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

[Saif]

Bangladesh must tread carefully as new tariffs kick in

The country is under pressure amid escalating global trade tensions

www.thedailystar.net

Bangladesh must tread carefully as new tariffs kick in

VISUAL: STAR

A new and more perilous chapter in global trade has begun. With the imposition of a 20 percent tariff by the United States, the total duty levied on Bangladesh's vital garment sector now climbs to a punishing 36.5 percent. Our largest export market has suddenly become a far more expensive arena. This is not an isolated squall but part of a much larger storm. The immediate impact is as sharp as it is severe. Exporters face intense pressure from US buyers to absorb the new costs within their already razor-thin profit margins. The very competitiveness of our ready-made garments is at stake.

Yet this moment of crisis is also a test of the nation's resilience and an opportunity for the manufacturing sector to reaffirm its strength. The government and industry leaders believe Bangladesh can weather this, leveraging a hard-won reputation for bulk and timely delivery. The path forward, however, cannot be one of passive hope. It demands a steady hand. The government must continue its diplomatic engagement with Washington, aiming for further negotiations to mitigate this tariff burden.

President Donald Trump's trade decisions pushed American import duties to their highest level in a century, as a new, more contentious era of trade rivalry is playing out. The increases were implemented despite frantic, last-minute lobbying by various countries desperate to escape the levies. In a punitive action against New Delhi's continued purchases of crude oil from Moscow, the US president has now hit India with an additional 25 percent tariff. This comes on top of an existing 25 percent duty imposed after the two nations failed to reach a trade deal before the August 1 deadline—bringing the total tariff on Indian goods to a staggering 50 percent. Whether this new tariff landscape will create a competitive opening for Dhaka remains to be seen.

For Bangladesh, a strategic pivot is essential. Manufacturers must aggressively pursue the diversification of export markets, as the vulnerability of over-reliance on a single trading partner has now been laid bare. This external push must be matched by internal fortification: we must strengthen the industry's backward linkages as an economic necessity. The government, in turn, must encourage and incentivise innovation. The goal must be to help manufacturers move relentlessly up the value chain, from basic apparel to more complex and higher-margin products. In this new global marketplace, it is also time to champion our commitment to sustainable and ethical manufacturing.

The winds of global trade have shifted, perhaps irrevocably. Navigating this new landscape calls for Bangladesh to be both careful and strategic. Our future prosperity depends on it.​

 

[Bilal9]

Commerce Advisor Sk Bashir proved his mettle: Energy Adviser

Commerce Advisor Sk Bashir Uddin proved his mettle over successful US tariff negotiations, Energy Adviser Fouzul Kabir Khan said on Friday.

en.prothomalo.com

Commerce Advisor Sk Bashir proved his mettle: Energy Adviser
Staff Correspondent Dhaka
Updated: 01 Aug 2025, 18: 12

View attachment 20968
Advisers Muhammad Fouzul Kabir (L) and Sk Bashiruddin

Commerce Advisor Sk Bashir Uddin has proved his mettle over successful tariff negotiations with the US, Adviser to the Ministry of Power Energy and Mineral Resources Muhammad Fouzul Kabir Khan said on Friday.

In a Facebook post of Friday afternoon, Fouzul Kabir said, “From domestic price stability to successful tariff negotiations with the US, he (Sk Bashir Unddin) has proved his mettle, to the dismay of naysayers.”

He called Sk Bashir Uddin as ”our extraordinary Commerce Advisor.”

Fouzul Kabir said, “I was tasked by the CA (Chief Adviser) to meet Sheikh Bashiruddin, among others, for the possible position of Commerce Advisor. I caught him on phone in Bhola, where he was on a business trip. We met at my office at the Ministry of Power Energy and Mineral Resources.

“Without any previous acquaintance, we chatted for an hour. He politely declined the snacks my office offered him! What I liked about him is his patriotism, no-nonsense stubbornness, and clarity in organizing a mass of facts for analysis. I conveyed my impressions about him to the CA. Thankfully, for our nation, the CA offered and he accepted the position,” he added.

“May Allah give him Hayate Taiyeba to serve the nation, be it in the public or private sector,” Fouzul Kabir concluded.

On 2 April, US President Donald Trump imposed reciprocal tariffs on countries from which the US imports goods. Fifty seven countries were slapped with increased tariffs at varying rates with Bangladesh facing an additional tariff of 37 per cent.

View attachment 20969
Muhammad Fouzul Kabir Khan

After a three-month suspension of this decision, President Trump informed the Chief Adviser of the interim government in a letter on 8 July that the reciprocal tariff for Bangladesh would be 35 per cent, effective from 1 August.

To reduce the reciprocal tariff imposed by the US administration, Commerce Advisor Sk Bashir Uddin led final negotiations in Washington with officials from the Office of the United States Trade Representative (USTR).

Finally, President Donald Trump issued an executive order on Thursday (US local time), imposing a 20 per cent reciprocal tariff on goods imported from Bangladesh. In the same order, he imposed reciprocal tariffs on several dozen other countries as well.​

I have to echo the praise given by Fouzul Kabir bhai for Sheikh Bashir bhai, though both are equally great advisers.

Sheikh Bashir bhai is an asset to our interim govt. and though not a dyed-in-the-wool corrupt politician (Thank Allah!) he is supremely capable business person and superbly positioned for a cabinet post in the next govt.

To say that he has proved his mettle as a tariff negotiator is an understatement, and if you listen to him talk, you will see that his literary talents especially for Bangla and Sanskrit (also for English) are also wayyyy above average.

He runs a tight ship at AkijBashir Group and is Thankfully an incorruptible individual. His company is at the cutting edge of technology, employing robotics and automation for all products. Wish him Nek Hayat and may he live long and prosper.

 

[Saif]

How dicey is the Trump tariff deal?

The announcement of a 20 per cent reciprocal tariff on all imports from Bangladesh by Donald Trump, the president of the United States (US), has brought a palpable sense of relief in Bangladesh. This announcement, made on July 31, set new reciprocal tariffs on 70 countries, including Bangladesh. Th

thefinancialexpress.com.bd

How dicey is the Trump tariff deal?

Asjadul Kibria
Published :
Aug 09, 2025 22:43
Updated :
Aug 09, 2025 22:43

The announcement of a 20 per cent reciprocal tariff on all imports from Bangladesh by Donald Trump, the president of the United States (US), has brought a palpable sense of relief in Bangladesh. This announcement, made on July 31, set new reciprocal tariffs on 70 countries, including Bangladesh. The tariff rates on these countries range between 10 per cent and 71 per cent and came into effect last Thursday.

Earlier on July 8, the US president proposed 35 per cent reciprocal tariff on Bangladesh but suspended the same for three weeks to give room for negotiation. During the period, the official trade delegation of Bangladesh rushed to Washington to negotiate with the USTR officials and reach a deal with the Trump administration reducing the reciprocal tariff to a reasonable rate. It is to be noted that Trump first announced a 37.50 per cent reciprocal tariff on Bangladesh on April 2 this year, when he also imposed different rates of tariff on more than 100 countries along with a 10 per cent universal tariff. Soon, responding to requests from different trade partners, he suspended levying of the proposed tariffs for 90 days, literally asking them to make a deal individually with the US to get tariff reduction. Dr Muhammad Yunus, chief adviser of the interim government, in a letter to Trump, also requested him to provide a three-month time before finalising the tariff.

Nevertheless, three months is not enough at all for a country like Bangladesh to negotiate a reasonable trade deal or free trade agreement (FTA) with the world's most powerful nation. The structure of the US FTA with any-country goes beyond trade in goods and services. It extensively covers investment, intellectual property rights and standards of labour and environment. The US believes in 'deep integration' and so full liberalisation of goods and services is an inherent component of any bilateral (BFTA) with the US. Moreover, the BFTA goes beyond the obligation of multilateral Intellectual Property Rights (IPRs) or Trade Related Aspects of Intellectual Property Rights (TRIPS) of the World Trade Organization (WTO). The US also stresses investment protection as embodied in the FTA, mainly for the protection of the interests of the US-based Multi-National Entities (MNEs). There are also provisions for environment and labour standards, and any BFTA with the US can't be complete without the inclusion of these two components. Thus, a BFTA with the US is actually a comprehensive agreement that supports economic and even political reforms in the partner countries. This is the reason why very few countries sign any BFTA with the US. So far, only 20 nations have signed BFTA with the US.

After becoming the president of the US in 2016, Trump put stress on reaching BFTA with the trading partners and asked them to negotiate bilaterally instead of multilaterally under the umbrella of the WTO. But during the four years of his first term, no country signed any BFTA mainly due to the complex structure and time-consuming negotiation. In his current term, Trump has virtually abandoned the practice of prolonged negotiation and started to use tariffs as the main tool to compel other countries to sign trade agreements with the US. It seems that tariffs as a weapon are working, as a number of trading partners have agreed to sign bilateral deals to avoid excessive tariffs.

The Bangladesh delegation, led by the commerce adviser, demonstrated unwavering determination and hard work in convincing the Trump administration to agree to a lower tariff on Bangladesh. In exchange, they agreed to a set of conditions, offering trade and non-trade benefits to the US, along with almost zero tariffs to almost all the products importable from that country. Though the details of the negotiated deal are yet to be unveiled formally, it is learnt from the media that Bangladesh is likely to purchase 25 aeroplanes from Boeing, the US aviation giant, along with an increase in imports of wheat, edible oil, crude fuel oil, cotton and military equipment. The country is also likely to sign a number of international agreements on IP rights and address the US concern on data protection act. Finding no other alternative within such a short period of time, it appears Bangladesh has mostly aligned with the US FTA structure. One, however, needs to look into the past before making any final comment on the latest development.

Twelve years ago, the Obama administration suspended the GSP Generalised System of Preference (GSP) facility due to the Rana Plaza tragedy that claimed more than 1,100 lives of garment workers. Thus, the US gave a message to Bangladesh that prompted the country to sign the Trade and Investment Cooperation Forum Agreement (TICFA) in the same year. As GSP covered only one per cent of the total exports to the US, policymakers did not put much effort into restoring the facility. Instead, discussion on signing a BFTA with the US gained momentum. It had also paused for two reasons. First, Bangladesh did not sign any FTA with any country, let alone with a big trade partner. Second, the gradual deterioration of the relationship between the now ousted Hasina regime and the US. If the policymakers put some serious effort into advancing a bilateral trade deal with the US at that time, instead of putting much effort into graduation from the Least Developed Country (LDC) status, Bangladesh might be in a better position today in dealing with Trump's tariffs.

A big question now is whether Trump will stick to the 20 per cent tariff on Bangladesh. What will happen if he suddenly shifts his position even before signing the bilateral reciprocal trade agreement? Or even after signing the agreement? The answer is unknown as it is not possible to rule out such a possibility. Trump has already proved it by increasing the 25 per cent tariff on India to 50 per cent within 24 hours. He also asked India to stop purchasing oil from Russia or face the higher tariff on certain products, including textiles and clothing, after August 21. This is good news for Bangladesh as the country's clothing exports will face less competition with India in the US market at least for some time in the near future. Indian apparel exporters fear that many US buyers would move to Bangladesh and Vietnam because of higher tariff.​

 

[Saif]

Trump tariffs: Bangladesh-US trade relations

On July 31, US President Donald Trump issued an executive order imposing tariffs on almost all US trading partners. His actions represent a departure from the open liberal trading system established after World War II under the auspices of the General Agreement on Tariffs and Trade (GATT), later ad

thefinancialexpress.com.bd

Trump tariffs: Bangladesh-US trade relations

Muhammad Mahmood
Published :
Aug 09, 2025 22:33
Updated :
Aug 09, 2025 22:33

On July 31, US President Donald Trump issued an executive order imposing tariffs on almost all US trading partners. His actions represent a departure from the open liberal trading system established after World War II under the auspices of the General Agreement on Tariffs and Trade (GATT), later adopted by the World Trade Organization (WTO). The post-war global trading system was established with an emphasis on reducing tariff and non-tariff barriers. The regime aimed to boost economic growth and prevent a repeat of the 1930s trade wars that preceded WWII.

Trump's trade wars will create an environment of uncertainty and that is always bad for trade. His protectionist tariff policies would cause economic growth around the world to slow down. More alarmingly, this US tariff measures could rival those of Smoot-Hawley measures of the 1930s that led to a global trade war, thus creating the conditions for the WWII.

As for Bangladesh, bilateral trade with the US is increasing, with the U.S. being a major export market for Bangladesh, particularly for ready-made garments (RMG). Despite uncertainty created by Trump tariffs, Bangladesh recorded a significant boost (25.13 per cent) in RMG exports to the US in the first half of this year both in terms of value and volume (FE, August 7). Bangladesh also runs trade surpluses with the US. The U.S. is also a significant investor in Bangladesh, especially in the energy sector. Recent export performance was likely driven by US importers making advance purchases to avoid upcoming Trump tariffs.

As the deadline approached for the next phase of Trump tariffs, the US was set to impose a 35 per cent tariff on exports from Bangladesh, down from 37 per cent that was indicated in April. This proposed rate was still more than double the rate Bangladeshi exports faced in the US market. This proposed tariff on Bangladesh exports to the US which are primarily composed of RMG could have serious consequences. RMG accounts for about 80 per cent total exports from the country. In fact, the proposed tariff rate could completely wipe out its price competitiveness over its regional rivals. This is the only competitive advantage Bangladesh has in RMG exports.

Up until "reciprocal tariffs" (RT) were introduced, Bangladeshi exports faced an average tariff of about 15.7 per cent. When the new tariff eventually comes into effect, the average tariff rate could jump to about 50 per cent. In 2024, Bangladesh exported goods worth nearly US$8.4 billion to the US, of which US$7.34 billion were RMG. The RMG industry contributed 8 per cent to the country's GDP in 2024-25.

Over four million people are employed in the RMG industry in Bangladesh, with the majority being women. Many of these workers rely on regular wages to meet their expenses and are experiencing rising job insecurity. The Trump tariffs could force factory closures ?and workers being laid off, as such the stakes are not only?economic but also existential.

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

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

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

Following the announcement of the 35 per cent tariff decision by the US, a Bangladeshi trade delegation travelled to Washington to renegotiate the trade deal. It remains a mystery what they have been doing during the three months tariff pause period.

Bangladesh is one of the most protected economies globally and had a US$6.2 billion trade surplus with the US in 2024. Therefore, Bangladesh does not have much of a negotiating or bargaining leverage with the US. Additionally, Bangladeshi goods, particularly its main exports such as RMG, can be replaced by US importers from other countries.

Bangladesh is already experiencing a difficult political and economic situation. The RMG industry that grew and expanded under the current trade and industry regime, is charaterised by structural inability to explore markets beyond primarily to the US and then to a few west European countries. The primary factor associated with the structural rigidity is the country's limited exposure to international competition.The problem worsens when a corrupt, inefficient bureaucracy controls the economic policy making process.

If Bangladesh continues to focus on RMG exports instead of shifting to a competitive diversified manufacturing base, the industry will need to adopt new technologies and innovate to maintain its position in the global apparel market. Now the future of the RMG industry depends on robotics and AI technologies which will begin to reshape the RMG industry as has happened in most other industries already.

Despite odds against Bangladesh's negotiating position, the Bangladesh trade delegation has been successful in bringing down the tariff rate to 20 per cent. The negotiated rate is similar to those of Bangladesh's major competitors in the US apparel market, including Vietnam, Sri Lanka, and Pakistan.

India, however, failing to reach a comprehensive trade agreement with US will face 25 per cent plus penalties for its economic ties with Russia. On August 6, Trump imposed an additional 25 per cent tariff on Indian good raising the rate to 50 per cent. Since the start of the Russia-Ukraine conflict, India has emerged as the second largest buyer of Russian oil after China, purchasing US$133.4 billion worth of oil last year, compared to minimal imports prior to the Russia-Ukraine conflict. Trump claims that India is making money from Russian oil by reexporting refined Russian oil to countries like US ally Australia and others. Australia purchased US$6.2 billion of oil from India last year, largely sourced from Russia.

To add insult to the injury, Trump also said Moscow and New Delhi "can take their dead economies down together, for all I care. We have done very little business with India, their tariffs are too high, among the highest in the world". But Trump is right on both counts that India is making big profits out of Russian oil and India is a dead economy. Indian remains a highly protected economy which has engendered a highly inefficient economy. As such India continues to face significant poverty over 80 years after gaining independence notwithstanding continuously in military and political conflicts with its all neighbouring countries. However, higher tariffs on Indian exports including clothing to the US will work in favour of Bangladesh.

The specifics of Bangladesh's offer to secure tariff concessions and reduce its trade surplus with the US remain crucial. Bangladesh has agreed to import 700,000 metric tons of wheat annually from the US for five years, as part of a wider effort to facilitate further trade talks with the US.

Bangladesh will also increase import of soybean oil and cotton from the US. Additionally, the Ministry of Commerce placed an order for 25 Boeing aircrafts. However, Biman, the national flag carrier, stated that it was not consulted regarding this procurement decision. This kind of decision-making is common in Bangladesh.

One of the objectives of Trump tariffs is to expand the market access for US agricultural products to bridge the trade gap. In fact, Bangladesh mostly imports agricultural products from the US among others. Not surprisingly the trade negotiation with the US to bridge the trade gap involved Bangladesh agreeing to import more agricultural products.

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

Also, a high proportion of rural women are engaged in farm activities. Therefore, importation of highly subsidised US farm products like wheat and soybean could pose a threat to the livelihood of marginal to small farmers and farm labourers notwithstanding the impact on country's drive to attain food grain self-sufficiency.

Trump's attempt to address the issue of US$12 trillion trade deficit has more to do with macroeconomic factors than the unfair trade practices which he cites as the reason to wage a trade war on the rest of the world. Trump tariffs will raise a lot of revenue but that will be coming from US firms and consumers, and not from exporters to the US. This will drive up price levels affecting consumers, squeeze profit margins of US companies, slow down economic activity and damage relations with trading partners including allies.​

 

[Saif]

Dhaka-Washington tariff deal can be changed or cancelled by the next government: Adviser Khalilur

Bangladesh has negotiated an agreement with the US government with the provision that the next elected government could make required changes or cancel any, said National Security Adviser to the interim government Dr Khalilur Rahman. He said the negotiations, which are still going on, are based on

thefinancialexpress.com.bd

Dhaka-Washington tariff deal can be changed or cancelled by the next government: Adviser Khalilur

FE Online Report
Published :
Aug 11, 2025 00:11
Updated :
Aug 11, 2025 00:30

Bangladesh has negotiated an agreement with the US government with the provision that the next elected government could make required changes or cancel any, said National Security Adviser to the interim government Dr Khalilur Rahman.

He said the negotiations, which are still going on, are based on three principles.

"We are negotiating with President Trump's government an agreement that is revocable," he said while addressing the welcome reception programme by the Bangladesh Textile Mills Association (BTMA).

BTMA organised the welcome reception at Gulshan Club on Sunday in the city to congratulate the Bangladesh team led by Commerce Adviser Sk Bashir Uddin that successfully negotiated to reduce the reciprocal tariff to 20 per cent from 35 per cent.

"...We have negotiated on three principles," Mr Rahman said, explaining the first is that they are not an elected government and they are not going to obligate the next government.

"The next government must have the power to make changes, modifications, or cancel."

The second is that they take the responsibility they can fulfil, he said, adding that if they fail to meet any commitments, the US will cancel this agreement and charge Bangladesh 37 per cent tariffs.

"Third, this is a bilateral agreement. We cannot do this with any third country. We do not want to get into any geopolitical trap," he said.

He, however, hinted that the tariff might go down further for Bangladesh.

Speaking there, Commerce Adviser Sk Bashir Uddin said they committed to the US authorities that the trade deficit would be reduced by 75 per cent in a year.

He said if needed they will go to the US after two or three weeks, as the negotiation is still continuing.

The fascist government has left the legacy of a 'time-bound time bomb' in the name of LDC graduation, he said, terming it one of the major challenges.

"Next challenge is LDC graduation, which is bigger than Trump tariff," he said, calling on all businesses and stakeholders to sit together to devise an action plan to face the challenges with strong leadership.

Speaking there, BTMA president Showkat Aziz Russell said that following the successful negotiation with the United States regarding reciprocal tariffs, Bangladesh is now in a stronger position.

As a result, the country's exporters are receiving more inquiries from buyers, he said.

"We want to invest further... now is the high time to invest in the textile sector," he said.

BGMEA president Mahmud Hasan Khan and BKMEA president Mohammad Hatem, among others, spoke there.​