The United States’ decision to impose a 35 per cent tariff on Bangladeshi exports — slightly reduced from the previously declared 37 per cent — sends a sobering message to Dhaka: trade diplomacy cannot afford complacency. While President Trump’s letter to the interim Bangladeshi government opens a window for renegotiation, the marginal relief it offers raises questions about Bangladesh’s effectiveness in defending its trade interests.
Unlike Vietnam, which secured a significant tariff reduction from 46 per cent to 20 per cent, Bangladesh’s limited success reflects both a lack of strategic engagement and a diplomatic blind spot. Despite months of back-and-forth, including official communications and draft agreements, the outcome has so far been underwhelming. The absence of industry voices — particularly from the RMG sector — in the negotiation team further illustrates a disconnect between policy and on-the-ground realities.
Bangladesh’s exports to the US, particularly in ready-made garments, face an uphill battle if the 35 per cent reciprocal tariff takes effect from 1 August. The risk of losing market share to more favourably treated competitors is real. International buyers may reduce sourcing from Bangladesh or press for lower prices to compensate for the higher duties, directly squeezing the country’s second-largest export sector.
Moreover, the government’s current strategy appears reactive rather than proactive. Trade is no longer just about numbers; it is deeply interwoven with geopolitics and investment diplomacy. Vietnam’s success was not merely based on economic indicators, but on offering strategic value to the United States. Bangladesh, with its relatively small $5 billion trade deficit, should have presented a compelling case based on regional stability, economic openness, and growing consumer markets.
That opportunity, however, still exists. The three-week extension must be used wisely. The government must urgently recalibrate its position, present a concrete roadmap for greater US investment opportunities, and demonstrate regulatory reforms to ensure compliance with American standards, especially in sectors like pharmaceuticals.
The message is clear: goodwill alone does not drive policy shifts in today’s world. The government must now blend diplomacy with strategy, and advocacy with preparedness. With the clock ticking towards 1 August, this is no longer just a tariff issue — it is a test of Bangladesh’s global trade maturity.
