Dhaka pushes for reciprocal tariff cut

Diplomatic Correspondent :

Bangladesh has formally sought a reduction in US reciprocal tariffs following what it described as significant progress in narrowing the bilateral trade gap, during a high-level meeting in Washington on Thursday.

National Security Adviser (NSA) Dr Khalilur Rahman met US Trade Representative Ambassador Jamieson Greer and urged Washington to lower the current 20 per cent reciprocal tariff on Bangladeshi goods, CA Office said on Friday.

He argued that Bangladesh has already taken concrete steps even before the formal execution of the reciprocal trade agreement, including sharply increasing imports from the United States and implementing key elements of the proposed deal.

According to Dr Rahman, these measures demonstrate Bangladesh’s commitment to addressing US trade concerns and justify an early review of tariff levels. Ambassador Greer agreed to positively consider the proposal.
“Even before the formal execution of the reciprocal trade agreement, Bangladesh has made major strides in reducing the trade gap by substantially increasing imports from the US and has implemented some key aspects of the agreements,” Khalilur Rahman said during the meeting.

The US trade chief also gave assurances that Washington would seriously examine Bangladesh’s request to lower or fully eliminate reciprocal tariffs on apparel that uses US-origin content, a move that could significantly benefit Bangladesh’s export-oriented garment sector while supporting American suppliers.

Both sides agreed to move quickly to resolve a small number of outstanding issues so that the reciprocal tariff agreement can be finalised and executed without delay.

During the meeting, Dr Rahman noted that expanding trade is expected to lead to a rise in business-to-business engagement between the two countries.

In this context, he requested US support to ease business travel for Bangladeshi nationals, particularly following Bangladesh’s recent inclusion in the US visa bond requirement framework.

He also sought access for Bangladesh’s private sector to funding from the US International Development Finance Corporation (DFC).

Ambassador Greer assured him of efforts to facilitate progress on these issues.
The reciprocal tariff of 35 percent on Bangladesh was imposed during the Trump administration as part of a broader “America First” trade policy that sought to address what Washington viewed as persistent trade imbalances with key trading partners.

However, after the negotiations spearheaded by Khalilur Rahman the tariff on the goods of Bangladesh products to US market was slashed to 20 per cent.

Under this approach, the US introduced higher tariffs and stricter trade terms for several developing and emerging economies, including Bangladesh, arguing that existing arrangements disadvantaged American producers.

For Bangladesh, the tariff particularly affected export-oriented sectors such as readymade garments, which account for the bulk of its shipments to the US market.

Dhaka has since engaged in sustained negotiations with Washington, focusing on increasing US exports to Bangladesh, aligning trade practices with US expectations, and seeking tariff relief through a reciprocal framework rather than unilateral concessions.

Bangladesh Ambassador to the United States Tareq Md Ariful Islam accompanied Dr Rahman at the meeting. Assistant USTR Brendan Lynch and other senior officials were also present.

Dr Rahman is scheduled to hold further talks with senior officials at the US State Department on Friday.