Commerce adviser confident: No risk to exports, Bangladesh to remain competitive

The United States (US) has reduced its tariff rate on goods from Bangladesh to 20 per cent, a significant reduction from the previous 35 per cent, after a final round of negotiations in Washington.

Commerce adviser Sheikh Bashir feels Bangladesh will remain competitive in the market with that 20 per cent tariff imposed by the USA.

Golam Mortoza, press minister at the Bangladesh embassy in the United States, told Prothom Alo, “In his immediate reaction, the commerce adviser said that despite the 20 per cent tariff imposed on Bangladesh, we will remain in a competitive position. There is no risk of our exports to the United States being hampered. However, we had expected a rate lower than 20 per cent.”

The new rate was announced in an executive order by US President Donald Trump yesterday, Thursday local time. Earlier, the US administration had informed Bangladesh in a letter about the imposition of a 35 per cent reciprocal tariff. Based on that, the new rate reflects a 15 per cent reduction.

Trump’s executive order was published on the White House website. The order outlines the US tariff rates on several dozen countries, including Bangladesh. Among the others, Washington has imposed tariffs of 25 per cent on India, 19 per cent on Pakistan, 15 per cent on Afghanistan, 10 per cent on Brazil, 19 per cent on Indonesia, 19 per cent on Malaysia, 40 per cent on Myanmar, 19 per cent on the Philippines, 20 per cent on Sri Lanka, and 20 per cent on Vietnam.

Starting today, Bangladesh will have to export goods to the United States by paying a total of 35 per cent in tariffs—comprising the existing average tariff of 15 per cent and the newly imposed 20 per cent reciprocal tariff.

A Bangladeshi delegation is currently visiting the United States to discuss the issues related to reciprocal tariff. Members of the delegation held talks with the United States Trade Representative (USTR) for three consecutive days to seek a reduction in tariffs. The third round of discussions was held yesterday, following meetings on Tuesday and Wednesday.

Led by commerce adviser SK Bashir Uddin, national security adviser Khalilur Rahman, commerce secretary Mahbubur Rahman and additional secretary Nazneen Kawshar Chowdhury were present during the tariff talk.