Dhaka eyes tariff deal with U.S. before August 1
NN Online:
Bangladesh remains hopeful of reaching a positive outcome before the August 1 deadline, as the second round of trade talks with the United States concluded with further consensus on several issues, according to Chief Adviser’s Deputy Press Secretary Abul Kalam Azad Majumder on Saturday.
Despite some unresolved matters, both sides agreed to continue inter-ministerial discussions and hold further meetings—either virtually or in person—to work toward a final agreement.
The urgency follows U.S. President Donald Trump’s announcement that a 35% flat tariff will be imposed on all Bangladeshi exports to the U.S. starting August 1, 2025, separate from existing sector-specific duties.
Commerce Adviser Sk Bashir Uddin, who led the Bangladesh delegation in Washington, DC, and National Security Adviser Dr Khalilur Rahman expressed optimism that a favorable resolution is still within reach. Adviser Uddin, along with the Commerce Secretary and Additional Secretary, is set to return to Dhaka but may revisit Washington if necessary.
Dr Rahman and Faiz Ahmad Taiyeb, Special Assistant to the Chief Adviser on Posts, Telecommunications and IT, joined the talks virtually from Dhaka. Senior officials from Bangladesh’s Commerce Ministry and several U.S. government agencies—covering agriculture, energy, commerce, and intellectual property—participated in the three-day discussions, which were coordinated by the Bangladesh Embassy in Washington, DC.
The talks were part of the second round of negotiations on a reciprocal tariff agreement, held from July 9–11, following an invitation from the Office of the United States Trade Representative (USTR). Bangladesh is among the first of 14 countries to respond to President Trump’s July 7 letter proposing adjustments to bilateral trade terms.
In his letter to Chief Adviser Prof Muhammad Yunus, Trump emphasized a desire for a long-term partnership, hinting that the proposed tariffs could be reconsidered if Bangladesh opens up its market and removes trade barriers.
He wrote, “The 35% tariff is still far lower than what would be needed to balance our current trade deficit with your country.” Trump added that the tariffs could be adjusted depending on the evolving trade relationship, and that Bangladesh-based firms could avoid the tariff altogether by manufacturing inside the U.S., where the government would ensure expedited approvals for such investments.
“You will never be disappointed with the United States of America,” the letter concluded.