president of the Bangladesh Enterprise Institute, said there is a trust deficit in the United States toward Bangladesh when it comes to negotiations on such trade matters.

"We must work on how to build and sustain that trust," he said.

Zaidi Sattar, chairman of the Policy Research Institute of Bangladesh, in his keynote presentation, highlighted the importance of engaging with the USA to negotiate tariff reductions on key export items such as agricultural products and machinery.

He recommended focusing on low-revenue items and reducing tariffs on non-garment goods to help curb anti-export bias.

Bangladesh could benefit from trade diversification, particularly considering China's growing tariff burden, he said, adding that collaboration with international buyers is needed to share increased costs, stressing that Bangladesh's limited bargaining power makes flexible pricing arrangements essential.

Prof Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue, said Bangladesh needs to strengthen its trade negotiation capacity.

He said signing a free trade agreement or preferential trade agreement with the United States is possible, but Bangladesh is still not ready for that.

Rahman also said that although US tariffs are described as reciprocal, in reality, they are irrational and one-sided.

He highlighted the importance of raising the tariff issue within the TICFA (Trade and Investment Cooperation Forum Agreement) platform but acknowledged that Bangladesh is not yet adequately prepared for such discussions.

Syed Ershad Ahmed, president of the American Chamber of Commerce in Bangladesh, said there are not only tariff barriers in Bangladesh but many non‑tariff barriers as well.

For example, he said that clearing imported goods from the customs department requires 17 signatures and takes 7 to 8 days.

"Although it takes a long time to clear cargo here, in Vietnam it takes less than a day. As a result, we're losing out in competition. In this situation, modernising the customs department is very essential," he said.

Lutfunnisa Saudia Khan, president of the IBFB, said the suspension of the Generalised System of Preferences (GSP) benefits, along with the rise of protectionist trade policies in recent years, has affected Bangladesh's competitiveness in vital sectors such as garments, leather, and light manufacturing.

The suspension of GSP has slowed export growth, hindered job creation, and dampened investor confidence.​

 

[Saif]

Trump tariffs could be a defining moment for Bangladesh

On April 2, what was labelled as "liberation day", US President Donald Trump launched his global tariff war against every country in the world, including the uninhabited Heard and McDonald Islands off the coast of Antarctica. His tariffs were labelled as "reciprocal" despite they bore no relationsh

thefinancialexpress.com.bd

Trump tariffs could be a defining moment for Bangladesh
Muhammad Mahmood

Published :
May 25, 2025 00:37
Updated :
May 25, 2025 00:37

On April 2, what was labelled as "liberation day", US President Donald Trump launched his global tariff war against every country in the world, including the uninhabited Heard and McDonald Islands off the coast of Antarctica. His tariffs were labelled as "reciprocal" despite they bore no relationship to any tariffs or other trade barriers these countries imposed on US exports.

Nothing like Trump tariffs have ever been imposed before, they outstrip by far, even the Smoot-Hawley tariffs imposed by the US in the 1930s. Those tariffs ultimately led to the Great Depression and social devastation culminating in Worl War II. Trump tariffs are an economic absurdity raised to new heights disrupting the rule based global trading system with serious implications for developing countries like Bangladesh and their economic future.

Trump imposed a 37 per cent reciprocal tariff (RT) on imports from Bangladesh on that very day chiefly affecting ready-made garments (RMG),triggering alarm among exporters. Washington maintains that the step is taken, because what the US administration calls the effective rate of tariff (a term that encompasses both taxes and regulatory compliance costs) that Bangladesh charges is 74 per cent on US goods.

But Bangladesh also faces disproportionately high taxes on clothing and footwear imports into the US already. Bangladeshi imports into the US were subject to an average tariff of 15.7 per cent. The Trump tariff rate for Bangladesh is higher than for its RMG competitors India (27 per cent) and Pakistan (30 per cent) but less than Cambodia (49 per cent), Sri Lanka (44 per cent), and China (40 per cent).

In fact, Bangladesh remains the most protected economy in the South Asian region and relatively tariff protected compared to other countries in the world, with a significant portion of its tariff lines not bound, meaning the government has the flexibility to raise applied tariff rates. This practice of trade mercantilism also creates uncertainty in market access for manufactured goods. Currently the average nominal tariff rate for imports into Bangladesh stands at 28 per cent and the total tax incidence (TTI) (including all taxes importers pay) is 54 per cent.

It is to be noted that tariffs are a tax that a country imposes on itself as it imposes costs in the same way that a tax on domestic products imposes costs. Tariffs can also harm trading partners, but that doesnot change the fact that the main victim is generally the country imposing tariffs.

There are several taxes that are imposed on imports in Bangladesh, and they include Customs Duty (CD)Value Added Tax (VAT), Supplementary Duty (SD), Regulatory Duty (RD) Advance Income Tax (AIT) and Advance Trade VAT (ATV). Tariffs (CD) are a significant source of government revenue, which greatly complicates efforts to lower tariff rates.

Up until "reciprocal tariffs" (RT) were introduced, Bangladeshi exports faced an average tariff of about 15.7 per cent. If the new tariff eventually come into effect, the average tariff rate could jump to 52.7 per cent.In 2024, Bangladesh exported goods worth nearly $8.4 billion to the US, of which US$7.34 billion were readymade garments (RMG). More than four million people work in the RMG industry in Bangladesh, and most of those workers are women and most of them?live pay check to pay check-are also facing increasing job insecurity. The Trump tariffs could force factory closures ?and workers being laid off, as such the stakes are not only?economic but also existential.

In fact, the impact of RT goes far beyond the RMG industry and people directly and indirectly associated with it. The flow on effects of any declining export earnings will negatively impact macroeconomic stability of the country, could further exacerbate the balance of payments crisis.

As Bangladesh deals with this latest trade shock, it is becoming increasingly clearer that?the US is being remade by rising American economic nationalism under the banner of "Make America Great Again" (MAGA). But for Bangladesh, this is not merely a matter of the after-effects of US policy - it is?a question of national survival.

Since taking over the rein of the country the interim government headed by Nobel Laureate Mohammad Yunus has faced numerous challenges, from high inflation and unemployment to delays in implementing crucial reforms across the judiciary, political system and economy, primarily due to ongoing law and order issues. Also, there is a growing concern that members of the criminal syndicate run by ousted Hasina are regrouping.

Till now the economic and political situation in Bangladesh remains fragile and fluid. Under such circumstances Trump tariffs are an alarming news for the country because the US is Bangladesh's single largest export destination accounting for about 17 per cent of the country's exports. It is estimated that about 86 per cent of total exports to the US are RMGs. Other goods include leather footwear, leather goods, home textiles.

If Bangladesh wishes to continue to rely on RMG exports, the industry needs to keep pace with technological progress and innovate to remain a relevant player in global apparel trade. Now the future of the RMG industry depends on robotics and AI technologies which will begin to reshape the RMG industry as already happened in most other industries already.

Immediately after the imposition of the tariffs, Head of Bangladesh's interim government Muhammad Yunus has written to US President Donald Trump requesting a three-month pause on a 37 per cent tariff on imports from Bangladesh, citing efforts to boost imports from the US. To reduce the US$6.2 billion trade surplus with the US in 2024, Bangladesh has pledged to add 100 American products to its duty-free list, according to the commerce advisor. "We hope the letter will have a positive impact. Our main goal is to narrow the trade gap," he further added.

On May 7, in a letter to the Commerce Adviser, USTR Jamieson Greer stated that the US administration acknowledges the response from the Bangladesh government and is prepared to begin trade negotiations within the framework of President Trump's "reciprocal tariffs" policy. The US will cooperate closely to address bilateral trade imbalances.

However, on May 16, Trump said U.S. trading partners should expect individual letters from Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick "at a certain point over the next two to three weeks," in which they would be "telling people what they will be paying to do business in the United States." He did not specify which countries would receive letters telling them what they would pay, and which countries still could negotiate.

It is likely that many smaller, poorer countries, not considered to be of great importance to US economic relations, but which were hit by heavy tariffs, will get a letter reimposing the April 2 measures.

One of the objectives of RT is to expand market access for US agricultural products to bridge the trade gap. In fact, Bangladesh mostly imports agricultural products from the US among others. Any trade negotiation with the US to bridge the trade gap will mostly likely involve Bangladesh agreeing to import more agricultural products.

In 2023, the share of agriculture in Bangladesh's gross domestic product (GDP) was 11 per cent, but the sector is a significant employer, with approximately 45 per cent of the total labour force engaged in agricultural activities. The sector is beset with various challenges such as unsafe work environments, low wages, and long working hours. Also, a high proportion of rural women are engaged in farm activities.

Therefore, importation of highly subsidised US farm products could pose a threat to the livelihood of marginal to small farmers and farm labourers notwithstanding the impact on country's drive to attain food grain self-sufficiency. Therefore, if Bangladesh agrees to import more subsidised agricultural products it must make it clear to the US administration that any subsidised agricultural products may be subject to Countervailing duties (CVD), also known as anti-subsidy duties.

CVDs are tariffs on imported goods that are imposed to offset subsidies by the exporting country's government. CVDs help offset any negative domestic impacts that producers of the same good might experience due to competition from foreign subsidised products, in this case subsidised US agricultural products. The WTO permits CVDs to be charged only after proper investigation has been conducted by the importing country into the subsidised exports.

The interim government has already expressed its desire to start negotiations with the Office of the US Trade Representative (USTR) and is reviewing Bangladesh's own?tariffs on American imports in a bid to resolve the standoff. Now in view of Trump's declaration on May 16, it is not clear whether Bangladesh will receive a letter unilaterally deciding the tariff rate for Bangladesh or will be able to negotiate.

In either case, Bangladesh's trade relationship with the US is unlikely to undergo any drastic changes soon, but the Bangladesh government needs to approach the trade imbalance issue very carefully and strategically to ensure that the interest of Bangladeshi farmers are safeguarded.

Bangladesh could also build coalitions with similarly affected countries like Cambodia, Pakistan, Vietnam and Sri Lanka to jointly raise concerns at the WTO-- however symbolic that might be given the WTO has been rendered ineffective by the US.

But the process of bringing about changes in tariff schedules and changes in trade policy in Bangladesh is slow and complicated because of longstanding vested interests who have been benefitting from the current trade regime. Also, the political and bureaucratic systems are deeply corrupt and socially patronage culture is very widespread. As such governance issues thwart the development of a competitive economy in Bangladesh. And Bangladesh can only ignore addressing these issues at its own peril. Business as usual will take Bangladesh nowhere as has been exemplified by the mega projects implemented under the kleptocratic Hasina regime.

Bangladesh ranks 131st out of 167 countries in the Economic Complexity Index, indicating a less diverse economy. Bangladesh is ranked 143rd out of 195 countries in the world for nominal GDP per capita which is around US$2,651, making it a lower-middle-income country.

Trump tariffs now could be a defining moment for Bangladesh keeping in view the current state of the economy. A thorough reimagining of the economy could create new opportunities and spark a long-overdue economic transformation.​

 

[Saif]

Dhaka still tries for deal to avert tariff hike

Bangladesh is still trying for a deal to avert prohibitive tariffs on exports to the US market while President Trump, basking in “legislative victory”, Friday began delivering tariff-hike letters to countries. Commerce Sec

thefinancialexpress.com.bd

Trump begins tariff letter delivery
Dhaka still tries for deal to avert tariff hike
USTR to share Tariff Exemption Schedule with BD in tow days

Jasim Uddin
Published :
Jul 04, 2025 22:56
Updated :
Jul 04, 2025 22:56

Bangladesh is still trying for a deal to avert prohibitive tariffs on exports to the US market while President Trump, basking in “legislative victory”, Friday began delivering tariff-hike letters to countries.

Commerce Secretary Mahbubur Rahman said Thursday’s meeting proved to be “fruitful”.

Following that meeting the USTR is going to share the country’s Tariff Exemption Schedule with Bangladesh within two to three days - possibly by July 8 and 9.

Quoting USTR officials, the commerce secretary also expressed the hope that Bangladesh would be in a good position compared to its competitors on the USA market.

About President Trump’s reciprocal tariff finalisation before the schedule, the USTR representative replied “they do not hope so”, the secretary added.

Another commerce ministry official also hinted that “the deal with Bangladesh is likely to be delayed as the ongoing dialogue takes time”.

The officials also hope that the reciprocal tariffs may get another extension following the previous 90 days.

The commerce secretary was scheduled to fly for the US on July 6 (early morning), but he may need to reschedule his flight as the USTR is going to share a Tariff Exemption Schedule in coming days.

Talking with the FE, economist Dr Masrur Reaz said, “As per our knowledge, the big deal is highly focused on the USA’s internal tariffs.”

He hopes that it will not impact Bangladesh’s trade.​

 

[Saif]

US lowers Bangladesh tariff to 35% from 37%

Failure to secure a more favourable bilateral agreement by the Aug 1 deadline would be a significant blow to the country's export-oriented economy

www.thedailystar.net

US lowers Bangladesh tariff to 35% from 37%
Failure to secure a more favourable bilateral agreement by the Aug 1 deadline would be a significant blow to the country's export-oriented economy.

VISUAL: ANWAR SOHEL

The US has announced a plan to impose a 35 percent trade tariff on Bangladesh, a slight reduction from the 37 percent rate initially proposed, according to a Reuters report, as the August 1 extended deadline approaches.

While the new rate offers some relief, it falls well short of the 20 percent tariff that officials in Dhaka expected. The government has argued it deserves more favourable terms than competitors such as Vietnam, which recently secured a 20 percent rate.

A Bangladeshi delegation remains in Washington for last-ditch talks with the US Trade Representative's office.

Failure to secure a more favourable bilateral agreement by the deadline would see the 35 percent tariff imposed, a significant blow to the country's export-oriented economy.

President Donald Trump yesterday began telling trade partners -- from powerhouse suppliers like Japan and South Korea to minor players -- that sharply higher US tariffs will start on August 1, marking a new phase in the trade war he launched earlier this year.

The 14 countries sent letters so far, which included smaller exporters like Bangladesh, Serbia, Thailand and Tunisia, hinted at opportunities for additional negotiations while at the same time warning that any reprisal steps would be met with a like-for-like response.

Bangladesh's 35 percent tariff places it among the countries facing the highest rates in the latest round of US trade actions. In an identical letter sent to all 14 nations and released on his Truth Social platform, President Donald Trump warned against any retaliation.

Addressing Chief Adviser Muhammad Yunus, he wrote: "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."​

 

[Saif]

Bangladesh considers big-ticket US imports to counter steep Trump tariff hike

The interim government is considering new purchases of Boeing aircraft and military hardware from the United States in a bid to reduce the trade gap and avert the impact of a steep 35 percent supplementary tariff imposed by President Donald Trump. On Tuesday, Commerce Secretary Mahbubur Rahman sai

thefinancialexpress.com.bd

Bangladesh considers big-ticket US imports to counter steep Trump tariff hike

Published :
Jul 08, 2025 22:17
Updated :
Jul 08, 2025 22:17

The interim government is considering new purchases of Boeing aircraft and military hardware from the United States in a bid to reduce the trade gap and avert the impact of a steep 35 percent supplementary tariff imposed by President Donald Trump.

On Tuesday, Commerce Secretary Mahbubur Rahman said the move is part of Bangladesh’s strategy to expand government-level imports from the US in response to tariff pressures, bdnews24.com reports.

Speaking at the Secretariat, he said: “If the US relaxes some of the tariffs to boost trade, we’ll provide facilities to increase government procurement from them.”

He added, “Most of our national airline’s fleet consists of Boeing aircraft. Our infrastructure is also Boeing-compatible.

“We’re about to place orders for new planes and have been negotiating with Boeing accordingly.”

The previous Awami League government had committed to purchasing 10 large aircraft from France’s Airbus, but that plan has stalled under the new administration.

This marks the first time a senior official has indicated a shift back to Boeing.

Mahbubur also said Bangladesh would promote US cotton imports, which are already tariff-free, and prioritise American suppliers for government grain purchases.

He said, “This way we’ll expand US trade. Much of our military equipment — especially vehicles and hardware — already comes from the US.”

He clarified that “military hardware” refers primarily to armoured vehicles and support machinery, not weaponry. “There’s no pressure from the US.

“They’ve only asked that we give preference when buying. We’re fine with that.”

The announcement follows a letter from Trump to Chief Advisor Muhammad Yunus on Monday, confirming a 35 percent supplementary tariff on all Bangladeshi exports.

Trump had earlier announced steep duties on over 100 countries in April, including a 37 percent hike for Bangladesh.

Following protests, Yunus requested a three-month suspension and offered to reduce the trade deficit, which led to the current negotiations.

Despite Bangladesh announcing duty cuts on 626 products in its budget, the US reinstated a 35 percent hike, pushing average duties from 15 percent to 50 percent.

The blow is expected to hit Bangladesh’s garment industry hardest as the US is its largest export market.​

 

[Saif]

Doors yet open for talking reciprocal tariff parity

Keeping the doors yet open for possible tradeoff, the US has declared a slightly slashed 35-percent tariff on Bangladesh's products exported to the American market with effect from August 01. President Donald Trump cut 2.0 per cent from the previously proposed across-the-board tariff rate of 37 on

thefinancialexpress.com.bd

Doors yet open for talking reciprocal tariff parity
Trump declares 35pc tariffs on Bangladeshi imports, US president’s letter seeks tradeoffs in bilateral trade

FE REPORT
Published :
Jul 09, 2025 00:28
Updated :
Jul 09, 2025 00:28

Keeping the doors yet open for possible tradeoff, the US has declared a slightly slashed 35-percent tariff on Bangladesh's products exported to the American market with effect from August 01.

President Donald Trump cut 2.0 per cent from the previously proposed across-the-board tariff rate of 37 on imports from Bangladesh, suggesting in his letter to the head of Bangladesh's interim government, Prof Yunus, a rethink on 'tariff and para-tariff barriers' facing US products.

Trump wrote to the interim chief in the letter, dated July 7, "Our relationship has been, unfortunately, far from Reciprocal. Starting on August 1, 2025, we 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."

He offers that there will be no tariff if Bangladesh, or companies within the country, decide to build or manufacture product 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 writes they look forward to working with Bangladesh as 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."

These tariffs may be "modified, upward or downward, depending on our relationship with your Country. You will never be disappointed with The United States of America."

On April 02, the Trump administration had announced an additional tariff of 37 per cent. It was supposed to be made effective from April 09 last.

After request from different countries, including Bangladesh, White House announced a 90-day pause on the Reciprocal Tariff Policy on April 9, 2025. The suspension was supposed expire today (9 July, 2025).

But, instead, will expire on August 01, 2025. After extension of the timeframe, Bangladesh will get three weeks for more, in-depth, negotiations and fixing its position on the newly imposed tariff rates, according to the commerce ministry.

The newly imposed rate is higher than that of Bangladesh's RMG-export rival Vietnam as Donald Trump has more than halved the additional tariffs for Vietnam from 46 per cent to 20 per cent.

In this regard, the US administration has also sent letters -- undersigned by Trump -- to the leaders of other countries, too.

A meeting for second thoughts on the predated across-the-board 35-percent tariffs is expected to be held on July 10-11 in the morning of US time between the visiting Bangladesh delegation and the US trade officials.

National Security Adviser under the post-uprising government Khalilur Rahman and Commerce Adviser Sk Bashir Uddin are expected to join the last-ditch negotiations as they are staying in the USA to deal with the tariff issue. Commerce Secretary Mahbubur Rahman is supposed to fly for Washington and join the crucial meeting.

Contacted Tuesday, the commerce secretary said, "The commerce adviser confirmed us that the US has given Bangladesh time for July 9, 2025 to discuss the tariff issue."

Replying to a question, Mr. Rahman said "we have received a new draft agreement which totally different than previously received draft sent by the US administration.

He, however, said "we will have to work for fixing the Bangladesh position on the tariff issue and draft agreement."

Replying to another question on the new draft agreement, he said Bangladesh's exporters have to follow standard of the U.S. Food and Drug Administration (FDA) in exporting different items to the US market. Besides, necessary certification would be required in exporting pharmaceutical items.

He also mentioned that Bangladesh's RMG is now under "general tariff line". He wouldn't elaborate.

The National Security Adviser and the Commerce Adviser of Bangladesh already had a meeting with the United States Trade Representative (USTR) representatives on July 3. The meeting ended without decision.

On April 02, the Trump Administration announced the imposition of reciprocal tariffs on all US trading partners. Bangladesh currently pays an average of 15 per cent in tariffs on exports to the US market. The Trump administration announced an additional tariff of 37 per cent, bringing the total to a prohibitively steep 52 per cent.

After the levying of reciprocal tariffs, Chief Adviser of Bangladesh interim government and other nations wrote to the US administration to postpone the punitive tariffs that touched off global trade jitters.

The commerce adviser also wrote to the USTR outlining Bangladesh's trade action plans and commitments in greater detail in order to leapfrog the impending crisis.

"Considering that US buyers can try to pass the tax burden on to Bangladeshi exporters, and likewise, Bangladeshi exporters may try to shift the burden on to U.S. buyers, there is a risk that U.S. buyers may divert orders to countries with lower tariff exposure, potentially undermining Bangladesh's position as world's second-largest RMG exporter," Bangladesh Foreign Trade Institute (BFTI) feared in its previous report.

To be continued.....................​

 

[Saif]

The BFTI is also worried that Bangladesh's economy may face significant disruptions unless the challenges posed by reciprocal tariffs are addressed through trade negotiations and diversification of export markets.

An official of IIT wing under commerce ministry has informed that the US wants to export aircraft, more cotton, food-grains, LNG, military hardware etc in their bid to bridge the trade gap against Washington.

The Bangladesh government has made a move to purchase aircraft and wheat from the developed nation. Besides, it plans to request the local private traders to import more items, including cotton and wheat, from the USA.

The United States is Bangladesh's largest single-country export destination, accounting for 17.09 per cent of total exports as of FY 2023-24, according to the Export Promotion Bureau (EPB).

Bangladesh's top export to the US is ready-made garments, which currently faces most-favoured-nation (MFN) tariff rate of 11.8 per cent on knitwear and 9.91 per cent on woven garments.

Analysts make a point that despite nearly three months of back-and-forth communications, Bangladesh couldn't secure a breakthrough in trade negotiations with the United States, raising concerns among industry leaders about the consequences of failing to get the 35- percent reciprocal tariffs on Bangladeshi exports.

According to Masrur Reaz, founder-chairman of Policy Exchange Bangladesh, the government initiated several steps -- such as document exchanges and dialogue rounds -- to address the tariff issue. However, he described the outcome as "very disappointing".

"We've seen the government take various initiatives, but when the tariff remains fixed at 35 percent, it clearly shows we have failed to convince the US," says Reaz.

"Trade offers alone are not enough -- there are political dimensions that we've perhaps underestimated."

He notes that the government seemed unaware of the latest correspondence from President Trump, pointing to a potential diplomatic gap.

"We may have a shortfall in our political engagement with the US, and without building relations with Trump's core political groups, trade deals alone won't yield results," Reaz says, urging the government to take action during the remaining three weeks before the tariffs are enforced.

Shams Mahmud, Managing Director of Shasha Denim Ltd, criticizes government's negotiation approach, calling it a "missed opportunity" compared to Vietnam's success in having reduced its tariffs to 20 percent.

"Our negotiation team lacked representation from key industry associations such as BGMEA, BKMEA, and BTMA -- that's a major blind spot," observes Mahmud.

"In contrast, Vietnam took a firm stance on transshipment and leveraged its Chinese-backed investment profile, something Bangladesh does not have."

He points out most Bangladeshi businesses are locally owned, which should have been presented as a strategic strength to the U.S. administration.

The businessman still finds a chance remaining to renegotiate. "But the government must offer a roadmap showing how U.S. businesses can expand in Bangladesh to help narrow the trade gap. Tariff reduction alone won't be enough."

Echoing similar concerns, Kutubuddin Ahmed, founder of Envoy Textiles, says the outlook remains bleak as the tariff was cut only slightly -- from 37 to 35 per cent.

"If we are unable to bring it down further, international buyers will squeeze their prices to offset the tariff burden, making it harder for us to do business," he says about the possible domino effect of jacked-up tariffs on trade.

BKMEA President Mohammad Hatem also confirms that Bangladesh was granted a three-week extension to conclude a deal. "From August 1, the U.S. will begin imposing the reciprocal tariff unless a deal is finalised. The July 7 notice gives us a new window. We hope to reach an agreement within this period."

In response to criticisms, Commerce Secretary Md Mahbubur Rahman denies any inaction from the government side.

"It would be wrong to say we've been inactive or less proactive," Rahman told The Financial Express. "Since the tariffs were announced, our Chief Adviser, Trade Adviser, and I have all engaged directly -- through letters, five rounds of meetings, and constant communication."

He says the government submitted four versions of a draft framework agreement and had been actively negotiating since April 02.

However, Rahman acknowledges getting outwitted by an abrupt development. "We hadn't anticipated receiving the 35-percent-tariff letter yesterday, especially when meetings were already scheduled for this week. We finally received the full agreement document only this morning-without the schedules, we couldn't negotiate meaningfully before."

Rahman reaffirms government commitment to reaching a deal within the remaining time. "We're in the middle of the negotiation, and we're pursuing the best possible outcome. Our focus is clear: reduce the tariff and protect our existing trade relationship with the United States."

Finance Adviser Dr Salehuddin Ahmed thinks the 35-percent reciprocal tariffs on Bangladeshi products is not justified as trade gap between the two countries is not big.

"It is true that our trade deficit is only $5.0 billion while Vietnam has deficit of $125 billion. The U.S. has agreed to provide them big concession. While our deficit is small, there is no justification for slapping high duty on us," the adviser told newsmen Tuesday after a meeting of Advisers' Council Committee on Government Purchase at the secretariat.

Mr Ahmed, however, notes that the rate announced by the United States is not final one and has scope to renegotiate in a meeting to be held on Wednesday morning.

He said the tariff will be fixed through one-to-one negotiation. The meeting will be held at the office of the United States Trade Representative between officials of the two countries.

Asked whether he is hopeful of a positive outcome from the meeting, the adviser replied affirmatively. "We will take next steps based on the meeting outcome."

Replying to a query about Vietnam's success in bringing down reciprocal tariffs by 26 per cent while for Bangladesh the tariff slashed only 2.0 per cent, Mr Ahmed said the negotiation was "okay".

But, at the same time, he points out, Vietnam's trade deficit with the U.S. was $125 billion while Bangladesh's deficit was only $5.0 billion. What they did is take some blanket measures. For China the tariff is totally separate while for 14 other countries, the matter is same. "We will negotiate."

Replying to a query on revenue collection in the last fiscal year, the adviser said the generation was modest and the gap was not big. "Next year, we will try to raise collection by changing system instead of imposing additional tax and value-added tax."

Mr Ahmed hopes next year there will be no leakage in tax collection. The officials would not be able to make underhand dealings with the businessmen. "Our tax capacity is good but we could not utilise it, thus the collection is little bit short," he said.​

 

[Saif]

Bilateral treaty only means to readjust domestic tariffs for US

Government revenue authorities find limited scope to satisfy the Trump administration by reducing tariffs for US imports unless Bangladesh goes for bilateral treaty -- the only byway to skip set world trade rules. Though import duty on 110 products has been waived in the current fiscal year's budg

thefinancialexpress.com.bd

WTO RULES BAR COUNTRY-SPECIFIC TARIFF CUTS
Bilateral treaty only means to readjust domestic tariffs for US

Doulot Akter Mala
Published :
Jul 09, 2025 00:33
Updated :
Jul 09, 2025 00:33

Government revenue authorities find limited scope to satisfy the Trump administration by reducing tariffs for US imports unless Bangladesh goes for bilateral treaty -- the only byway to skip set world trade rules.

Though import duty on 110 products has been waived in the current fiscal year's budget, the step could not make the US government happy to reconsider a major cut in its previously declared 37-percent tariffs.

However, officials of the revenue board say the customs authority has started a second-round review of the US imports to further cut the taxes.

However, the waiver cannot be reciprocal to only US under the World Trade Organisation (WTO) rules where the tax cut cannot be country-specific.

Commerce Secretary Mahbubur Rahman, who flew Tuesday to join USTR negotiation in Washington, said the list of 110 products with zero-rated duty was sent to the US government earlier, "but it leaves no impact on tariff aspects".

"We are now moving to negotiate in line with the article 24 of the WTO that allows economic partnership between two countries," he said about a byway left open.

The Preferential Trade Agreement (PTA) is found preferences of the US administration which Bangladesh is going to pursue in the two-day discussion on July 10-11, 2025, he added.

The duty-free access, given in the current fiscal budget, implies on all countries as per MFN tariff rules of the WTO, he mentioned, pointing to the major reason why the US government was not convinced with this.

An MFN or Most Favored Nation tariff, within the framework of the WTO, is the standard tariff rate a country applies to imports from all other WTO-member nations, unless a preferential trade agreement exists.

"There are some non-tariff barriers such as Intellectual Property Right (IPR) issues that we have open to implement as we cannot continue the patent facility after LDC graduation in 2026," he said.

Dr Zaidi Sattar, Chairman of the Policy Research Institute (PRI), suggests the government should proceed with free-trade agreement (FTA) proposals to the US government to secure duty benefit.

"USTR wants Bangladesh to open up our trade regime. They found our tariff structure complex and non-transparent," he says.

Experts having in-depth knowledge on tariff issues can be engaged in the negotiation, he adds.

Customs officials say they have started scrutinizing US import goods over again by sorting out the list for last two financial years.

However, they find limited scope to make any significant breakthrough by reducing import taxes unless the government takes step to increase imports from the US.

Economists and trade experts, however, have found existing complex tariff structure a major barrier to convincing the Trump administration.

However, business leaders have found the government's step to negotiate with the US government having not followed the proper path.

Syed Ershad Ahmed, President of the American Chamber of Commerce, Bangladesh, says the government's negotiation process did not tread the right path.

An intensive study paper must have been prepared within the three- month timeline to pursue Trump administration, he says.

"There are several non-tariff barriers that US government prioritizes, such as implementation of intellectual property right (IPR), food safety etc," he adds.

The major imports from the US include scraps, liquefied natural gas (LNG), car, Boeing planes, and nuts.​

 

[Saif]

Salehuddin hopes to get better results in meeting with US on tariff

Finance Adviser Dr Salehuddin Ahmed today expressed his high optimism to get a much better result during the one-to-one negotiation meeting with the USTR in the USA.

en.prothomalo.com

Salehuddin hopes to get better results in meeting with US on tariff

BSS Dhaka
Published: 08 Jul 2025, 22: 16

Finance adviser Salehuddin Ahmed File photo

Finance Adviser Dr Salehuddin Ahmed today expressed his high optimism to get a much better result during the one-to-one negotiation meeting with the USTR in the USA.

"After the meeting scheduled for today (July 8) in USA (early morning in Bangladesh on July 9), we will be able to know about the further developments on the tariff issue," he said replying to queries of reporters after chairing two separate meetings on the Advisers Council Committee on Economic Affairs and the Advisers Council Committee on Government Purchase at Bangladesh Secretariat here.

Dr Salehuddin said US President Donald J. Trump has sent a letter to the Chief Adviser on the tariff issue, but the Bangladesh delegation will hold meeting with the USTR. "Only then we will be able to know on the matter in details."

He said the US president has issued such letters to some 14 countries while Bangladesh is one of those countries.

"The final tariff will be fixed in the one-to-one negotiation with the USTR. That's why we will have our meeting with them (USTR), the rate is not final yet...," he told reporters.

Asked about the Trump's plan to impose 35 percent tariff on Bangladeshi goods, the Finance Adviser said that the Bangladesh delegation is there headed by the Commerce Adviser while the Commerce Secretary will be heading today to the USA.

Replying to a question, he said that definitely they are hopeful of getting a better result in the meeting. "No matter whatever happens, we'll set our future course of actions..."

He informed that the last meeting between the Bangladesh and US sides was positive.

The Finance Adviser said although the US President has sent a letter to the Chief Adviser, but it would be finalized through one to one negotiations.

Replying to another question on reduction of 26 percent US tariff on Vietnam, he said it is true that Bangladesh's trade deficit with the USA is only around $5 billion whereas Vietnam's trade deficit with the USA is $125 billion.

He said the USA has agreed to give concession to Vietnam, but Bangladesh's trade deficit with the USA is so small.

"We're trying our best in this regard," he said adding that such letters have so far been sent to 14 countries. "But, we'll negotiate further,"

On the operations of the NBR, he said that the revenue collection in the last fiscal year (FY25) was moderate while there was no such gap.

In the current fiscal year, the Finance Adviser said the government is focusing on bringing positive changes into the system in consultation with the businessmen to avert leakage in revenue collection.

"The potentials in revenue collection are very high, but we often fail to utilize those properly," he added.

On inflation, the Finance Adviser said that good news is that the food inflation has reduced significantly last month although rising inflation was a big challenge for the country. "Thanks to our efforts, the food inflation has declined."

"And we are hopeful that the inflation will be on the declining trend in the coming months. The non-food inflation is gradually declining since there are so many sectors," he added.

The adviser informed that the day's meetings focused on the import of LNG, school shelters in Gaibandha and import of fertilizer.​

 

[Saif]

Trump’s tariff policy poses major blow for Bangladesh’s export sector

The rationale behind these retaliatory tariffs is not strong and it has only increased concern. It is still unclear what tariff rates will be applied to Bangladesh’s major competitor countries such as Vietnam, India, Indonesia, Sri Lanka, and Pakistan. Among the 14 countries included in the...

en.prothomalo.com

Trump’s tariff policy poses major blow for Bangladesh’s export sector

We lag behind in business and investment environment and our diplomatic influence is limited. Under these circumstances, Bangladesh must adopt strategic and multifaceted measures to ensure future economic security.

Selim Raihan
Published: 08 Jul 2025, 13: 39

Selim Raihan File photo

The three-month suspension period of Trump’s tariffs is about to expire. The US administration has started announcing new reciprocal tariffs in line with the initial plan announced in April. This move will create new uncertainties in global trade and the world economy.

The imposition of a 35 per cent reciprocal tariff on Bangladeshi export goods by the United States is a major economic blow, especially for the ready-made garment (RMG) sector. While the previous US tariff rate was around 15 per cent, it is now more than double. This sudden and steep increase in tariffs could undermine the competitive advantage of Bangladesh’s apparel exports.

The US is Bangladesh’s largest export market. In 2024 alone, Bangladesh exported approximately USD 8.5 billion worth of goods to the US. The burden of the increased tariffs will fall directly on garment producers and also impact millions of workers, most of whom are women.

This will also result in the risk of reduced growth, decreased employment, and increased poverty. These problems are not just economic in nature; they will also trigger social consequences.

The rationale behind these retaliatory tariffs is not strong and it has only increased concern. It is still unclear what tariff rates will be applied to Bangladesh’s major competitor countries such as Vietnam, India, Indonesia, Sri Lanka, and Pakistan.

The reality is that international trade policies are constantly evolving. In this context, Bangladesh’s response must be timely, strategic, and multidimensional. Failure to adapt quickly will deepen economic risks and stymie our future prospects.

Among the 14 countries included in the first phase, the 35 per cent tariff imposed on Bangladesh is among the highest. If it turns out that the tariff rates on competitor countries are lower than on Bangladesh, then the country will face a major blow in terms of competitiveness. Consequently, it will be difficult to make supply chain-based decisions. Buyer and investor confidence will also enervate.

The broader impact of this situation is even more serious. If production costs rise, the US buyers may shift toward countries with lower tariffs. Apparel exports account for more than 80 per cent of Bangladesh’s annual export earnings. This shock has made Bangladesh extremely vulnerable.

Even more concerning is that Bangladesh’s representatives involved in bilateral tariff negotiations with the US seem to have failed to bring a positive outcome. The failure to reach a balanced agreement increases Bangladesh’s risk further in light of current global trade realities and shifting geopolitics.

There is no denying that in an increasingly uncertain and unstable global trade environment, countries like Bangladesh are at greater risk. This is because Bangladesh has limited export product diversity. In addition, our domestic business and investment environment lags in competitiveness, and diplomatic influence is limited. Under these circumstances, Bangladesh must adopt strategic and multifaceted measures to ensure future economic security.

First, the highest priority must be given to increasing export diversification and competitiveness. This requires investment in productivity, technological upgrades, and development of new industrial sectors beyond garments. Overreliance on North American and European markets and apparel products makes Bangladesh more vulnerable to such external shocks. Therefore, diversification of both products and markets is no longer optional, rather it is exigent.

Second, Bangladesh must accelerate negotiations on free trade agreements with major trade partners. It should pursue FTAs with emerging economies in Asia, Africa, and Latin America, and strengthen South-South trade (with other developing countries) and economic cooperation. Through preferential access and the removal of trade barriers, export markets can be expanded, and dependency on specific markets can be reduced.

Third, domestic trade reform is essential. This includes reducing tariffs, minimising non-tariff barriers, and simplifying import-export procedures. These reforms will not only strengthen Bangladesh’s position in trade negotiations but also help reduce production costs, attract foreign investment, and encourage sector-based diversification.

The reality is that international trade policies are constantly evolving. In this context, Bangladesh’s response must be timely, strategic, and multidimensional. Failure to adapt quickly will deepen economic risks and stymie our future prospects.​

 

[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 June 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.Bangladesh-themed souvenirs

‘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.Bangladesh-themed souvenirs

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 June 10 and June 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]

Looming threat from reciprocal tariff

There has been heightened concern the world over about Donald Trump's reciprocal tariff ever since the radical policy on import duty was unveiled in April last. The 90-day tariff pause he announced following stock market crashes was precisely meant to secure 90 trade deals in those 90 days but he m

thefinancialexpress.com.bd

Looming threat from reciprocal tariff

Published :
Jul 10, 2025 00:01
Updated :
Jul 10, 2025 00:01

There has been heightened concern the world over about Donald Trump's reciprocal tariff ever since the radical policy on import duty was unveiled in April last. The 90-day tariff pause he announced following stock market crashes was precisely meant to secure 90 trade deals in those 90 days but he managed to accomplish only two. A day before the expiry of that period, Trump issued letters to heads of government in 14 countries, mostly South-East Asian, revising the rates of the levies announced in April. This time almost another three weeks' time has been granted for further negotiations for reaching a deal. The failure to do so will lead to enforcement of the revised tariff from August 1 next with no further extension of the deadline. According to the latest list of Trump's tariff rates, Bangladesh will face an additional 35 per cent duty on its commodities exported to the US. This is on top of the existing 15 per cent tariff Bangladesh exporters now have to pay.

The government functionaries have tried to assure the people here that the issue is yet to be settled. A delegation headed by Commerce Adviser Sheikh Bashir Uddin, now in America, should have held a meeting with the United States Trade Representative (USTR) in favour of wresting concessions from the US side. But given the outcome of keeping the channel of negotiations with Washington for three months, there is hardly any reason to be optimistic about a drastic cut on US import duty. The rate of levy on export commodities from Bangladesh was lowered by only 2.0 per cent from the original 37 per cent. Exactly at this point, figures the case of Vietnam which could successfully negotiate a 20 per cent tariff on its goods exported to the US. Most importantly, of the two trade deals the Trump administration inked in the 90-day pause period, Vietnam's was one, the other being the US-UK deal.

That one of Trump's objectives was to counter China's growing influence in South-East Asia is certainly corroborated by the Vietnam deal which, although not made public, has been touted by Trump on his social media as satisfactory because American goods will enter Vietnamese market duty-free. Notably, despite the 20 per cent levy on Vietnamese commodities, the trans-shipment clause ---goods from third countries shipped via Vietnam or of origin including parts of a different country--- will be levied 40 per cent duty. All South-East Asian nations depend heavily on Chinese stuff made on a scale and at costs no nation can compete with.

Inclusion of Bangladesh in the list of the 14 countries is therefore not intriguing. Geopolitics plays a part here and Bangladesh's increasing leaning towards China as a source country may provide the answer for not considering its case generously. Trump and Vietnamese state media confirmed US-made large-engine cars would have more access to Vietnam.

Yet, according to a leading apparel businessman, Vietnam is not a rival to Bangladesh because the garment items that country exports to America are different from those of Bangladesh. But it is a fact that if 50 per cent tariff is enforced on export of garments to the US, smaller factories here will collapse and even the larger ones will have to incur losses no matter if they have to share half of the duty burden with US brand companies. The problem will be acuter if Bangladesh's competitors like India and Pakistan clinch deals at lower tariff rates with buyers moving away to those countries. Even if the meeting with the USTR yields no positive results, it would be wise to include seasoned leaders of the garment sectors and use their US connections as a lobby in favour of Bangladesh.

There is still three week's time.​

 

[Saif]

Two per cent tariff cut is disappointing

Following all the talks and discussions over the last three months, the imposed reciprocal tariff has come down from 35 per cent from 37 per cent

en.prothomalo.com

Two per cent tariff cut is disappointing
Mustafizur Rahman
Updated: 09 Jul 2025, 22: 29

CPD's Distinguished Fellow Mostafizur Rahman speaks at a programme ERF organised at its office at Purana Paltan in Dhaka on 26 December in 2023 Prothom Alo

The Bangladesh government started discussions right after the US declared reciprocal tariff on Bangladeshi products on 2 April. Our chief adviser wrote to the US president where we urged for some concessions. The commerce adviser also spoke to them.

The government even offered duty concessions on certain products that might benefit the US in the annual budget for the 2025-26 fiscal. Apart from that, we continued talks on the non-tariff barriers mentioned by the USA, including complications in investment and implementation of the intellectual property law.

Following all the talks and discussions over the last three months, the imposed reciprocal tariff has come down from 35 per cent from 37 per cent. In other words, we could not yield that much from those discussions and talks.

As part of the tariff discussions, the United States had sent a draft of a framework agreement, but we have no idea what it contained. We do not clearly know what the US demanded and what it offered in return, nor do we know what Bangladesh asked for and what it offered in exchange—none of these four aspects are clear to us.

After Trump imposed reciprocal tariffs, we had the impression that Bangladesh was the very first among all countries to begin discussions. But after three months of talks, all we have learned is that tariffs have been reduced by just 2 per cent. That is undoubtedly disappointing.

The government has stated that the draft agreement included a non-disclosure clause. However, I believe the government could have formed a special team comprising stakeholders and experts to handle the negotiations. If our strategy had been shaped through discussions with such a team, it could have been more effective. But what we saw was that only a small group of people handled the matter, and in the end, it appears to have brought no real benefit.

The new tariff rate imposed by Trump is quite concerning for us as our main competitor Vietnam has succeeded in bringing down the new tariff rate to 20 per cent, which is 15 per cent more than us. It will result in a massive blow for the readymade garment industry of the country. It is hard to say how much of this additional duty foreign buyers will be willing to bear. It is likely they will try to pass the burden onto our exporters. But staying competitive with such a significant tariff gap is extremely difficult.

Overall, it can be said that the newly imposed reciprocal tariff has created a big threat for us. For this reason, we may lose our competitiveness in the short term. And if the tariff remains in place, our buyers could start turning elsewhere in the medium term. Since the United States is a major importer, we must continue engaging in dialogue with them. The US has announced that the new reciprocal tariffs will come into effect from 1 August, so over the next three weeks, we need to assess what more we can offer them.

Various geopolitical and economic factors are also tied to the trade discussions—things we are not privy to. Now we need to consider how much Bangladesh can realistically offer, as being a member of the World Trade Organization (WTO) imposes a range of restrictions. From that perspective, many options may not be feasible for us. Therefore, we must proceed with careful consideration of these issues.

We must certainly make efforts to reduce the tariffs. If we can bring them down to at least the same level as Vietnam's, we will be in a fairly manageable position in terms of competitiveness. But if the 35 per cent tariff remains in place, it will likely become very difficult—or even impossible—for us to cope with the situation.​

 

[Saif]

CA’s involvement sought in tariff talks

The country’s readymade garment manufacturers have sought the involvement of the interim government’s chief adviser, Professor Muhammad Yunus, in tariff talks with the United States...

www.newagebd.net

CA’s involvement sought in tariff talks
Saddam Hossain 09 July, 2025, 23:56

Professor Muhammad Yunus

The country’s readymade garment manufacturers have sought the involvement of the interim government’s chief adviser, Professor Muhammad Yunus, in tariff talks with the United States.

They also urged for an appointment with the chief adviser, where they would request Yunus that he should appoint lobbyists to address the newly imposed 35 per cent tariff on Bangladeshi goods exported to the US.

Currently, Bangladeshi RMG exporters enjoy a tariff of about 15 per cent-16 per cent in exporting to the US.

According to Otexa data, the US imported apparel items from Bangladesh for $7.34 billion, a lion share of Bangladesh’s total export value to the market, in 2024.Bangladesh-themed souvenirs

Mahmud Hasan Khan Babu, president of the Bangladesh Garment Manufacturers and Exporters Association, said that they would request the chief adviser to appoint a lobbyist to strengthen Bangladesh’s position in tariff negotiations and to persuade Washington to lower the rate.

‘We want an effective solution with the help of the government and we request the chief adviser to involve himself in the matter,’ he added.

Earlier on Monday, US president Donald J Trump imposed a steep 35 per cent tariff on Bangladesh, along with 13 other countries, through letters to 14 heads of the states.

The rate would be effective on August 1 on top of the sectoral tariffs.

Meanwhile, the second round of tariff negotiations between Bangladesh and the US started on Wednesday.

Mahmud Hasan observed that the exporters who solely worked with the US would face a substantial blow due to the tariff hike.

‘It would be challenging to find new destinations for them and if they couldn’t manage it, incidents of closing factories and losing jobs would be imminent,’ he added.

He also said that if the tariffs of competitor countries were lower, the buyers would go with them.

Fazlee Shamim Ehsan, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association, said on Tuesday that as Bangladesh’s negotiations with the US in this regard were still ongoing and they were hopeful that a positive outcome would be achieved.

Mohiuddin Rubel, managing director of the Bangladesh Apparel Exchange and former director of the BGMEA, said that Bangladesh needed to focus on reducing newly imposed tariffs and aligning them with those of its competitors to boost competitiveness.

‘By managing internal costs effectively and developing all other impacting factors, like continuing product innovation and diversification of new markets, we can strengthen the competitive edge and stimulate further growth,’ he added.

‘Some orders may relocate sources if lower costs than Bangladesh are offered, while the end users might reduce purchases due to the elevated expenses as well,’ he added.

Considering the 2024 import from Bangladesh, this tariff increase signifies an additional payment of $2.57 billion in tariff by the US importers.

In 2024, Bangladesh exported about $8.4 billion in goods to the US and Bangladesh imported US goods worth $2.2 billion.

Earlier, on April 3, the US had imposed a steep 37 per cent ‘reciprocal’ tariff on Bangladeshi exports, but on April 9, the US president declared a three-month pause on the tariff.​