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

[Saif]

Form a task force for fairer trade talks with US: ICCB

The chamber held its 30th annual council in Dhaka

www.thedailystar.net

Form a task force for fairer trade talks with US: ICCB
The chamber held its 30th annual council in Dhaka

The government should form a task force under the commerce ministry to negotiate fairer trade terms with the Trump administration and ensure continuity of access for Bangladesh's exports to the American market, the International Chamber of Commerce–Bangladesh (ICCB) said today.

The suggestion comes as the government is set to resume the third and final round of tariff negotiations with the United States Trade Representative on July 29, in its efforts to secure a much lower tariff than the 35 percent expected to take effect from August 1, unless a deal is reached.

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The proposed tariff on Bangladesh's exports to the US could severely affect garment exports and jobs, the ICCB said in a statement following its 30th annual council held in Dhaka.

ICCB President Mahbubur Rahman presented a comprehensive report on the evolving global and national economic landscape and its implications for Bangladesh.

The ICCB said the global backdrop remains unstable—marked by the Red Sea crisis, ongoing wars in Ukraine and the Middle East, and a resurgence of economic nationalism, especially following the return of Donald Trump to the US presidency.

Inflationary pressures and protectionist policies risk fragmenting global supply chains—an alarming trend for developing economies like Bangladesh.

"In this context, Bangladesh's economy faces significant headwinds," it said.

"A major concern is the fragile state of Bangladesh's financial sector," said the ICCB, citing high default loans, which rose to roughly one-fourth of the total outstanding loans in March 2025.

The ICCB council also highlighted several key challenges, including energy security and fiscal pressure.

It said rising costs from increased reliance on imported fossil fuels and currency depreciation require urgent domestic exploration and investment in renewables.

With a tax-to-GDP ratio below 10 percent, revenue mobilisation remains weak.

"The restructuring of the National Board of Revenue is expected to improve efficiency and fiscal space."

The chamber said Bangladesh faces serious risks from floods, droughts, and salinity intrusion due to climate change.

Moreover, foreign direct investment remains far below regional peers such as Vietnam.

"Export reliance on garments must be reduced by promoting sectors like pharmaceuticals, agro-processing, and IT."

The ICCB urged swift action to strengthen national cybersecurity infrastructure and regulation.

The chamber also addressed the implications of Bangladesh's planned graduation from least developed country status by November 2026.

The country risks facing tariffs of up to 11.5 percent in major markets such as the European Union and the UK, the chamber said, emphasizing the importance of a transition strategy to safeguard export competitiveness and maintain foreign investment flows.

High Commissioner of Brunei Darussalam Haji Haris Bin Haji Othman, Ambassador of Myanmar U Kyaw Soe Moe, Chargé d'Affaires of Argentina Maximiliano Romanello, and Senior Economic Officer of the Asian Development Bank Barun Kumar Dey attended the council meeting as special guests.​

 

[Saif]

Govt delegation to visit US Monday for 3rd round of tariff talks

A delegation from the Bangladesh side is expected to visit the USA tomorrow (Monday) to resume the third round of negotiations with the United States Trade Representative (USTR) to reduce the jacked-up tariff slapped on products exported to the US market from Bangladesh. Third round meeting on tar

thefinancialexpress.com.bd

Govt delegation to visit US Monday for 3rd round of tariff talks

FE ONLINE REPORT
Published :
Jul 27, 2025 14:10
Updated :
Jul 27, 2025 16:10

A delegation from the Bangladesh side is expected to visit the USA tomorrow (Monday) to resume the third round of negotiations with the United States Trade Representative (USTR) to reduce the jacked-up tariff slapped on products exported to the US market from Bangladesh.

Third round meeting on tariff imposed by the US is expected to be held on July 29-30 in Washington DC, US.

Commerce Secretary Mahbubur Rahman told reporters on Sunday at his secretariat office.

National Security adviser, commerce adviser, commerce secretary and additional secretary of the commerce ministry will leave Dhaka for the US tomorrow afternoon.​

 

[Saif]

ADB warns US tariffs could reduce Bangladesh's GDP growth

The Asian Development Bank (ADB) has warned that Bangladesh's GDP growth could be negatively affected by the United States’ proposed 35 per cent retaliatory tariff. The bank said the growth forecast for the fiscal year (2025–26) has been revised downward, mainly due to a slowdown in th

thefinancialexpress.com.bd

ADB warns US tariffs could reduce Bangladesh's GDP growth

FE ONLINE DESK
Published :
Jul 27, 2025 13:08
Updated :
Jul 27, 2025 13:08

The Asian Development Bank (ADB) has warned that Bangladesh's GDP growth could be negatively affected by the United States’ proposed 35 per cent retaliatory tariff.

The bank said the growth forecast for the fiscal year (2025–26) has been revised downward, mainly due to a slowdown in the export and industrial sectors, as well as the potential effects of the US tariffs. However, the ADB did not specify a projected growth rate.

The concern was raised in the July edition of the Asian Development Outlook.

The tariff, set to take effect on August 1, poses risks particularly to Bangladesh’s garment sector and labour market, according to S&P Global.

Further discussions between Bangladesh and the United States Trade Representative (USTR) are scheduled for July 29 in an attempt to negotiate a reduction in the proposed tariff.

Despite these concerns, the US-based credit rating agency has maintained Bangladesh’s credit outlook as “stable.”

On Thursday (July 24), the agency released a report maintaining Bangladesh’s long-term sovereign credit rating at 'B+' and the short-term rating at 'B'.

The agency also noted that the upcoming national election in 2026 could be a pivotal moment in shaping the country's economic trajectory.​

 

[Saif]

Bangladesh to purchase 25 Boeing aircraft from the US

As part of negotiations over the reciprocal tariffs, Bangladesh has decided to purchase 25 aircrafts from the US aviation company Boeing.

en.prothomalo.com

Reciprocal tariffs
Bangladesh to purchase 25 Boeing aircraft from the US

Staff Correspondent Dhaka
Updated: 27 Jul 2025, 18: 29

Boeing aircraft Courtesy of Bangladesh Biman

As part of negotiations over the reciprocal tariffs, Bangladesh has decided to purchase 25 aircraft from the US aviation company Boeing. Some of these aircraft are expected to be delivered within the next one to two years.

Bangladesh took the decision to purchase the aircrafts as part of the ongoing trade talks with the United States regarding reciprocal-tariff. Commerce Secretary Mahbubur Rahman shared this information with journalists today, Sunday, at the Secretariat.

Mahbubur Rahman added that a delegation from Bangladesh will leave for the United States tomorrow, Monday to hold renewed discussions on the issue of reciprocal tariffs.

A meeting with the US side is scheduled for the day after tomorrow. Apart from the decision to purchase aircraft, another contract has been finalised to import wheat from the United States, he confirmed.

Speaking to journalists, the commerce secretary said, “After receiving the draft of the tariff agreement, we have worked on it several times. In addition to online talks, there have been two rounds of direct discussions in Washington. Following meetings with ministries concerned and stakeholders, we conveyed our final position to the United States on 23 July. Afterwards, we requested them for a fresh meeting date.”

Mahbubur Rahman noted that in response to this request, the office of the United States Trade Representative (USTR) has scheduled in-person meetings on 29 and 30 July. Bangladesh’s delegation to the talks will include the commerce adviser, security adviser, and the commerce secretary.

The commerce secretary added, “There might be another meeting there on 31 July. The Bangladeshi delegation will depart for the US tomorrow evening. Since discussions with the US are ongoing, we believe the outcome regarding tariffs will likely be announced by the deadline of 1 August.”

When asked about the purchase of Boeing aircraft, Mahbubur Rahman clarified, “The business of Boeing aircraft is not run by the US government, rather it is run by the Boeing Company. Bangladesh has placed a purchase order for a total of 25 Boeing aircraft. Other countries have also made similar orders. For example, India and Vietnam each have ordered 100 aircraft while Indonesia has ordered 50.”

He added, “Now, Boeing will deliver according to its production capacity. It will take long to receive the ordered aircraft. The company will supply aircraft either in the serial the orders were placed or based on their business policies. Bangladesh needs several Boeings urgently. A few aircraft may be delivered within the next one or two years.”

Highlighting the need to expand Biman Bangladesh Airlines’ fleet, the commerce secretary further stated, “The government has had this plan for quite some time now. Initially, there was an order for 14 Boeing aircraft. With the reciprocal tariff issue, that number has now been increased to 25.”

Speaking on the topic of importing wheat from the US, Mahbubur Rahman stated that around nine million (90 lakh) tonnes of wheat are imported annually in the country both by the public and private sectors. And, a deal to import wheat from the US has been finalised now.

In addition, initiatives have been taken to import soybeans and cotton in the private sector. Business representatives will be sitting with US companies to discuss soybean imports. Talks regarding cotton imports have already reached the final stage, he added.

The commerce secretary noted that the United States currently has an overall trade deficit of USD 1.3 trillion with countries around the world. He said their aim is to reduce this deficit, which is why they have imposed the reciprocal tariffs.​

 

[Saif]

Tariff talks: Positive outcome a must for Bangladesh

As Bangladesh braces for the third round of negotiations with the United States, starting from today (Tuesday), the stakes have never been higher. The escalating tariff crisis, triggered by the Trump administration's decision to impose a nearly 50 per cent reciprocal tariff on Bangladeshi exports -

thefinancialexpress.com.bd

Tariff talks: Positive outcome a must for Bangladesh

Mir Mostafizur Rahaman
Published :
Jul 29, 2025 00:21
Updated :
Jul 29, 2025 00:21

As Bangladesh braces for the third round of negotiations with the United States, starting from today (Tuesday), the stakes have never been higher. The escalating tariff crisis, triggered by the Trump administration's decision to impose a nearly 50 per cent reciprocal tariff on Bangladeshi exports -- primarily ready-made garments and leather goods -- has rattled the foundations of the country's trade-based economy. For Bangladesh, this is not merely a trade dispute but a litmus test of its diplomatic acumen, trade resilience, and long-term economic strategy.

The first two rounds of talks failed to produce tangible outcomes, leaving exporters, businesses, and policy circles disillusioned and frustrated. Many economists and business leaders have begun to publicly criticise the government's negotiation strategy, calling it inadequate in the face of mounting economic pressure. Against this tense backdrop, the latest round of negotiations offers a glimmer of hope. But expectations are now tempered by urgency.

If the U.S. proceeds with enforcing a 50 per cent tariff on Bangladeshi goods starting August 1 -- as declared in a formal letter from President Donald Trump to Chief Adviser Dr. Muhammad Yunus -- the consequences could be economically catastrophic. The ready-made garment (RMG) and leather sectors, which collectively constitute the lion's share of Bangladesh's export earnings and employ millions, will be hit the hardest. A sharp rise in prices would diminish their competitiveness in the U.S. market, which is currently one of Bangladesh's largest export destinations.

Moreover, such a tariff spike would inevitably cause order cancellations, job losses, factory shutdowns, and potential labor unrest. In an export-driven economy where garments alone account for over 80 per cent of total export revenue, even a marginal disruption sends shockwaves across the macroeconomic spectrum. A 50 per cent tariff is not just a trade policy -- it is a threat to social stability.

Given this context, the ongoing negotiations is not simply another round of routine diplomatic engagement. It represents a high-stakes attempt to avert a crisis that could derail years of economic progress. If the U.S. agrees to scale back the proposed tariff to 18-20 per cent -- a figure that is being circulated as a possible compromise -- it would be seen as a major diplomatic victory for Bangladesh.

More importantly, such a reduction would provide breathing space for exporters and restore investor confidence. In a volatile global market, predictability and policy stability matter as much as price. A successful negotiation outcome would reaffirm Bangladesh's relevance and reliability in international trade partnerships.

While blame games are counterproductive, it is important to assess why the first two rounds failed to yield results. One factor is timing. The U.S. side, citing national emergency clauses, adopted a unilateral tone from the outset. Their decision was framed as a part of a broader recalibration of trade ties with countries perceived to be benefitting disproportionately. This created an uneven playing field for Bangladesh.

Another challenge has been the lack of clarity and strategic communication on Bangladesh's part. Critics argue that the government failed to present a cohesive, data-driven, and forward-looking case in the initial stages. Moreover, the absence of a robust lobbying effort in Washington -- unlike other trade-dependent nations -- meant that Bangladesh's narrative was underrepresented in U.S. policy circles.

To its credit, the interim government has not remained passive. Recognising the threat posed by the tariffs, Bangladesh has launched a flurry of diplomatic and commercial initiatives aimed at addressing American concerns and reducing the bilateral trade deficit.

One of the key measures has been a proactive shift in import policy. Bangladesh has initiated plans to purchase wheat, soybean, and cotton from the U.S., along with a major procurement plan involving 25 aircraft from Boeing. These steps are expected to narrow the trade imbalance while also creating goodwill in Washington's political economy.

Additionally, 600 acres of land have been allocated in the Mirsarai Economic Zone for the storage and maintenance of imported cotton -- signalling the seriousness of Bangladesh's commitment to long-term trade reciprocity.

These strategic decisions mark a clear pivot towards rebalancing the relationship and demonstrate that Bangladesh is willing to play by global rules -- provided the playing field is plain and fair.

However, trade balances are not the only issue on the table. One of the major stumbling blocks in the negotiations has been the United States' insistence on stronger protection of Intellectual Property Rights (IPR). The U.S. has accused Bangladesh of failing to curb the circulation of counterfeit goods across a range of sectors, including garments, pharmaceuticals, consumer electronics, and software.

Although Bangladesh is already a signatory to global frameworks such as the TRIPS Agreement, the Paris Convention, and the WIPO arrangements, the U.S. maintains that enforcement remains weak and inconsistent. To address these concerns, Washington has demanded that Bangladesh sign 13 additional international treaties and conventions, along with enforcing 11 new policy commitments -- ranging from legal protection for U.S. goods to stricter anti-counterfeiting regulations.

This presents a complex challenge. On one hand, it is crucial for Bangladesh to align with global standards and protect IPR to attract high-value foreign investment. On the other hand, the legal and administrative overhaul required to meet U.S. demands is neither simple nor immediate. IPR reform involves changes in domestic legislation, regulatory infrastructure, and inter-ministerial coordination -- all of which take time and political consensus.

Given this multilayered backdrop, what can Bangladesh realistically expect from the third round of negotiations?

First, it is unlikely that the U.S. will revoke the tariff decision entirely before August 1. However, there is a plausible path toward a phased reduction or temporary relief -- especially if Bangladesh can present a credible roadmap to address IPR concerns and continue rebalancing bilateral trade.

Second, the government must adopt a more comprehensive negotiation strategy. This includes assembling a high-powered delegation of trade, legal, and diplomatic experts who can respond convincingly to technical queries. Emotional appeals or vague promises will no longer suffice.

Third, a concrete and transparent action plan must be shared with U.S. negotiators -- one that outlines a timeline for treaty ratification, legal reforms, and anti-counterfeiting enforcement. Even partial commitments, if sincere and time-bound, can help restore trust.

Finally, Bangladesh must improve its communication efforts -- not just with U.S. policymakers, but also with the global business community. A coordinated outreach campaign showcasing the country's reform agenda, investment opportunities, and commitment to fair trade could shift perceptions and attract allies.

The latest round of negotiations will be a defining moment in the evolution of Bangladesh-U.S. trade relations. A successful outcome could stabilise export earnings, protect millions of jobs, and reposition Bangladesh as a responsible player in global trade. Failure, on the other hand, could lead to serious economic disruptions and dent the credibility of the country's diplomatic machinery.

While the road ahead is undoubtedly steep, it is not insurmountable. Bangladesh must stay focused, engage constructively, and act decisively. The world is watching -- not just for how the tariff dispute is resolved, but for how Bangladesh navigates this complex intersection of trade, diplomacy, and economic policy.

This is more than a negotiation. It is a defining test of national capacity, and one that Bangladesh must pass -- not just for the present, but for the promise of its economic future.​

 

[Saif]

What's in store for US-BD final round of tariff talks?

A Bangladesh trade mission, as reported, is scheduled to meet for the third time with the Office of the United States Trade Representative (USTR) in Washington, D.C., on July 29 and July 30 to see if the 35 per cent reciprocal tariff that the Trump administration has imposed on Bangladesh's exports

thefinancialexpress.com.bd

What's in store for US-BD final round of tariff talks?

SYED FATTAHUL ALIM
Published :
Jul 29, 2025 00:17
Updated :
Jul 29, 2025 00:17

A Bangladesh trade mission, as reported, is scheduled to meet for the third time with the Office of the United States Trade Representative (USTR) in Washington, D.C., on July 29 and July 30 to see if the 35 per cent reciprocal tariff that the Trump administration has imposed on Bangladesh's exports to the US market could be lowered. There is the possibility of holding yet another round of meeting with the USTR on July 31.The US reciprocal tariff rate is set to take effect on August1. So, it is going to be a hectic last minute effort on the part of the Bangladesh trade delegation led by Commerce Adviser along with the National Security Adviser and comprising the commerce secretary and additional commerce secretary as its members. Notably, Bangladesh trade team has, meanwhile, finished two rounds of talks with the USTR following US president Donald Trump's July 8 letter to Bangladesh's Chief Adviser Dr Muhammad Yunus about the imposition of reciprocal tariff at the rate of 37 per cent on Bangladeshi exports to America. With no further reassurance from the USTR during those two rounds of trade talks, except for an exemption of just 2 per cent from original reciprocal tariff so imposed, Bangladesh is trying its luck for the third time. Best of luck! But when added to the currently existing duty at 15per cent on the entry of Bangladesh-origin products, especially Readymade Garment (RMG), into the US market, the total tariff will come to 50 per cent after August 1.

In response, Bangladesh sent its position paper on July 22 and proposed starting next and final rounds of tariff talks on July 26. However, USTR fixed July 29 as the next date for the resumption of talks. It is further reported that the government is going to purchase 25 more Boeing aircraft to add to Biman's existing fleet. But the Boeing purchase is purely a company level deal between Boeing and Biman, and not part of the intergovernmental tariff negotiations, the commerce secretary is learnt to have explained at a Press briefing. But why then Bangladesh will go for this very costly purchase of so many Boeing-made US passenger planes, since the list price of each of these different models of aircraft range from USD 217.9 million to USD 375.5 million. And that too is taking place at a time when Bangladesh's forex reserves, though now on a better footing than before, have yet to reach a comfortable level to afford such a big purchase deal. Hopefully, during actual purchase or leasing, the list prices may come down substantially due to the commissions offered by the selling company depending on market conditions, bulk purchase and so on. That the purchases will take years to materialise is also a consideration to note. Even so, it is still a challenging move that the government is making just to mollify a difficult trading partner despite what has been said to clarify the intent of the plane purchase deal. True, there was already a purchase order for 14 Boeing planes during the past government and that the present numerical strength of Biman fleet needs improvement.

But what matters here is if there is real urgency of such purchase deals. What will, for instance, the corruption-ridden public limited company, Biman, do with those additional planes when its main problems are poor management and outdated operational procedures? Is it then surprising that Biman is lagging behind its regional competitors in terms of service quality as well as business performance? It is to be noted that Bangladesh has already offered zero per cent duty facilities on imports of US-origin products including wheat, LNG, etc. That India, Vietnam and Indonesia are buying large numbers of Boeing aircraft from America and getting considerable tariff exemptions from the USTR does not necessarily mean that Bangladesh would win similar favour from the US just by plane purchase when geopolitics is also a factor. It is purely experience, efficiency and keen business acumen that matter in clinching a good business deal, not just goodwill.​

 

[Saif]

Deal titled 'Agreement on Reciprocal Trade Framework' likely

Bangladesh is expected to assure increasing import volume from the US by US$1.5 billion over next one and a half years as part of a tradeoff package for a probable tariff deal. An official source says Bangladesh and the US are expected to sign a deal title

thefinancialexpress.com.bd

Team leaves for tariff talks amid cautious optimism
Deal titled 'Agreement on Reciprocal Trade Framework' likely
Bangladesh may offer additional $1.5b US imports

FE Report
Published :
Jul 28, 2025 23:49
Updated :
Jul 28, 2025 23:49

Bangladesh is expected to assure increasing import volume from the US by US$1.5 billion over next one and a half years as part of a tradeoff package for a probable tariff deal.

An official source says Bangladesh and the US are expected to sign a deal titled 'Agreement on Reciprocal Trade Framework' if both sides are agreed on their desired demands.

A commerce ministry source gave the import-augmentation indication Monday as a high-powered government delegation left for Washington amid cautious optimism for a fair and square deal to avert the antedated 35-percent prohibitive duties on Bangladeshi exports.

Dhaka is likely to make the offer to the United States Trade Representative during the meetings on reciprocal tariff scheduled for July 29-31 in Washington, DC, he added.

The Bangladesh delegation, headed by Commerce Adviser of the incumbent interim government Sk Bashir Uddin, left Dhaka for the United States on Monday afternoon to resume the third-round negotiations with the United States Trade Representative (USTR) to avert the jacked-up tariffs slapped on products exported to the US market from Bangladesh.

The other members of the delegation are National Security adviser Khalilur Rahman, commerce secretary Mahbubur Rahman and additional Secretary Nazneen Kawshar Chowdhury.

They all are optimistic about securing a fairer tariff deal or rate during the tariff talks, sources said.

Meanwhile, Bangladesh placed order for the purchase of 25 Boeing aircraft from the US with a view to securing a fairer tariff rate from the US administration.

Earlier, Bangladesh already inked a deal with to import 0.7 million tonnes of US wheat within next five years. Of the volume, in the first year, it will import 0.220 million tonnes of the grain.

According to the Bangladesh import plans -- meant for bridging the bilateral trade gap -- the cost is estimated to come to more than $3.0 billion.

A year ago, in the fiscal year 2023-24, Bangladesh's goods worth $7.68 billion were exported. In contrast, Bangladesh imported goods worth $2.5 billion from the country in the fiscal year 2024-25.

The largest single product imported from the United States is iron scraps or iron pieces. And the single-largest export to the US is ready-made garments.

Bangladesh's several businesspersons are now staying in the USA for negotiating with their trade partners. Besides, they will discuss soybean-and wheat-import issues with respective business partners.

A senior commerce official, who is involved with the tariff issue, hopes that the US "may offer good tariff rates in favour of Bangladesh as US President Donald Trump has reduced the additional tariffs on some countries".

The commerce ministry completed discussions with the Bangladeshi businesses, economists, and relevant ministries, for feedback ahead of the third round of negotiations with the United States Trade Representative regarding the trade agreement on the reciprocal tariff imposed by the US administration.

The ministry already sat with US Wheat Associates (USW), Chevron and Excelerate Energy, US Soybean Export Council (USSEC) and US Cotton Association.

Also was sitting with the American Apparel and Footwear Association (AAFA) on July 22.

More than 100 products have been added to this list in the 2025-26 fiscal budget to provide the facility for not only the US but also other countries. Bangladesh has already kept tariffs on 190 products at zero to reduce its trade deficit with the United States.

Currently, Bangladesh levies an average of 6.0-percent duty on products imported from the United States.

On July 07 last, the Trump administration declared a plan to impose 35-percent tariff on products exported to the US market from Bangladesh, with effect from August 01, 2025.

To this end, US President Donald J Trump sent a letter to the Chief Adviser of the Bangladesh interim government, Muhammad Yunus. The new tariff is 2.0-percent lower than the initially declared rate of 37 per cent, issued three months ago, dated April 02 last. It was supposed to take effect from April 09.

The National Security Adviser and the Commerce Adviser of Bangladesh already sat in a meeting with the USTR representatives on July 03. The meeting ended sans decision.

In the meantime, various countries have completed necessary process signing bilateral agreements with the United States through negotiations. Bangladesh is also trying to strike a bilateral agreement.

That is why a delegation led by the commerce adviser held several meetings with the USTR. However, Bangladesh and the US could not agree on all issues in the last talks.

The third and final day of the second round of negotiations on the tariff issue between Bangladesh and the US concluded on July 11, 2025.

However, as several issues remained unresolved in the tariff talks, both nations decided to continue inter-ministerial discussions.​