Zakir Hossain / Dhaka
Bangladesh has successfully negotiated a reduction in US tariffs on its exports, from 35% to 20%, following three intense rounds of negotiations in Washington.
The White House confirmed the revised rate on Friday, easing concerns raised after President Donald Trump’s July 8 directive that imposed a blanket 35% tariff on all Bangladeshi imports. The move had sparked alarm in Dhaka, particularly among garment exporters.
The breakthrough came after a high-level Bangladeshi delegation led by interim commerce adviser Sk Bashir Uddin, national security adviser Khalilur Rahman, commerce secretary Mahbubur Rahman, and additional secretary Nazneen Kawshar Chowdhury held talks with the US Trade Representative (USTR).
In a bid to address the longstanding trade imbalance, Bangladesh presented a comprehensive proposal that included commitments to import seven lakh tonnes of wheat, LNG, cotton, medicines, chemical raw materials, capital machinery, and agricultural products from the US. A major highlight was a deal signed on July 27 to purchase 25 aircraft from Boeing, widely viewed as a strategic counterweight to the tariff move.
According to USTR data, bilateral trade stood at $10.6 billion in 2024, with Bangladesh exporting $8.4 billion to the US—marking a 1.1% increase year-on-year—while US exports to Bangladesh dipped slightly to $2.2 billion, creating a $6.2 billion trade deficit for Washington.
The initial tariff hike of 37% imposed in April 2025, followed by a temporary 90-day deferment and a revised 10% increase, had threatened to derail trade ties. However, the final agreement to fix tariffs at 20% is expected to stabilise relations and maintain Bangladesh’s export momentum.
Observers see the outcome as a sign of Dhaka’s increasing strategic engagement with Washington amid shifting global trade dynamics.