35pc US tariff: Bangladesh in crucial talks with Washington

Staff Reporter :

Bangladesh is set to enter a crucial second round of negotiations with the United States on Thursday over the imposition of reciprocal tariffs, according to a statement from the Chief Adviser’s Office.

The discussions, prompted by an invitation from the Office of the United States Trade Representative (USTR), come in the wake of letters sent by President Donald Trump to leaders of 14 countries on 7 July. These communications outlined revised trade terms under the administration’s new tariff framework.

Bangladesh is among the first countries to resume dialogue under this initiative. The current US proposal suggests a 35 percent tariff on Bangladeshi exports – slightly reduced from the initial 37 percent rate but still notably higher than the 20 percent rate Dhaka had anticipated and is actively seeking.

Officials in Dhaka have argued that Bangladesh deserves a more favourable arrangement than some regional peers, including Vietnam, which has successfully negotiated its tariff down to 20 percent. The proposed tariff hike has raised serious concerns among Bangladeshi exporters, particularly in the ready-made garments (RMG) and textile sectors that are heavily reliant on the US market.

Industry leaders caution that the elevated rate could undermine Bangladesh’s price competitiveness and negatively affect export revenues at a time when global trade remains uncertain.

Commerce Adviser Sk Bashir Uddin is leading the Bangladeshi delegation and will attend the meeting in Washington, DC. National Security Adviser Khalilur Rahman is expected to participate virtually from Dhaka. The Commerce Secretary and an Additional Commerce Secretary are already in Washington to provide support during the negotiations.

The two parties are expected to review the outcomes of the initial round of talks held on 27 June, during which Bangladesh outlined its position and appealed for a more balanced tariff structure under the new US regime.

Government sources remain cautiously optimistic that today’s talks will help bridge the differences and pave the way for a resolution ahead of the 1 August implementation deadline.

The outcome of the negotiations holds significant stakes for Bangladesh’s export-oriented economy, particularly its $45 billion RMG sector, with the United States serving as its largest single-country market.