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

[Saif]

2nd round of negotiations begins

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

www.newagebd.net

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

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

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

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

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

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

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

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

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

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

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

 

[Saif]

Dhaka pins hope on last-minute talks

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

www.newagebd.net

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

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

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

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

Aided by national security adviser Khalilur Rahman,

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

He said that he had joined all the meetings virtually.

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

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

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

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

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

 

[Saif]

New US tariff a fresh blow to our exports

Dhaka must intensify negotiations while working on long-term resilience

www.thedailystar.net

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

VISUAL: STAR

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

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

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

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

 

[Saif]

Trump's aggressive reciprocal tariff may backfire

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

thefinancialexpress.com.bd

Trump's aggressive reciprocal tariff may backfire

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

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

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

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

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

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

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

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

 

[Saif]

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

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

thefinancialexpress.com.bd

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

[Saif]

Bangladesh faces higher rate despite lower trade gap

Although Bangladesh is the 52nd largest trading partner of the US and its trade deficit with the latter is much lower than its competitors, the Donald Trump administration has imposed a higher 35 per cent tariff on its products, analysts say. They say the tariff on Bangladesh has likely been impos

thefinancialexpress.com.bd

Bangladesh faces higher rate despite lower trade gap

FHM Humayan Kabir
Published :
Jul 10, 2025 09:57
Updated :
Jul10, 2025 09:57

Although Bangladesh is the 52nd largest trading partner of the US and its trade deficit with the latter is much lower than its competitors, the Donald Trump administration has imposed a higher 35 per cent tariff on its products, analysts say.

They say the tariff on Bangladesh has likely been imposed on political grounds rather than the reciprocal methodology.

The countries which have good relations with the US or better lobbies in the Trump administration would get benefits, while the weak and poor ones like Bangladesh would be affected by the unjustified tariff structures, they add.

Analysing the US government's trade data, The Financial Express found that compared to Bangladesh, America's trade deficit with Vietnam was more than 20 times higher and with India 7.5 times greater in 2024.

Vietnam is the 10th largest trading partner of the US, while India is the 12th largest.

Although the US has imposed the tariffs on a reciprocal basis (by calculating trade deficit and the tariff imposed by the counterpart nation), the rates for Bangladesh are much higher than the latter's competitors like Vietnam and India.

The Trump administration has announced a 35 per cent tax on the import of Bangladeshi products, while it has drastically reduced that for Vietnam to 20 per cent, which was 46 per cent earlier.

Besides, the US proposed 26 per cent tax on Indian products, which would be effective from August 1 this year.

Trump on July 7 sent tariff letters to Bangladesh, Indonesia, Japan, South Korea, Malaysia, Thailand, South Africa, and several other countries.

The letters, signed by Trump, outlined the tariffs applicable to goods entering the US from August 1.

Earlier on April 2, Trump had announced reciprocal tariffs of 37 per cent for Bangladesh, 26 per cent for India, and 46 per cent for Vietnam.

However, he paused tariff implementation for 90 days to allow room for negotiations.

Later, the US president reduced the tax to 35 per cent for Bangladesh and 20 per cent for Vietnam.

The Indian media reported that the country is now very close to having a deal with the US to get some tariff benefits from the 26 per cent rate imposed in April.

According to the International Trade Administration (ITA) of the US Department of Commerce, Bangladesh exported goods worth $8.36 billion to the US in 2024 and imported products worth $2.29 billion from there, resulting in a $6.06 billion trade gap, which was in favour of Bangladesh.

The trade gap between the US and Vietnam was $123.46 billion in 2024 as the Southeast Asian nation exported goods worth $136.501 billion to the US and imported products worth $13.044 billion from there, the ITA data showed.

Moreover, India exported goods worth $87.34 billion to the US in 2024 and imported products worth $41.537 billion from there, resulting in a trade gap of $45.80 billion, which was in favour of the South Asian nation.

Mexico and Canada are the largest and 2nd largest trading partner of the US, respectively.

Dr Selim Raihan, an economics professor at Dhaka University, told The Financial Express Trump's reciprocal tariff is more political than commercial as he is now considering the countries that have better negotiation capabilities on a case-by-case basis.

He said since Vietnam's negotiation capacity is better than Bangladesh, it has been able to convince the Trump administration, thus bringing down the tariff to 20 per cent from the 46 per cent imposed earlier, which was 9.0 percentage points higher than that of Bangladesh.

This is a clear violation of the World Trade Organisation (WTO) rules, Mr Raihan, also the executive director of South Asian Network on Economic Modelling, told The Financial Express.

He also said this is a more geo-political or political or non-commercial issue.

Policy Exchange Bangladesh Chairman and Chief Executive Officer Dr Masrur Reaz told The Financial Express this is more political than commercial as it does not have the possibility of being resolved through trade talks only.

Trump considered the US investment; its exports, especially weapons and some other sophisticated products; and its political concerns and priorities while planning the reciprocal tariff imposition, he said.

Bangladesh needs to contact the powerful US political personalities and close allies of Trump to renegotiate the tariff structure, he said.

"Only trade negotiations are not enough for bringing down the 35 per cent tax imposed on Bangladeshi products. The country has to take measures from the political angle," the economist added.

Meanwhile, a Bangladesh government team, led by the commerce adviser, is now holding a discussion with the US authorities to reduce the massive 35 per cent tariff.

The two-day negotiation will end today (Thursday) in Washington, officials said.​

 

[Saif]

Fakhrul urges interim govt to engage experts in talks with US over tariff

BNP Secretary General Mirza Fakhrul Islam Alamgir on Thursday urged the interim government to involve the most qualified individuals in negotiation with the United States over the recently imposed 35 per cent tariff on Bangladeshi products.

en.prothomalo.com

Fakhrul urges interim govt to engage experts in talks with US over tariff

UNB Dhaka
Published: 10 Jul 2025, 21: 26

BNP secretary general Mirza Fakhrul Islam Alamgir File photo

BNP Secretary General Mirza Fakhrul Islam Alamgir on Thursday urged the interim government to involve the most qualified individuals in negotiation with the United States over the recently imposed 35 per cent tariff on Bangladeshi products.

“The United States has imposed a 35 per cent tariff on our products. Our main export item is ready-made garments. If this sector is hit with such a high tariff, it could collapse entirely and may not recover. That would break the backbone of our economy,” he said at a discussion.

The Bangladesh Federal Union of Journalists (BFUJ) and the Dhaka Union of Journalists (DUJ) organised the programme titled ‘Journalists’ Role in the July Uprising by Students and Masses’ at the National Press Club.

Fakhrul said the US tariff issue is a very serious concern for the country and its economy. “I’m not sure how much attention the interim government has given to it. They should have focused more and engaged the most competent people to negotiate with the US.”

He thinks that time has not yet run out and called on the government to take immediate steps to protect the industry, safeguard jobs--especially for women--and prevent further damage to the economy.

The BNP leader also addressed the issue of border killings and push-in incidents, urging journalists and the media to take these matters more seriously.

“We are not addressing the issues of border killings and push-ins with the seriousness they deserve. The news is being published in small sections in newspapers. I request all journalists and media professionals to treat these matters with the importance they deserve. These are not minor issues. Such incidents are happening regularly across various parts of the border,” he said.

Fakhrul also called upon the interim government to raise these issues strongly with India. “These matters must be brought to a conclusive stage of negotiation through proper diplomatic discussions with India.”

Expressing concern over the flooding in Feni, he also highlighted the unresolved issue of fair water sharing from common rivers with India.

“The water-sharing issue remains unsettled with India. Flooding has already begun in Feni, and more could follow as the monsoon continues. The interim government must act strongly to ensure a fair distribution of water,” Fakhrul said.

He also stressed the need for national unity to protect democratic rights, saying that true democracy cannot thrive without tolerance and practice.

“There is a need to build national unity. But where should that unity lie? It should be in defending our democratic rights. I may not agree with you, but I would give my life to defend your right to express your opinion… That is what national unity means,” the BNP leader said.

He said tolerance of differing views is essential to achieving democracy. “Sadly, in Bangladesh, we have never truly practised democracy in that spirit. Democracy is a culture, and without practising it, how can we expect to achieve it?”

He urged the youth to prepare themselves to build a truly democratic Bangladesh. “We have fought again and again. Now, our young generation must be ready to move forward and succeed in building a genuinely democratic nation.”​

 

[Saif]

Bangladesh-US talks on tariff walls end today

Hope against hope lives on for cuts in the 35-per cent additional tariffs on Bangladeshi exports to the US market as the second round of three-day negotiations between Bangladesh and the United States end today in Washington. Meanwhile, the Trump-touted 'reciprocal tariff' turmoil begins to grate

thefinancialexpress.com.bd

Bangladesh-US talks on tariff walls end today
US buyers seeking alternative apparel sourcing to skip price rises

MIR MOSTAFIZUR RAHMAN and JASIM UDDIN
Published :
Jul 11, 2025 08:14
Updated :
Jul 11, 2025 12:56

Hope against hope lives on for cuts in the 35-per cent additional tariffs on Bangladeshi exports to the US market as the second round of three-day negotiations between Bangladesh and the United States end today in Washington.

Meanwhile, the Trump-touted 'reciprocal tariff' turmoil begins to grate on US buyers as reports say some of them are seeking alternative apparel sourcing to skip price rises.

"The talks in the first two days were very comprehensive, touching upon almost all the key aspects of the trade relationships between the two nations," said a spokesperson for the CAO in Dhaka Thursday.

The two sides resumed their meeting at 09.00pm Bangladesh time Wednesday. Last-ditch negotiations will also be held today (Friday) in a bid to break the standoff that affects Bangladesh's trade deeply.

Commerce Adviser Sheikh Bashiruddin led the Bangladesh delegation in Washington. National Security Adviser Dr Khalilur Rahman and Chief Adviser's Special Assistant on ICT and Telecommunications Faiz Ahmed Tayeb joined the talks virtually from Dhaka. Senior Commerce Ministry officials also are in attendance at the meet in the US capital.

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

A number of apparel buyers are seeking alternative sourcing options amid rising tariffs -- some are even visiting emerging apparel-manufacturing countries. On the other hand, some buyers have already halted order placements in Bangladesh due to uncertainty surrounding the US tariff hike and ongoing negotiations with Bangladesh, according to industry owners.

They also mention that this uncertainty may cast impact on up to 25-percent orders for the upcoming seasons for summer, autumn-winter 26/27. While summer is the biggest season for Bangladesh knit-garment export to the USA, which accounts for about 30 per cent of Bangladesh RMG exports.

Industry-insiders say considering the production cost, including low tariffs, Jordan, Egypt, Kenya and Ethiopia could be alternative sourcing destinations. However, as a saving grace for Bangladesh apparel, these countries have infrastructural challenges.

Referring to the past shift of garment production from China to Bangladesh due to high tariffs and rising costs, a similar trend is now being observed -- production is moving not only from Bangladesh but also from India, Pakistan, Vietnam and other countries.

Due to the newly announced 35-percent reciprocal tariffs by Donald Trump, Bangladeshi products may now face a total tariff of 51 to 82 per cent on the US market. As a result of this change, no matter how capable or efficient Bangladesh's garment industry is, sustaining export to the US will become increasingly difficult under such high-tariff trade regime.

Firstly, this steep tariff hike will make Bangladeshi products uncompetitive in terms of price. Although Bangladesh currently makes garments under tariff structures that are higher, lower, or similar to those of China, Pakistan, India or Vietnam, this advantage is unlikely to last. This is because the nature of the textile and garment industry is such that production tends to shift to countries where costs, tariffs and labour wages are lower.

Sparrow Group Managing Director Shovon Islam says, "This is a natural rule of business and part of the global production cycle. Although such a shift requires infrastructure development, investment and quality improvement in some countries -- as was the case for Bangladesh -- these challenges will gradually be overcome. Countries like China, India and South Korea are expected to invest heavily in those emerging production destinations."

He also mentions that Chinese investors may invest in South American countries as they are enjoying duty-free trade facility, bar Brazil, a China-led BRICS-member country.

Talking with The Financial Express Thursday, Shahs Denims Ltd Managing director Shams Mahmud said almost every US buyer halted orders after the tariff hike declared in April.

"They are waiting for decision from the Trump administration on import from Bangladesh -- they would not place before the final settlement," he added about the stalemate.

Shams Mahmud said, "We were very careful about US orders since Trump's second-time election and now only 2.0-percent capacity has been occupied for US buyers."

Shovon Islam questions the effectiveness of the initiatives taken by the interim government of Bangladesh, saying the visible efforts have failed to reduce the additional 35-percent tariffs.

He emphasizes that exporters should explore Asian countries as alternative destinations to weather the headwinds blowing in from the US in the West.

He adds that for Bangladesh to survive in this shifting landscape, it is essential to build competitive advantages through infrastructure development, technological advancement, and skills enhancement.

Shams Mahmud also notes that the letter from US President Trump has extended the negotiation window for Bangladesh until August 1.

Shovon Islam states that his company faced a cancellation from a major US buyer, the largest online retailer.

"We have a $10 million business with that retailer," he explains. "Recently, we received orders that were originally placed through a Vietnamese company. Unfortunately, those orders were redirected back to Vietnam due to the tariff issue."

He says another US brand, with whom they do around $60 million in annual business, may reduce their orders by up to 10 per cent this year.

Last year, Sparrow Group's total exports stood at $259 million. This year, they set a target of $300 million by increasing production capacity -- adding 16 new lines, with another 14 lines currently under development. However, this plan may be impacted by the tariff hike, as the US accounts for half of Sparrow Group's total export market.

The exporter notes that the tariff hike may impact up to 20 per cent of demand on the US market as it could create inflationary pressure

Speaking to The Financial Express, BKMEA President Mohammad Hatem said he exports around $1.2 million worth of knitwear to the US annually. "Due to the recent 10-percent tariff hike, my buyers have asked me to share 5.0 per cent of the additional cost."

He adds adjusting this amount through profit margins would be difficult, and that the buyer has already withheld payment for those shipments.

"If tariffs increase further, we will no longer be able to do business with US buyers," he forewarns, noting that the buyer is now seeking lower-cost production facilities elsewhere -- although such a switch would take time.

Referring to SK Bashir Uddin, the BKMEA President said, "The Adviser informed me that talks are ongoing, and we are hopeful of reducing the tariffs."

According to data from the United States Trade Representative (USTR), bilateral trade between the US and Bangladesh came to $10.6 billion in 2024.

US goods imports from Bangladesh totalled $8.4 billion in 2024, of them $7.404 billion apparel imports from Bangladesh rose by 2.15 per cent.

On the other hand, US goods exports to Bangladesh stood at $2.2 billion, down 1.5 per cent of $34.0 million from 2023. The US goods-trade deficit with Bangladesh was $6.2 billion in 2024, reflecting a 2.0-percent increase ($123.2 million) from the previous year.​

 

[Saif]

US tariff negotiations enter final day

The talks between Bangladesh and the United States over tariff issues began in the US capital Washington for the third day on Friday.

www.newagebd.net

US tariff negotiations enter final day
Staff Correspondent 12 July, 2025, 00:32

The talks between Bangladesh and the United States over tariff issues began in the US capital Washington for the third day on Friday.

The talks started at 9:00am (Washington time) where Dhaka was trying to lower the tariff rate announced by US president Donald Trump, according to a message received in Dhaka.

On July 8, Trump imposed 35 per cent tariff on Bangladeshi export products, effective from August 1, on top of sectoral tariffs of up to 15 per cent.

Friday was the concluding day of the second round of negotiations between the two nations over the issue.

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

Economists and businesses said that the increased rate of tariff would reduce Bangladeshi exporters’ competiveness against their competitors in other countries.

Bangladesh has already assured the USTR of addressing the US concern over the trade deficit.

In 2024, Bangladesh exported to the US goods worth about $8.4 billion, of which $7.34 billion accounted for readymade garments. In the year, the country imported US goods worth $2.2 billion.

During the past two days’ negotiations, Dhaka said that measures had already been taken to reduce duties and value-added tax on certain products, including wheat, soya bean, aircraft and machinery, Bangladesh imported from the US.

Dhaka is also actively considering placing an order for buying Boeing aircraft soon.

On the second day of talks on July 10, the commerce adviser met with US trade representative ambassador Jamieson Greer at the latter’s office, according to a release issued by the chief adviser’s press wing.

The two dignitaries discussed issues of mutual interest with particular focus on Bangladesh-US trade, commerce, and the ongoing tariff negotiations.

National security adviser Khalilur Rahman and the chief adviser’s special assistant on ICT and telecommunications, Faiz Ahmed Tayeb, joined the meeting virtually from Dhaka.

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 pause on the tariff for three months.

After the announcement of the pause, Bangladesh had held the first round of negotiations with the US over the tariff rate.​