Possibility of tariff agreement between Bangladesh and the United States
There is a possibility that Bangladesh will soon sign a tariff agreement with the United States. A draft of the agreement has already been prepared, and final discussions are scheduled for 3 and 4 July.
If signed, the additional 37 per cent countervailing duty imposed by the Donald Trump administration on Bangladeshi exports may be reduced. This information comes from sources within the Ministry of Commerce.
According to the sources, Trade Advisor Sheikh Bashiruddin will travel to Washington to attend the upcoming talks with the United States Trade Representative (USTR).
National Security Advisor Md Khalilur Rahman, who has been in the US since 26 June, also held a meeting with the USTR on the same issue and will be present during the final session.
Speaking to Prothom Alo on Sunday night, Trade Advisor Sheikh Bashiruddin said, “We are on the verge of signing a tariff agreement with the United States, but it will depend on certain conditions. If we assess that the conditions are compatible with the capacity of Bangladesh’s economy, an agreement will follow.”
He added, “Some details are still pending. Once received, I will brief the Advisory Council on the entire process and the conditions. We plan to proceed after 3 July, not before. The security advisor is currently in the United States.”
Currently, Bangladeshi products are subject to an average US tariff of 15 per cent. However, on 3 April, the Trump administration unexpectedly announced an additional 37 per cent counter-tariff. Similar measures were imposed on 60 other countries, although with varying rates.
This additional tariff was scheduled to take effect on 9 April but was suspended for three months, with the suspension set to expire on 9 July. Senior officials in Bangladesh’s Ministry of Commerce remain hopeful that President Trump will extend the moratorium for another year.
On 7 April, Chief Advisor Professor Muhammad Yunus wrote to Donald Trump, formally requesting a three-month suspension. It was also indicated that Bangladesh is considering reducing tariffs by 50 per cent on key US exports.
On the same day, Trade Advisor Sheikh Bashiruddin sent a separate letter to USTR Ambassador Jamieson Greer, reaffirming Bangladesh’s commitment to removing barriers to US exports and its belief in constructive dialogue and cooperation.
Over the past two months, several rounds of bilateral meetings—both in person and online—have taken place. Bangladesh previously met with the USTR in Washington on 21 April, during which the US side sought clarification on six specific issues.
Bangladesh responded in writing on 4 June. A draft tariff agreement was prepared on 12 June, followed by an online meeting on 17 June. In continuation of that process, Security Advisor Khalilur Rahman held another meeting in Washington on 26 June.
When asked about the six issues the US raised, Commerce Secretary Mahbubur Rahman told Prothom Alo that the matter is confidential and cannot be disclosed. However, Commerce Ministry sources confirmed that some of the US demands stem from their own domestic legal framework, which does not align with Bangladeshi laws. Bangladesh is negotiating accordingly and has refrained from accepting any incompatible conditions.
The Commerce Ministry has also learned that several other countries—such as India, Vietnam, Japan, and members of the European Union—are engaged in similar negotiations with the US over the reciprocal tariff issue. Indonesia, however, has opted to withdraw from such discussions.
Commerce Secretary Mahbubur Rahman told Prothom Alo last Thursday that Bangladesh is ahead of other countries in bilateral talks with the US regarding the counter-tariff issue.
As part of efforts to assure the US, the Bangladesh government has agreed to import 300,000 tonnes of wheat directly from the US—even at a cost of $20 to $25 more per tonne than imports from other countries. The Ministry of Civil Aviation and Tourism has also moved to purchase aircraft from US-based Boeing. Meanwhile, steps are being taken to expand cotton imports from the US by building additional storage facilities.
Furthermore, the 2025–26 national budget has imposed zero tariffs on most US imports.
According to Commerce Ministry data, Bangladesh exported goods worth $8.36 billion to the US in 2024, while imports from the US stood at $2.21 billion—resulting in a trade surplus of $6.15 billion in Bangladesh’s favour.
President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Md Fazlul Haque, told Prothom Alo, “I hope the US will delay the counter-tariff for an extended period. If not, the government should negotiate to bring Bangladesh’s tariff rate in line with competitors such as Vietnam, Cambodia, and India.”
He added, “India’s counter-tariff rate is lower than ours. If India manages to reduce it further through negotiations, Bangladesh could face increased pressure. We must remain cautious before finalising any agreement.”