Dhaka eyes relief as tariff talks wrap up
Gazi Anowar :
The final round of high-level negotiations between Bangladesh and the United States over reciprocal tariffs concluded late last night, with Bangladeshi officials expressing cautious optimism over a potentially favourable outcome.
The three-day discussions focused on securing a reduction in the 35per cent tariff currently imposed on Bangladeshi exports to the US, particularly affecting the ready-made garment (RMG) sector-Bangladesh’s largest export industry to the American market, valued at approximately $8 billion annually.
According to the Bangladesh Embassy in Washington, the concluding session was held from 11:00 pm to 1:00 am (Bangladesh time). A formal announcement on the revised tariff rate is expected imminently.
“We have resolved the bulk of the outstanding issues with the United States Trade Representative (USTR),” said a senior official from the Ministry of Commerce. “There is strong optimism that the talks will yield a further reduction in tariffs on Bangladeshi goods. However, the final decision rests with President Trump.”
The negotiation team from Bangladesh was led by Commerce Adviser Sk Bashir Uddin, National Security Adviser Khalilur Rahman, and Commerce Secretary Mahbubur Rahman, who travelled to Washington earlier this week for the final push ahead of the 1 August implementation deadline.
The Trump administration initially imposed a 37per cent reciprocal tariff on Bangladeshi imports on 2 April, which was later reduced to 35per cent on 7 July. Dhaka is now seeking a more competitive rate-ideally below those imposed on regional rivals Vietnam and India.
Speaking to The New Nation, a senior commerce ministry official said, “We remain hopeful. The negotiations have progressed in a constructive manner. We expect that Bangladesh’s efforts to address the trade imbalance and foster deeper bilateral cooperation will be recognised in the final decision.”
The talks take place against a backdrop of broader shifts in US trade policy, including a 25per cent tariff on Indian goods, ongoing sanctions on Russian energy exports, and a reduction in tariffs on Vietnamese imports from 46per cent to 20per cent, as announced by President Trump on Wednesday.
Industry leaders have warned of the consequences if a substantial tariff remains. Mahmud Hasan Khan, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), cautioned, “Even a 20per cent tariff will erode our margins. Anything above 25per cent risks rendering Bangladeshi garments uncompetitive in the US market. We urge both governments to prioritise fair trade and the preservation of employment.”
Bangladesh currently holds a $6 billion trade surplus with the US-exporting $8 billion while importing goods worth approximately $2 billion. In response to concerns over the imbalance, Bangladesh has committed to several strategic import deals: including the purchase of 25 Boeing aircraft, an annual import of 700,000 tonnes of US wheat, and increased procurement of American cotton, soybeans, pulses, and LNG.
A parallel delegation of private sector representatives also travelled to Washington this week to pursue memoranda of understanding (MoUs) with major US corporations.
Although any final agreement will not be formalised before 1 August-pending legal review by the Law Ministry and approval from the Chief Adviser’s Advisory Council-a positive conclusion to the talks could offer immediate relief to Bangladesh’s export sector and signal a significant step forward in Dhaka-Washington trade relations.