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

[Saif]

Time is running out for a deal with the US

Govt should have been better prepared and more proactive

www.thedailystar.net

Time is running out for a deal with the US
Govt should have been better prepared and more proactive

VISUAL: STAR

The concerns raised by trade experts and private-sector representatives regarding the interim government's handling of the US tariff negotiations are quite justified. At a roundtable organised by this daily, they expressed frustration over the government's poor preparation, lack of transparency, and minimal private-sector involvement in the trade talks with the US. They warned that a steep 35 percent tariff on Bangladeshi exports including garments to US markets—scheduled to come into effect from August 1—would have greater ramifications for the apparel sector and the wider economy than the government appears to realise. The lack of urgency displayed by it in the face of this enormous threat, and the limited progress made as time runs out to conclude the negotiations, has therefore placed our economic future in a precarious position.

Dhaka is now preparing for a third round of negotiations with the US, but it remains unclear when the talks will take place. While other countries, including our direct trade competitor Vietnam, have either already secured a favourable deal or made significant progress in that direction, Bangladesh still seems to lack any concrete plans. Until recently, the government kept the private sector largely at arm's length. And with very little time left before August 1, how much of the sector's input it can incorporate remains a major question. What the government should have done is establish both a steering committee and a working committee to ensure stakeholder inclusivity and proper preparation.

Moreover, inter-ministerial issues relating to the negotiations also appear to remain unresolved. At this stage, it is not even clear who exactly is leading the talks on Bangladesh's behalf. According to experts, the uncertainty surrounding a deal may prompt buyers to adopt a "wait and see" approach when considering orders from Bangladesh. This could leave businesses idle for several months. Small and medium-sized enterprises, in particular, will struggle to absorb such losses, potentially leading to factory closures and significant job losses.

The uncertainty triggered by the threat of harsher US tariffs will likely have spillover effects in other markets as well. Garment suppliers from other countries may also move quickly to capture European and other export markets, posing further risks to Bangladesh's market share.

Bangladesh, being heavily dependent on garment exports, has always been vulnerable to such external shocks. Despite repeated warnings, little has been done over the years to diversify the export basket, resolve longstanding structural bottlenecks, and enhance overall competitiveness. Given the current global trade landscape, experts believe Bangladesh now has no choice but to reduce trade and business costs through improved logistics and a more enabling business environment, while also boosting productivity through investments in technology and skills development.

However, such changes cannot be achieved overnight—they require consistent, long-term commitment. In the meantime, what the government must urgently do is bring all stakeholders on board and use all possible diplomatic and institutional channels to secure a win-win deal with the US.​

 

[Saif]

Govt plans to include private sector in US tariff talks

The government is considering bringing private sector representatives on board for upcoming tariff negotiations with the United States, as Bangladesh prepares to respond to the proposed tariff schedules by Sunday or Monday next week.

www.thedailystar.net

Govt plans to include private sector in US tariff talks
Move comes as third round of negotiations looms

The government is considering bringing private sector representatives on board for upcoming tariff negotiations with the United States, as Bangladesh prepares to respond to the proposed tariff schedules by Sunday or Monday next week.

The US Trade Representative (USTR), which leads trade talks for Washington, has already sent Bangladesh three detailed tariff schedules.

Bangladesh is currently reviewing the proposals and will send a response within the next couple of days, Commerce Secretary Mahbubur Rahman told The Daily Star yesterday over the phone.

"As the tariff issue includes multiple ministries, the commerce ministry has called an inter-ministerial meeting on Saturday to approve the agreed tariff lines submitted by the USTR," he said.

Rahman added that Bangladesh had agreed on most of the tariff issues but declined to elaborate, citing the non-disclosure agreement (NDA) signed by both sides before the talks began.

He also refrained from commenting on non-tariff matters that had been discussed, saying they too fall under the NDA.

However, the secretary said the ministry plans to involve private sector stakeholders in the negotiations. "We will be reaching out to business leaders from leading chambers and trade bodies," he said.

The commerce secretary did not disclose how many products the US had sought to be granted zero-duty access to the Bangladeshi market, but mentioned that the number is far lower than Bangladesh's total list of 7,446 tariff line items.

No new date has yet been set for the third round of talks, which is scheduled to take place in Washington before August 1, when the new import duties imposed by the Trump administration are due to take effect.

The commerce secretary said he would formally request the USTR to set a fresh date for the talks after Saturday's inter-ministerial meeting finalises Bangladesh's position on the zero-duty proposals.

Earlier this week, after returning from the second round of talks in the US, Commerce Adviser Sk Bashir Uddin and Mahbubur Rahman told a press conference that Bangladesh was preparing for the third round and that a team would fly to Washington next week.

However, the names of the delegation members have not yet been made public.

Meanwhile, economists and exporters are warning of serious repercussions for Bangladesh's economy due to the Trump administration's additional 35 percent reciprocal tariff on Bangladeshi goods.

They predict that overall US apparel imports could fall from nearly $80 billion last year to between $65 billion and $70 billion this year, as higher tariffs discourage sourcing from affected countries.

This could spell trouble for Bangladesh, especially its garment exports to the US, which may take a hit as American retailers and brands scale back their imports due to the steeper costs.

In contrast, the country's market competitors like Vietnam, India, and Indonesia have been hit with much lower rates, which may affect Bangladesh's garment share in the American market.

Bangladesh currently holds a 9.2 percent share of the US apparel market, making it the third-largest supplier after China and Vietnam. Last year, the country exported $8.2 billion worth of garments to the US.

Shovon Islam, managing director of Sparrow Group, which exports $350 million worth of garments a year—$150 million of which goes to the US—said his American buyers are already pressing him to cut prices, even though the final tariff rate is yet to be confirmed.

He said that he had to offer much lower prices to secure an order of one million shirts, as the buyer was considering shifting it to India, where tariffs are lower.

"Multinational clothing brands are also negotiating prices for goods meant for other markets like India and Japan, even though Bangladesh enjoys duty-free access there," Islam said.

"They think production in India is more cost-effective than in Bangladesh because of the lower tariff imposed on India by the Trump administration," he added. "I am deeply disappointed with the lack of progress demonstrated by the Bangladesh government."

"As a stakeholder and one of the largest exporters to the US market, I feel utterly helpless and frustrated," Islam commented.

Fazlee Shamim Ehsan, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said the commerce ministry had not yet communicated with them about including private sector representatives in the talks.

"Maybe the ministry will contact us later," he told The Daily Star yesterday.​

 

[Saif]

Millions of jobs may face wipeout

Bangladesh's export-led economy faces a potential employment crisis as the US prepares to impose a 35-percent countervailing tariff on imports from the country on August 1. Industry leaders warn that the impact will be widespread - threatening not just the readymade garment (RMG) sector but also

thefinancialexpress.com.bd

IMPENDING US TARIFF SHOCK TO BANGLADESH ECONOMY
Millions of jobs may face wipeout

Jasim Uddin
Published :
Jul 18, 2025 00:29
Updated :
Jul 18, 2025 00:29

Bangladesh's export-led economy faces a potential employment crisis as the US prepares to impose a 35-percent countervailing tariff on imports from the country on August 1.

Industry leaders warn that the impact will be widespread - threatening not just the readymade garment (RMG) sector but also related industries, such as leather, plastic, agriculture, logistics, and financial services.

As the countdown to August 1 begins, stakeholders fear that failing rapid and coordinated government action, Bangladesh could lose its competitive edge on the US market - a loss that could take years to recoup and cost millions of jobs.

"This is not just a trade issue, it's a national emergency," says Shovon Islam, managing director of Sparrow Group.

"If we think only our US-bound RMG exports will suffer, we are gravely mistaken. Buyers source from one country for multiple markets. The consequences will cascade."

Speaking on condition of anonymity, the country manager of a European apparel brand said, "If the tariff issue is not resolved in Bangladesh's favour, it could reduce our business opportunities here."

He also said, "Although the US market accounts for less than 10 per cent of our total sales, it would no longer be a viable business case for us to produce goods for them from Bangladesh. We may have to consider alternative sourcing options."

The RMG and textile sectors alone directly employ nearly 4.0 million workers, with another million jobs supported indirectly in the backward-linkage industries and support services.

If the tariff hike comes into effect and order volumes fall, industry insiders say, a million jobs could be lost within two months.

Sparrow Group, which employs 18,000 workers and pays over Tk 400 million in monthly wages, exports products worth around $300 million annually, and half of that are destined for the US.

"If this market collapses, we will not last more than two months," Islam forewarns.

Similarly, Asian Group, a leading Chattogram-based apparel exporter with nearly $340 million annual exports - 93 per cent of which go to the US - has expressed serious concern.

"If the government fails to secure a favourable arrangement, we may not survive," says its Executive Director Khondaker Belayet Hossain.

"We pay Tk 600 million in monthly wages, while the overall operating cost stands at Tk 700 million."

He also says he is worried about how he would manage in the coming days if the tariff issue does not end in Bangladesh's favour.

"One of our major buyers - US retail giant Walmart - has continued current orders but is uncertain about the next season. They are already evaluating the situation," Hossain notes.

He further says the entire industry is vulnerable and about 95 per cent of RMG-factory owners would not be able to pay workers beyond a month if the situation does not improve.

"We have failed to convey to the nation the true nature of RMG profitability. When we acquire new factories, it is not for immediate profit but to consolidate operations and reduce overheads," Hossain explains.

Major buyers like Walmart, Gap, Levi's, American Eagle, and C&A, whose combined annual sourcing from Bangladesh exceeds $5 billion, are already reconsidering future orders.

Several buying houses have asked factories to delay production and shipments until further notice.

Ha-Meem Group, Bangladesh's top RMG exporter, pays Tk 900 million in monthly wages to its employees.

Industry sources say up to 70,000 jobs at Ha-Meem alone could be at risk if exports slow down.

Data from the National Board of Revenue (NBR) show 2,377 Bangladeshi firms exported to the US in FY25.

Among them, 801 depend on the US for more than 50 per cent of their total exports, making them particularly vulnerable.

Collectively, these companies exported $6.62 billion worth of goods globally in FY25, with $5.05 billion - 58 per cent of Bangladesh's total exports - to the US.

Bangladesh exports nearly $10 billion worth of goods to the US annually, including leather, plastic, and agro items.

"If order volumes decline, the spill-over effect will ripple across spinning mills, dyeing units, accessory makers, transport operators, banks, and insurers," says Fazlee Shamim Ehsan, a member of the Bangladesh Employers' Federation executive committee.

Backward-linkage industries - such as spinning, dyeing, accessories, and chemicals - are heavily dependent on export volumes.

A reduction in the US-bound shipments would inevitably hurt their operations, leading to layoffs and financial strains, experts say.

Similarly, thousands of jobs in the domestic logistics and transport businesses - freight forwarding, clearing and forwarding (C&F) agents, and warehouse operators - are tied to the export- supply chain.

These businesses fear revenue losses if US buyers scale back orders or shift sourcing to alternative countries.

Financial services, such as export financing, trade insurance, and customs brokerage, too, are expected to come under pressure.

"Any disruption to trade volume affects our loan performance. Many exporters rely on back-to-back letters of credit (LCs) and factoring support, which will get strained if US orders shrink," says a senior official at a leading commercial bank.

Insurers are also bracing for a possible drop in marine and export-credit insurance premiums, with fewer goods being shipped abroad.

Meanwhile, local small and medium enterprises (SMEs) that supply to export factories fear they could be the first to face closures.

Despite being one of the largest sources of imports for the US, Bangladesh currently lacks preferential-market access.

In contrast, countries like Vietnam, India, and Sri Lanka have pursued strategic trade diplomacy by offering the US imports, such as liquefied natural gas (LNG) or cotton, in exchange for tariff relief.

"India, Vietnam, Indonesia, and others have negotiated effectively. We failed to present reciprocal offers," Sparrow Group's Islam observes.

"We have seen how Chinese exports to the US dropped by over $100 billion under the Trump-era tariffs. Bangladesh could face the same fate," he adds.

He has called for urgent high-level diplomatic interventions, suggesting economists and experienced business leaders be dispatched to Washington to negotiate a settlement before the tariff becomes effective.

On Tuesday, after a meeting with business leaders, BNP standing committee member Amir Khasru Mahmud Chowdhury urged the government to strengthen its negotiations with the US by involving businesses, political parties, and industry leaders.

"If not addressed properly, the tariff issue could severely impact our economy, employment, and exports," he said.

He warned that over $8 billion in exports and 1.5 million jobs are at risk, stressing that political consensus is essential on the matters of national interest.​

 

[Saif]

Negotiations dragging on over non-trade issues

Although there is consensus on trade-related matters, negotiations between Bangladesh and the United States are currently stalled over non-trade issues, including some sensitive topics. A Bangladeshi delegation is scheduled to travel to Washington next week for a third round of negotiations...

en.prothomalo.com

Bangladesh-US tariff talks
Negotiations dragging on over non-trade issues
Staff Correspondent Dhaka
Updated: 16 Jul 2025, 13: 57

Flags of Bangladesh and the US Prothom Alo illustration

Although there is consensus on trade-related matters, negotiations between Bangladesh and the United States are currently stalled over non-trade issues, including some sensitive topics.

A Bangladeshi delegation is scheduled to travel to Washington next week for a third round of negotiations after consultations with the interim government’s chief adviser and others.

This information was gathered from conversations with several business leaders. However, due to a non-disclosure agreement with the United States, government advisers and officials are not commenting publicly on the negotiations.

On 7 July, US President Donald Trump announced new tariff rates on imports from 14 countries, including Bangladesh, South Korea, and Japan. For Bangladeshi products, an additional tariff of 35 per cent was imposed. While the tariffs were initially scheduled to take effect from 9 July, implementation has been deferred to 1 August.

If successful negotiations take place within this period, the tariff rate may be lowered; otherwise, the rate declared by Donald Trump will go into effect. Notably, three months ago, the US had already imposed a 10 per cent counter tariff on imports from all countries.

A delegation led by Commerce Adviser Sheikh Bashir Uddin returned to the country last Sunday after holding discussions in Washington from 9 to 11 July.

The US wants to deepen its geopolitical and strategic involvement with Bangladesh, primarily to ensure that Bangladesh does not tilt too far toward China. Washington wants Dhaka to avoid significantly expanding trade relations with China or encouraging Chinese investment.

At a press conference last Monday, the adviser said, “Preparations are underway for the third phase of discussions with the United States. We’ve requested a timeframe from them. We are hopeful that Bangladesh, leveraging its capabilities, will be able to continue doing business in the US market, and the US will set a reasonable tariff level on Bangladeshi goods. Last week’s discussions with the US were encouraging and quite engaging.”

A business leader, requesting anonymity, told Prothom Alo that the discussions with the United States go beyond trade. The US wants to deepen its geopolitical and strategic involvement with Bangladesh, primarily to ensure that Bangladesh does not tilt too far toward China. Washington wants Dhaka to avoid significantly expanding trade relations with China or encouraging Chinese investment.

Sources confirm that among the conditions being discussed are clauses requiring Bangladesh to comply with any sanctions imposed by the United States. This means Bangladesh will have to refrain from trade, business, or investment activities with countries sanctioned by the US. Furthermore, there is a condition that goods granted duty-free access to Bangladesh from the US should not be offered similar benefits to any other country.

Another business leader, also speaking on condition of anonymity, said that the US wants Bangladesh to import military products from the United States and, in return, reduce its military procurement from China.

Another business leader, also speaking on condition of anonymity, said that the US wants Bangladesh to import military products from the United States and, in return, reduce its military procurement from China.

The United States is the single largest export destination for Bangladesh. In the fiscal year 2024–25, Bangladesh exported goods worth USD 8.69 billion to the US, which accounts for just over 18 per cent of the country’s total export earnings. More than 85 per cent of these exports were ready-made garments. Other major exports included caps, leather shoes, home textiles, and wigs.

When contacted, Commerce Secretary Mahbubur Rahman told Prothom Alo on Tuesday, “We’ve held a meeting with business leaders and economists and gathered their opinions. Another inter-ministerial meeting will be held soon to gather further input. Altogether, we are preparing thoroughly for the third phase of negotiations in the US We are optimistic that we can achieve the best possible outcome for the country before 1 August.”

Business leaders meet with BNP official

Meanwhile, on Tuesday afternoon, BNP Standing Committee Member Amir Khasru Mahmud Chowdhury met with leaders of various business organisations at a hotel in Banani, Dhaka, to discuss the US reciprocal tariffs.

Following the meeting, Amir Khasru Mahmud Chowdhury said that to strengthen negotiations over the imposed tariffs, it is essential to move forward with unified input from all stakeholders.

He said, “Discussions regarding the US-imposed reciprocal tariffs must be reinforced. The BNP will try to initiate dialogue with the government, where we will also present the business community’s concerns so that a coordinated approach can be developed.”

Business leaders attending the meeting included ICC Bangladesh President Mahbubur Rahman; former BTMA President Tapan Chowdhury; former FBCCI President A. K. Azad; BCI President Anwar-ul Alam Chowdhury Parvez; BGMEA President Mahmud Hasan Khan; BKMEA President Mohammad Hatem; MCCI President Kamran T. Rahman and Vice President Simin Rahman; LFMEAB President Syed Nasim Manzur; and Ahsan Khan Chowdhury, Chairman of Pran-RFL Group.

After the meeting, Mohammad Hatem told reporters, “The BNP invited us to this meeting. We told them that if there is anything they can do politically, they should take those steps. Nothing should be done that harms the country. If the counter tariff stays close to the levels imposed on India and Vietnam, we can maintain our competitiveness in that market.”​

 

[Saif]

BD set to bear highest duty among US trade partners

Bangladesh could face the highest effective tariff rate (ETR) among US trading partners-approximately 50 per cent -under the Trump tariff regime effective August 01, Fitch Ratings shows such duty disparities, released on July 18. The newly announced 35 per cent, outlined in formal letters from the

thefinancialexpress.com.bd

FITCH FINDINGS ON TRUMP TARIFF DISPARITIES
BD set to bear highest duty among US trade partners
Existing 15, new 35 aggregate to 50pc

Jasim Uddin Haroon
Published :
Jul 19, 2025 09:00
Updated :
Jul 19, 2025 09:00

Bangladesh could face the highest effective tariff rate (ETR) among US trading partners-approximately 50 per cent -under the Trump tariff regime effective August 01, Fitch Ratings shows such duty disparities, released on July 18.

The newly announced 35 per cent, outlined in formal letters from the US government, and the existing 15-percent duty on Bangladeshi exports to the American market aggregate to this steep figure.

Fitch's latest update to its U.S. Effective Tariff Rate (ETR) Monitor, an interactive tool tracking tariff developments, shows Bangladesh will bear the brunt of the new measures as it does not benefit from tariff exemptions or carve-outs offered to some other countries.

Meanwhile, as the countdown to the cutoff time for the unusual tariff hike progresses, Bangladesh is engrossed in finding response to US-set conditions deemed beyond trade and tariffs so Washington could rethink levying the ramped-up duty.

The global ratings agency has developed the interactive tariff tool to calculate the ETR on imports from US partners in trade and quantify current duties.

This calculation considers exclusion like "carveouts for oil and gas, copper, and pharmaceutical imports". This tool is updated whenever significant changes in US tariff policy occur.

In contrast, China's ETR remains unchanged at 41.4 per cent due to no revisions in its reciprocal tariff rate.

Meanwhile, the US ETR itself is set to rise to 19.4 per cent, up from 14.1 per cent, driven by increased reciprocal tariffs and the implementation of new duties on copper imports.

These changes align with the rates detailed in recent bilateral communications and announced trade arrangements.

Further upward pressure on the US ETR is anticipated if additional tariffs on semiconductors, electronic components, and pharmaceuticals-currently under section 232 investigation-take effect as expected on August 01. A scenario modeled by Fitch includes a 25-percent tariff on these imports, which would raise the overall ETR to approximately 23.7 per cent.

President Donald Trump has extended a pause on country-specific reciprocal tariffs announced in April but has sent letters to select countries outlining new rates ranging from 25 per cent to 50 per cent.

For the majority of countries not covered by these letters, the US will continue to impose a baseline tariff of 10 per cent.

However, Trump has indicated the possibility of introducing a blanket tariff of 10 per cent to 15 per cent on about 150 countries.

New bilateral trade deals with Vietnam and Indonesia were also announced, setting reciprocal tariffs at 20 per cent and 19 per cent respectively.

Among other notable changes, copper imports will now carry 50-percent duty, while Canada and Mexico face increased tariffs of 35 per cent and 30 per cent , raising their respective ETRs to 11.7 per cent and 13.1 per cent, up from 7.5 per cent and 9.5 per cent .

These projections assume that about half of previously tariff-free imports will be reclassified as compliant under the USMCA agreement.

In the case of the European Union, reciprocal tariffs are set to rise to 30 per cent from 20 per cent, resulting in varying ETRs for individual EU countries-ranging from 12 per cent to over 30 per cent-depending on their trade mix with the United States. ETR reflects the total duties paid as a percentage of total import value and varies based on changes in import composition and source countries.

Fitch's ETR Monitor provides sector-specific and country-specific breakdowns of import volumes and duties through 2025, covering key US trade partners, including China, the EU, Japan, Vietnam, Canada, and Mexico.

The interactive tool allows users to simulate different tariff scenarios by adjusting sectoral and country-specific rates and import volumes. It will be updated in real-time as major shifts in US trade policy unfold.​

 

[Saif]

Bangladesh considers tariff cuts on US imports

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

en.prothomalo.com

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

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

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

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

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

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

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

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

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

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

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

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

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

Meetings with US companies

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

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

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

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

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

 

[Saif]

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

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

thefinancialexpress.com.bd

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

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

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

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

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

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

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

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

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

 

[Saif]

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

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

thefinancialexpress.com.bd

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

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

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

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

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

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

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

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

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

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

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

 

[Saif]

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

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

en.prothomalo.com

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

Caption: Debapriya Bhattacharya, Distinguished Fellow, CPD Prothom Alo

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

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


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

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

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

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

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

Trump’s reciprocal tariffs won’t hold

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

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

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

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

 

[Saif]

We have started frantically looking for lobbyists: BGMEA president

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

en.prothomalo.com

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

BGMEA president Mahmud Hasan Khan Prothom Alo

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

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

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

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

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

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

 

[Saif]

Never saw such crisis in 40 years: AK Azad

AK Azad, managing director of Ha-Meem Group, said he has never seen such a crisis in export sector in his 40 years of business experience.

en.prothomalo.com

Never saw such crisis in 40 years: AK Azad
Staff Correspondent Dhaka
Published: 20 Jul 2025, 16: 17

AK Azad, managing director of Ha-Meem Group Prothom Alo

AK Azad, one of the country’s leading exporters, a prominent business leader, and the Managing Director of Ha-Meem Group, said he has never seen such a crisis in the export sector in his 40 years of business experience.

He said, “We businesspeople have brought this sector to a respectable position, but now we are disappointed and frustrated.”

Sharing his experience from a recent meeting with a brand partner, AK Azad said, “A major brand called me to their head office and informed me that they tried to understand the position of the Bangladesh government through their own government. Their comment was: ‘Your position is weak; no good outcomes are expected.’” This made AK Azad frustrated.

In response to the situation, AK Azad called several advisers. He said, all of them took the issue seriously. The next day, the commerce adviser called him and said that apparently, Azad’s actions created a stir, and everyone was now calling the commerce adviser.

AK Azad further said that the adviser told him 95 per cent of the issues had already been resolved. The remaining 5 per cent were being worked on with various ministries. What that businesspeople would do by joining various discussions. He argued that even if the government loses revenue of Tk 20-30 billion, the country would benefit more if there is an additional export of USD 5 billion. He believes that this initiative will succeed.

Given the current context, AK Azad highlighted the buyers’ positions, saying, “One of my buyers emailed me saying that if the tariff imposed on Bangladesh starting from 1 August is not lifted, I will have to bear 35 per cent of the tariff myself. The question is—how am I supposed to bear that cost?”

AK Azad cited his experience from Indonesia. He said, “I have a joint venture in Indonesia. There, the government and businesses work together. They appointed lobbyists and engaged in discussions at every level. But in Bangladesh, we did not get such an opportunity.”

On the topic of the interim government’s tenure, AK Azad said, “You are saying that you are in charge for seven or eight months, and then you will leave. But where will we go then? To whom are you handing us over?”

AK Azad added, “Everyone thinks that there is someone above us who will blow a whistle and all problems will vanish. Because of this belief, we are not being evaluated at all; there is no thought of appointing any lobbyists either.”

Yesterday, Saturday, the government announced that the USTR (Office of the United States Trade Representative) will not determine tariffs. That it will be decided by the Trump administration. Addressing the government, AK Azad said, “If you can, please try to act at that level.”

The government said that they have already started the process of appointing lobbyists and taking other necessary steps quickly. But AK Azad said, “At this point, we do not even know how far we can go or what can be achieved by appointing lobbyists. Bangladesh is going through such a difficult situation.”​

 

[Saif]

MoU signed for US wheat import amid tariff threats

Bangladesh on Sunday signed a memorandum of understanding with the United States to import 7 lakh tonnes of wheat annually for the next five years amid the threat of facing 35 per cent US tariff on its exports from the next month...

www.newagebd.net

MoU signed for US wheat import amid tariff threats
Staff Correspondent 21 July, 2025, 00:08

Food adviser Ali Imam Majumder, among others, poses for a photo after the signing of a memorandum of understanding with the United States for importing wheat at the ministry in Dhaka on Sunday. | Focus Bangla photo

Bangladesh on Sunday signed a memorandum of understanding with the United States to import 7 lakh tonnes of wheat annually for the next five years amid the threat of facing 35 per cent US tariff on its exports from the next month.

The US is pressing Bangladesh to reduce the trade gap, which is in favour of Bangladesh, by importing more US products to get a favourable tariff deal. Dhaka is negotiating with Washington for reducing the tariff rate to a tolerable level to safeguard its exports to the US market. Bangladesh is waiting for the third round of tariff talks with the US as the previous two rounds failed to resolve key issues, including the tariff rate.


The MoU was signed by Md Abul Hasanat Humayun Kabir, director general of the Food Department, and Joseph K Sower, vice-president of the US Wheat Association, in the capital Dhaka on Sunday.

Food adviser Ali Imam Majumder told New Age that the MoU was not a binding agreement.New age services

‘Still, the MoU will provide an opportunity for building trust and a wider area of mutual trade cooperation between Bangladesh and the US amid negotiations over tariff issues between the two trading partners,’ he said.

On July 8, US president Donald 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.

The country’s overall exports to the US were $8.4 billion in 2024, with the readymade garments accounting for $7.34 billion. In the year, the country imported US goods worth $2.2 billion.

The interim government is considering measures to increase imports from the US to reduce the trade gap, Ali Imam said.

He also said the price of wheat would be set later on the government-to-government negotiation.

Bangladesh imports wheat mainly from Russia, Ukraine, Canada, Brazil, Argentina, Australia, but shipments from Ukraine have decreased since the war with Russia began in 2022.

Bangladesh Bank data showed that the country imported wheat worth about $635.8 million in FY24.

Food ministry officials said that the proposed amount of wheat was about 10 per cent of the country’s annual demand of 70 lakh tonnes with private sector importers such as City Group, Meghna Group, Bashundhara Group, Nabil Group, Sheikh Brothers, and Sainik Group leading the wheat import amid growing demand.

Aminul Islam, managing director of Nabil Group, said that the local private wheat importers were shy of the US wheat market because of high content of protein and relatively high price.

He calculated that fright charge would be additional maximum $3 to $4 per tonne for importing wheat by the government from the US than the other markets.

In the fortnight ending May 9, export prices of the US (Soft Red Winter), the US (Hard Red Winter), Russian, and Ukrainian wheat decreased by 2.9 per cent, 3.1 per cent, 1.6 per cent and 0.8 per cent to $213 a tonne, $240 a tonne, $246 a tonne, and $248 a tonne respectively.

The domestic wheat production has almost halved over the past two decades as farmers shifted to more profitable crops like maize, potatoes, vegetables and boro rice.

In the current financial year of 2025-26, the government has planned to import 15 lakh tonnes of rice and wheat from global markets at an estimated cost of Tk 7,800 crore. It had imported 10.05 lakh tonnes of rice and wheat worth Tk 5,800 crore in the past financial year.

Of the proposed import from the international sources, rice will account for 9 lakh tonnes and wheat 6 lakh tonnes.

In 2023, Bangladesh imported wheat worth $823 million. It imported wheat mainly from Canada ($428m), Ukraine ($171m), Romania ($105m), Brazil ($50.7m) and Australia ($45.1m), according to the Observatory of Economic Complexity, an online data visualisation platform under the Massachusetts Institute of Technology.

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

 

[Saif]

Trump's tariff war and its adverse impact

Since Trump was inaugurated as president of the United States on January 20, 2025 he has implemented a series of actions which amount to a trade war against the rest of the world. On April 2, 2025 he announced so-called reciprocal tariffs with different levels for different countries. Right from th

thefinancialexpress.com.bd

Trump's tariff war and its adverse impact

Forrest Cookson
Published :
Jul 21, 2025 23:54
Updated :
Jul 21, 2025 23:54

Since Trump was inaugurated as president of the United States on January 20, 2025 he has implemented a series of actions which amount to a trade war against the rest of the world. On April 2, 2025 he announced so-called reciprocal tariffs with different levels for different countries. Right from the start he challenged the Most Favoured Nation (MFN) rule under which the tariff-setting country applied the same tariff level to every other country for each specific good. [Exceptions to this occur under FTAs.] Under Trump's approach the tariff level for the same commodity would depend upon the country of origin of the import. It undermined one of the most basic rules of international trade. Subsequently, Trump delayed the implementation of the reciprocal tariffs until July 9, 2025 to allow negotiations to take place between the United States (US) and other countries so as to adjust the initial value of the reciprocal tariff and other trade related items so an agreement might be reached with the US. Later the date was extended to August 1, 2025. In addition to this fundamental action Trump declared a minimum 10 per cent tariff on all imports into the US with a few exceptions. Different types of commodities had higher tariffs imposed; these included steel, aluminium, automobiles, automobiles spares, and more recently copper. Changes were made on the tariff rates from time to time on Canada and Mexico. Trump negotiated partial agreements with the UK, Vietnam, and another agreement with China scheduled to last 90 days. Details on all of these trade agreements were vague in nature

What was this all about? First Trump believes that the US is being badly treated as it runs a large trade deficit with the rest of the world, as well as deficits with almost every country. In Trump's view of economics the trade deficit is to the disadvantage of the US and he is determined to reduce the deficit to zero or even to achieve a surplus. One should remember that these decisions covered only trade in goods, omitting trade in services for which the US usually had a surplus.

How is it possible for the US to continuously run a trade deficit? Countries running a surplus with the US were content to accept dollars to cover the difference. In effect, the surplus country sent its goods to the US and accepted part of the payment in US government securities, cash, or deposits in the Federal Reserve Bank of New York. Countries were prepared to do this as they wanted to maintain reserves for emergencies. In such emergencies expenditures of dollars would be necessary to purchase commodities. In addition, individuals and companies may wish to hold their surplus funds in dollars rather than in local currency. During the past 80 years most of the foreign exchange transactions were made in dollars and a very large per cent of foreign trade was denominated in dollar prices. Both the US and other countries were content with the large trade deficit run by the US. In the international trading system, the US dollar became the standard unit of value in trade. Prior to 1972 the US dollar had been redeemable in gold so that a country holding US dollars could exchange these for gold. But in 1972 the US broke this link and everyone accepted the new situation that the dollar was an acceptable currency.

One of the consequences of the US trade deficit was that more of the production of goods that had been taking place in the US shifted to other countries. The goods the US required in excess of its exports had to come from somewhere, so other countries around the world constructed factories and sold goods replacing what had been previously been manufactured in the US. This resulted in considerable loss of jobs in the US and the destruction of many businesses. Large parts of the Midwest of the US, that had been the centre of manufacturing, were simply closed down and workers lost their jobs. This had a very serious effect on the American population which found itself unemployed or engaged in work that was less remunerative then before. This phenomenon Trump called the carnage of the US. In his inaugural address in 2017 his first term as president he describes the destruction of the American manufacturing sector, the loss of jobs and the destruction of communities that had been built around these factories. Much of his political support derives from persons who were adversely affected by the destruction of the American manufacturing sector. It is this line of thought that led him to believe that the destruction of the manufacturing sector must be reversed. To achieve this he is raising tariffs so that imported goods will be much more expensive and new factories can start up in the US to compete with the imports.

The greater the trade imbalance against the US, the higher the reciprocal tariff rates. This reciprocal tariff rate was meant to be an approximation of a tariff level that would reduce the US deficit to zero for that particular country. Of course in achieving this, rest of the world must abandon its wish to hold dollars. The world financial system was based upon the use of dollars combined with confidence that the legal system in the US would ensure that the holder of dollars would be able to change these into other currencies or to use them to purchase commodities. Furthermore countries which faced financial difficulties were often able to borrow dollars from the Federal Reserve to enable them to make the necessary economic adjustments to return to equilibrium. This system generally worked very well, even in the great financial crisis of 2008-9. The Federal Reserve was willing to extend the so-called swap lines to major central banks to ensure there was an adequate supply of dollars. If Mr. Trump were to be successful in closing the trade gap, there would be no flow of dollars to the rest of the world. Then the question of financial stability and trading currencies would be uncertain with a very negative effect on international trade. Furthermore, this reduction of exports from the rest of the world to the United States would reduce gross domestic product (GDP) and employment of nations other than the USA. World GDP would fall or grow more slowly. Employment demand in the US would rise but since already unemployment is low this would lead to higher wages and inflation in the USA. American GDP would decline as the efficiency of US manufacturing would be reduced.

Another objective of the Trump strategy is to weaken the trading relationships between China and other countries particularly in South and Southeast Asia. The Trump administration believes that it is in a protracted existential conflict with China with trade remaining an extremely important instrument. Weakening the Chinese economy is a clear objective of Trump's policies and one objective of his tariff strategy. This has important implications for Bangladesh and is taken up elsewhere.

One must realise that the Trump tariff war is dynamic and other countries or groups of countries will respond to the actions that Trump is taking. As other countries adjust tariffs and other trade conditions a new equilibrium for international trade will emerge. This equilibrium will be characterised by reduced world GDP as labour and capital will not be allocated in as optimal way as at present. Countries will introduce numerous rules and regulations that prevent labour and capital to be used in the best way instead national objectives will become more important and supporting enterprise through subsidy or other regulations will favour national companies reducing trade. How much will the world lose in output due to the misallocation that will arise from the trade wars now starting? It is impossible to make an accurate estimate of the extent of this loss but it should be of the order of 10 to 15 per cent.

For the US the Yale Budget Lab has made some estimates of the economic consequences of the tariffs. The estimates given here are as of the tariffs that had been announced up to July 11, 2025. Americans consumers will face an average effective tariff rate of about 18 per cent the highest rate since 1934. The price level in the US will increase by 1.9 per cent and in the average household income will fall $2500. Unemployment should increase about 0.4 per cent. Tariffs collected over a 10 year period would amount to $2.3 trillion. This compares to the expected tax reductions in the famous BBB Act of $3.9 trillion

The short run impact on the US price of wearing apparel would be an increase of 37.5 per cent. This would reduce the demand. In addition to this price effect the household income would fall particularly in lower levels (these households receive less food support and have to pay for more of their medical expenses). Altogether one expects a significant drop in demand for clothing in the United States as a result of these reciprocal tariffs.

The estimates of the impact of the Trump tariff changes daily as he adjusts or threatens to change tariff rates. The overall impact of the Trump tariff strategy will be to raise prices and lower household incomes in the US and also probably raise exports to other countries. The rest of the world will find its GDP lowered with the drop of sales to the US and probably prices also reduced. It is hard to know the ultimate outcome of the dynamic adjustments that will take place to all of these changes. But one can be certain that the allocation of labour and capital in all countries will reduce GDP. The effect on prices will ultimately depend on monetary policy. It should be noted that the stability of the world financial system will decline with the reduced supply of dollars while countries will be adjusting to how to maintain appropriate reserve levels in different currencies and the trading impact of the use of several currencies rather than the dollar.

The Trump tariff policy will have an adverse impact on virtually all countries especially the US.

Dr Forrest Cookson, economist.​

 

[Saif]

US tariff negotiation: Govt turns to the businessmen at the eleventh hour

After failing to bring any positive results in two rounds of talks, the government is now approaching exporters, businesses, and the private sector.

en.prothomalo.com

US tariff negotiation: Govt turns to the businessmen at the eleventh hour
Shuvonkar Karmokar Dhaka
Published: 21 Jul 2025, 12: 51

US President Donald Trump holds a signed executive order on tariffs on aluminum imports in the Oval Office of the White House in Washington on 10 FebruaryReuters

From the very beginning, the interim government did not involve the private sector, economists, or trade experts in the negotiations over reducing reciprocal tariffs imposed by the US.

As a result, exporters are not very confident about any progress regarding tariff reduction. They said that if the tariffs are not reduced, it is they who will ultimately suffer. Some US buyers have reportedly informed Bangladeshi exporters that the country is lagging far behind in the negotiations, which has created frustration among exporters over the government’s handling of the issue.

According to concerned businesspeople and exporters, after two and a half months of talks, it is now evident that competing countries are far ahead of Bangladesh. Yet, Bangladesh has only ten days left to negotiate a reduction in reciprocal tariffs. After failing to bring any positive results in two rounds of talks, the government is now approaching exporters, businesses, and the private sector.

It has been learned that the Ministry of Commerce is leading the negotiation with the Office of the US Trade Representative (USTR) on behalf of the Bangladesh government. After two meetings, the government has come to understand that USTR does not have the authority to reduce tariffs — only the Trump administration can do so.

Therefore, late last week, the government’s top level informally requested the private sector to do whatever is possible to convince the Trump administration, including hiring lobbyists. Business leaders had been urging the government to involve the private sector since April. They had even advised hiring lobbyists back then.

However, the government did not heed these suggestions. Instead, several top government officials had assured businesspeople that they could resolve the issue themselves and that there was no reason for concern.

Moreover, citing a non-disclosure agreement (NDA) signed with the US on 12 June, the government has not disclosed what was discussed, agreed upon, or disputed in the negotiations. Business leaders allege they were kept in the dark for a long time regarding the negotiations.

A top businessperson, requesting anonymity, said that last Saturday, Trade Adviser Sheikh Bashir Uddin advised the private sector to hire lobbyists and initiate talks with the Trump administration.

Despite two rounds of talks, no progress has been made in reducing the 35 per cent reciprocal tariff imposed on Bangladeshi products by the US In a letter dated 8 July, US President Donald Trump informed Chief Adviser Professor Muhammad Yunus that a new tariff rate would take effect from 1 August. If enforced, the average tariff on Bangladeshi exports to the US would rise to 50 per cent.

There are only ten days left before the new tariffs come into effect. A team led by Trade Adviser Sheikh Bashir Uddin is scheduled to visit the US for another round of talks. However, as of Sunday, the US had not provided any specific date for the discussion.

The United States is Bangladesh’s single largest export market. In the 2024–25 fiscal year, Bangladesh exported goods worth USD 8.69 billion to the US, accounting for just over 18 per cent of total national export earnings. Over 85 per cent of these exports were garment products, followed by caps, leather shoes, home textiles, wigs, and more.

At a roundtable organised by Prothom Alo yesterday, AK Azad, managing director of Ha-Meem Group, a leading garment exporter, said, “In my 40 years in the export business, I have never seen such a crisis. One of my major buyers told me that our negotiating position is weak. So, we cannot expect a favourable outcome.”

What the govt is doing

On 2 April, US President Donald Trump imposed reciprocal or reciprocal tariffs on imports from several countries. Tariffs were increased on products from 57 countries, with a 37 per cent additional tariff on Bangladeshi goods. On 9 April, Trump suspended these reciprocal tariffs for three months, although a minimum 10 per cent tariff remained in place on all countries.

Bangladesh delayed starting formal negotiations with the US over tariff reductions. The government also took time to consult relevant stakeholders such as trade researchers, exporters, and business leaders. Initially, the Ministry of Commerce was expected to lead the negotiations. However, individuals who could not take the discussions to a meaningful stage were instead involved early on.

The negotiations initially were led by chief adviser’s special envoy for international affairs, Lutfey Siddiqi, followed by National Security Adviser Khalilur Rahman. At a briefing on 5 April, Khalilur Rahman said, “This didn’t come out of the blue. We are prepared for it. We will take steps soon in consultation with the US administration.”

At the same briefing, Trade Adviser Sheikh Bashir Uddin said, “Given the structure of our industry and the maturity of our products, I think a door of great opportunity could open for Bangladesh.”

Following a meeting with USTR on 26 June, the national security adviser reported to the government that Bangladesh was ahead of other countries in the negotiations at that point.

From 9 to 11 July, another round of talks took place in Washington between Bangladesh and USTR. This time, the delegation was led by Trade Adviser Sheikh Bashir Uddin. After three days of discussions, the team returned without delivering any positive news. Citing the NDA, Bashir Uddin told the private sector that he could not disclose details of the talks.

Before the second round of talks with Bangladesh, the US on 8 July announced new tariff rates for 14 countries, including South Korea and Japan. Later, seven more countries were added to the list. After this, Bangladeshi exporters and business leaders attempted to meet with the chief adviser but failed.

Instead, they met with a four-member advisory committee. At that meeting, they informed the advisors that business leaders and experts had not been included in the tariff talks concerning this major export market, which had led to growing concerns among exporters.

Several business leaders noted that the US discussions are not limited to trade. The US wants to engage Bangladesh in broader geopolitical strategies, aiming to prevent it from leaning too far toward China. One of the conditions includes compliance with US sanctions imposed on other countries. Another stipulation reportedly requires that Bangladesh cannot offer the same tariff-free access to US goods that it might offer to other nations.

At Prothom Alo’s roundtable yesterday, Ananta Group Managing Director Sharif Zahir said, “We have failed diplomatically in the negotiations to reduce US reciprocal tariffs. However, we still have ten days. We should use every possible communication channel our head of government has with the US to make a final attempt.”

He added, “If the reciprocal tariffs are not reduced, our business will not survive more than six months. Over a million people will lose their jobs.”

No time to lose and hopes are fading

Meanwhile, after getting the green light from the government, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has started efforts to hire lobbyists. Last Saturday, BGMEA contacted two US firms — CGCN Group and Ballard Partners. One of the firms has already responded. BGMEA has also officially started involving the Policy Research Institute (PRI), a Bangladeshi think tank, in the negotiation process.

When contacted, BGMEA President Mahmud Hasan Khan told Prothom Alo yesterday, “Two days ago, we were informally asked by the top level of the government to hire lobbyists. So we started working. Last Saturday, we contacted two lobbying firms. But because this is a late move, finding a good lobbyist is proving difficult, as many are already working for other countries.”

Asked further, Mahmud Hasan Khan said, “We have only about ten days. It’s extremely difficult to hire lobbyists and achieve any positive outcome in such a short time. But we are trying nonetheless.”​

 

[Saif]

Bangladesh seeks 3rd-round tariff talks with US

With just days left before a 35 per cent reciprocal tariff by the United States on Bangladeshi exports takes effect, Bangladesh is pushing for a third round of negotiations.

www.newagebd.net

Bangladesh seeks 3rd-round tariff talks with US
Saddam Hossain 21 July, 2025, 21:19

With just days left before a 35 per cent reciprocal tariff by the United States on Bangladeshi exports takes effect, Bangladesh is pushing for a third round of negotiations.

According to the ministry of commerce, a formal proposal has been sent via email to the US counterpart on Monday at 7:30pm Bangladesh time, requesting a time slot for the next phase of dialogue.

Speaking to New Age, Mahbubur Rahman, secretary of the commerce ministry, said that when the US confirmed the slot, they were ready to sit for the third round of discussions.New age services

The second round of discussions, ended on July 11, failed to produce a consensus from either side regarding the tariff policy.

With the deadline fast approaching, Bangladesh is taking urgent steps to reopen talks in hopes of averting the potentially damaging duty hike.

‘We have submitted our position already and also finalised further proposals through inter-ministerial discussions on Sunday. After sending the proposals officially, we would wait for the US response,’ he added.

Regarding private sector involvement, he said that they had already encouraged them to engage in B2B-level discussions in parallel.

On Sunday, Bangladesh signed a memorandum of understanding with the US to import 7 lakh tonnes of wheat annually for the next five years, aiming to reduce trade gap amid the threat of facing a 35 per cent US tariff.

Mahbubur Rahman said that they urged businesses to discuss with wheat, cotton, soy, and other product-based associations in the US to increase imports.

‘We import those products from many countries and we urged the businesses to increase import from the US,’ he added.

Regarding the appointment of lobbyists, he stated that reciprocal tariffs were a global issue and that such matters could be resolved through negotiations and agreements, rather than through lobbying.

‘We urged our businesses to conduct B2B level discussion with the US counterpart while we would conduct G2G level discussion,’ he said, adding that such discussion would surely bring some results.

Business leaders expressed their frustrations over the past few weeks regarding the government’s sluggish pace in addressing the impending US tariff.

Despite competing nations successfully negotiating reductions, they underscored the glaring weaknesses in Bangladesh’s preparation.

Speaking to New Age, Mahmud Hasan Khan Babu, president of the Bangladesh Garment Manufacturers and Exporters Association, stated that the businesses were operating as usual.New age services

Regarding appointing lobbyists, he said that upon the unofficial approval from the government-end, they were trying to hire lobbyists to discuss with the Trump administration.

‘We discussed with several firms; however, it would be extremely tough to get an efficient firm as we have about 9 days in hands,’ he added.

However, they discussed this with the farms, hoping that if the Trump administration would extend the timeframe.

Trump administration slapped Bangladesh with a 35 per cent tariff on July 8, in a letter to the chief adviser.

Currently, Bangladeshi exporters enjoy a tariff of about 15 per cent in shipping their products to the US, the single largest export destination for Bangladesh.

With the imposition of the 35 per cent tariff, the total tariff would be 50 per cent, effective from August 1.

In 2024, Bangladesh exported approximately $8.4 billion in goods to the US, of which $7.34 billion, or about 88 per cent, accounted for readymade garments.

In 2024, US goods exports to Bangladesh were worth $2.2 billion, resulting in a trade deficit of $6.2 billion for the US.

According to the BGMEA data, 1,322 RMG operational factories under the trade body are associated with US exports.

On Sunday, AmCham president Syed Ershad Ahmed said that constructive dialogue on counter-tariffs could yield positive outcomes.

‘This is not unique to us, many countries face similar issues. As our capacity grows, our bargaining power in these discussions will also increase,’ he added.

He also said that his organisation had discussed importing cotton from the US and customs reforms with relevant stakeholders, including the Bangladesh Investment Development Authority.

Businesses expressed frustration with signing a non-disclosure agreement regarding the tariff, which the government used to exclude them from the discussion.

Meanwhile, a number of business leaders revealed that discussions with the US were not limited to trade alone; the US was also keen to engage with Bangladesh on geopolitical and strategic matters, with a primary objective of ensuring that Bangladesh would not lean too heavily toward China.

Moreover, new conditions were reportedly being set during these talks, such that if the US imposes sanctions on any country, Bangladesh would be required to comply with those sanctions as well.​

 

[Saif]

Bangladesh may get reduced tariffs on exports to USA: Finance Adviser

Finance Adviser Dr Salehuddin Ahmed on Wednesday expressed high hopes that Bangladesh will get a reduced tariff rate for exporting products to the USA. “We are hoping the tariff will be lowered for us,” he said while emerging from the weekly meeting of the Advisory Council Committee on

thefinancialexpress.com.bd

Bangladesh may get reduced tariffs on exports to USA: Finance Adviser

Published :
Jul 23, 2025 17:43
Updated :
Jul 23, 2025 17:43

Finance Adviser Dr Salehuddin Ahmed on Wednesday expressed high hopes that Bangladesh will get a reduced tariff rate for exporting products to the USA.

“We are hoping the tariff will be lowered for us,” he said while emerging from the weekly meeting of the Advisory Council Committee on Government Purchase (ACCGP) held at the Bangladesh Secretariat, UNB reports.

Bangladesh will import some other essential items from the USA, he said, adding, “We will import some other essential items, but will not divulge the items names right now.”

The Adviser also said Bangladesh’s trade deficit with the USA is very low, like USD 6.5-6.7 billion.

Talking about the decision to import wheat from the USA, he said the government wants to rationalise the sourcing of wheat as part of increasing trade volume with the USA. “We have experienced uncertainty from the Russian and Ukraine blocks from where we usually bought wheat, there are problems in the black sea.”

He mentioned that negotiations with the USA are still on for the tariff lowering.

Regarding the price of wheat import from the USA market, Dr Salehuddin denied making any comment. “The protein level is a little bit higher in the wheat, but not very much higher, the impurity is much lower.”

He, however, admitted the price hike for this wheat import from the USA market. “But we will get some advantages and we need to import something for negotiation.”

Dr Salehuddin also mentioned that this import will be helpful to reduce the trade deficit.

The Finance Adviser said the Commerce Adviser will go to the USA shortly before August 1, the day to impose enhanced tariff rates for Bangladesh. “He will have meetings with the USTR; I am also talking through my channel.”

Dr Salehuddin said engaging lobbyists would not bring any positive result at this stage when the decisions are coming out very quickly.

Responding to a query to engage business people for this negotiation, Dr Salehuddin said that the business people will not get access in negotiation meetings. “They will have to make noise outside the meeting, that will not make any difference,” he added.

The adviser mentioned that it is true that the US private sector is very much important. “I have talked to the US Chamber, they have a good impression of Bangladesh,” he said.

US President Donald Trump on July 7 sent a letter to Chief Adviser Prof Muhammad Yunus imposing a tariff of 35% on products imported from Bangladesh.

In his letter, Trump cited a ‘longstanding and very persistent’ trade deficit between the two countries.

"It is a Great Honour for me to send you this letter in that it demonstrates the strength and commitment of our Trading Relationship, and the fact that the United States of America has agreed to continue working with Bangladesh, despite having a significant Trade Deficit with your great Country."

"Nevertheless, we have decided to move forward with you, but only with a more balanced, and fair, TRADE. Therefore, we invite you to participate in the extraordinary Economy of the United States, the Number One Market in the World, by far," the letter reads.

Trump also said, "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. Our relationship has been, unfortunately, not Reciprocal."

Trump's new 35% tariff announced for Bangladesh is 2% lower than the initial rate announced three months ago, but significantly higher than its close rival Vietnam (in the field of RMG), which recently secured a trade deal with the US under which its goods will be charged a tariff of 20%.​

 

[Saif]

Bangladesh proposes dates, awaits US nod

Bangladesh proposed to hold the third and final round of reciprocal tariff talks with the United States Trade Representatives on any day from Sunday onwards and is waiting for the US response, according to commerce ministry officials...

www.newagebd.net

THIRD-ROUND OF TARIFF TALKS
Bangladesh proposes dates, awaits US nod
Saddam Hossain 23 July, 2025, 22:45

Bangladesh proposed to hold the third and final round of reciprocal tariff talks with the United States Trade Representatives on any day from Sunday onwards and is waiting for the US response, according to commerce ministry officials.

Trump administration slapped Bangladesh with a 35 per cent tariff on July 8, effective from August 1, in a letter to the chief adviser.

The commerce ministry officials also stated that they had sent an official email on Tuesday evening (approximately 7:30pm Bangladesh time), requesting a specific date from the US counterpart.

Speaking to New Age, Mahbubur Rahman, secretary of the Ministry of Commerce, stated that they submitted their position paper to the USTR. New age services

‘We have sent our position paper in response to the draft agreement and we have requested them to schedule the next meeting within the coming week, any day from Sunday (July 26) onwards,’ he added.

He also stated that if they confirm the meeting schedule, the commerce ministry would proceed accordingly.

‘If the USTR confirms date, a delegation led by commerce adviser Sheikh Bashir Uddin will leave for Washington,’ he added, saying that some new faces would also be included in the delegation along with previous ones.

Regarding the queries on the clauses of the position papers, he said that, as it was a non-disclosure agreement, they couldn’t disclose anything at this time.

However, commerce ministry officials stated that Dhaka has proposed concessions, including duty relief and increased imports.

They said that they would not accept any ‘non-trade conditions’ as part of the agreement.

Meanwhile, a number of business leaders revealed earlier that those discussions with the US were not limited to trade alone; rather the US was also keen to engage with Bangladesh on geopolitical and strategic matters.

Moreover, new conditions were reportedly being set during these talks, such as, if the US imposes sanctions on any country, Bangladesh would be required to comply with those sanctions as well.

The delegation planning for the final round of tariff talks included commerce adviser Sheikh Bashir Uddin, national security adviser Khalilur Rahman, chief adviser›s special assistant Faiz Ahmad Taiyeb, commerce secretary Mahbubur Rahman, and several other officials.

The second round of discussions ended on July 11, but failed to produce a consensus from either side regarding the tariff policy.

With the deadline fast approaching, Bangladesh is taking urgent steps to reopen talks in hopes of averting the potentially damaging duty hike.

Commerce secretary also said that USTR officials are currently preparing for trade negotiations with multiple countries, leaving it tough to fix a date at this moment. For this reason, they sought any date in the next week as per the US convenience.

Ministry officials stated that during the previous round of tariff talks, approximately 30-35 officials from the US side participated, while Bangladesh had three or four.

They also stated that Bangladesh’s position paper outlined its commitments to reducing the trade gap between the two countries by increasing imports and outlined non-trade obligations, which they believed were non-harmful.

As part of efforts to reduce the trade deficit, on Sunday, Bangladesh signed a memorandum of understanding with the US to import 7 lakh tonnes of wheat annually for the next five years.

On Wednesday, the interim government decided to procure 2.20 lakh tonnes of wheat from the United States at $302.75 per tonne a bid to avert a high US tariff on Bangladeshi goods.

Meanwhile, business leaders expressed their frustrations over the past few weeks regarding the government’s sluggish pace in addressing the impending US tariff.

Despite competing nations successfully negotiating reductions, they underscored the glaring weaknesses in Bangladesh’s preparation.

Speaking to New Age on Monday, Mahmud Hasan Khan Babu, president of the Bangladesh Garment Manufacturers and Exporters Association, expressed hope that the Trump administration might extend the timeframe.New age services

Currently, Bangladeshi exporters enjoy a tariff of about 15 per cent in shipping their products to the US, the single largest export destination for Bangladesh.​

 

[Saif]

Tariff Standoff: Dhaka-Washington high-stakes virtual talks on 29 July

Bangladesh and the United States are set to hold a crucial virtual meeting on 29 July to discuss Washington’s recent decision to impose a 35 per cent reciprocal tariff on selected Bangladeshi exports—just two days ahead of the scheduled implementation date on 1 August. Commerce Adviser

thefinancialexpress.com.bd

Tariff Standoff: Dhaka-Washington high-stakes virtual talks on 29 July

FE Online Report
Published :
Jul 24, 2025 20:06
Updated :
Jul 24, 2025 20:06

Bangladesh and the United States are set to hold a crucial virtual meeting on 29 July to discuss Washington’s recent decision to impose a 35 per cent reciprocal tariff on selected Bangladeshi exports—just two days ahead of the scheduled implementation date on 1 August.

Commerce Adviser Sk Bashir Uddin confirmed this during a media briefing at the Ministry of Commerce on Thursday, describing it as a key part of ongoing negotiations to avert the impending trade setback.

“We have a virtual meeting scheduled with the US on 29 July. Based on the outcome, we will determine our next course of action,” Commerce Secretary Md Mahbubur Rahman told The Financial Express.

“The meeting will be held at 10 pm Bangladesh local time,” he said.

Adviser Bashir Uddin also made it clear that the government has not engaged any lobbyist for this purpose.

The Ministry of Commerce earlier sought a third round of direct dialogue with the United States but has yet to receive a confirmed date for an in-person meeting. In the meantime, the government is focusing on the virtual engagement as a strategic opening to assert Bangladesh’s position.

“We sent a letter to the US Secretary of Commerce just two days ago, outlining our concerns and expectations. We’re now awaiting a response and an official invitation for a physical meeting. Once received, our team is ready to engage,” said the adviser.

When asked about the urgency, given the looming 1 August deadline, he said, “The issue is as critical for the US as it is for us. Our approach has been proactive and well-coordinated. We’ve clearly presented our stance and are prepared to take all necessary steps within our capacity.”

On expectations from the upcoming talks, he added, “We are hopeful for a positive outcome. We’ve conveyed our position effectively and expect a constructive response.”

Responding to speculation that lobbyists might be involved on behalf of the private sector, the adviser clarified, “That’s entirely a matter for the business community. The government has not appointed any lobbyist. Besides, the US has invoked a national emergency provision in this matter, which limits the scope for any lobbyist intervention.”

He further noted the legal and bureaucratic complexity of Bangladesh’s position in this matter, stating, “There are intricate inter-ministerial legal processes involved, which a foreign lobbyist may not fully grasp. Over the past 15 days, nearly every relevant ministry has worked together around the clock. We are fully aligned and prepared for it.”

Addressing concerns circulating on social media that Bangladesh may have compromised its interest in favour of the US, Bashir Uddin said, “I have no comment on baseless claims. Like you, I am a Bangladeshi. Why would I work against my own country? If that were true, there would be no need for inter-ministerial coordination or all this effort. These claims are entirely unfounded.”

Asked about the contingency plan if there is no response before the deadline, the adviser said, “We remain optimistic that we will receive a schedule and proceed accordingly.”​