Reciprocal tariffs: Bangladesh eyes a good waiver from the US

As countries around the world are engaging in negotiations with the Trump administration to avert reciprocal tariffs on exports to the US, Bangladesh is also making its case for tariff relief. National security adviser Khalilur Rahman and commerce adviser Sheikh Bashir Uddin are now in the US to discuss the issue with the US authorities.

According to sources, a meeting with US officials took place on Thursday, with a follow-up session expected on 9 July. Commerce secretary Mahbubur Rahman may join the follow-up sessions.

Speaking to Prothom Alo, adviser Sheikh Bashir Uddin said, “We had a meeting with the USTR (United States Trade Representative) yesterday (3 July). We are still hopeful of securing a good tariff waiver. We have made every possible structural and tariff concession we could afford, considering our economic capacity.”

He added, “There is another meeting scheduled for 9 July. We are expecting a positive outcome. In the 3 July meeting, the USTR assured us that we will not lag behind our competitors in receiving tariff relief.”

Bangladesh currently pays an average of 15 per cent in tariffs on exports to the US. On 3 April, the Trump administration suddenly announced an additional tariff of 37 per cent, bringing the total tariff to 52 per cent. The new rate was supposed to take effect on 9 April, but the US administration suspended it for three months on that day.

The suspension is set to expire on 9 July.

The US is the world’s largest economy and Bangladesh’s top export destination. Many other countries are also actively engaged in negotiations with Washington, seeking tariff reductions and favourable trade agreements.

In recent months, the US has signed significant trade deals with several nations. In May, a US-UK trade agreement was hailed as historic by the White House. On 27 June, President Donald Trump signed a trade deal with China aimed at ending the ongoing trade war.

Meanwhile, President Trump announced on Wednesday that a deal had also been reached with Vietnam. Under the new terms, the US will impose a 20 per cent tariff on Vietnamese imports, down from a previously proposed 46 per cent. In return, Vietnam will not impose tariffs on US goods, though it's unclear if Vietnam has formally agreed to this condition.

Also, US secretary of commerce Howard Lutnick said products re-exported by other countries through Vietnam would be entitled to a 40 per cent tariff.

Other countries, including India, Indonesia, South Korea, and Thailand, are also negotiating with the Trump administration on tariffs.

The commerce ministry had earlier indicated that a tariff agreement with the US was likely. A draft deal has been prepared, and final negotiations are underway. As part of the strategy, Bangladesh is planning to purchase aircraft, cotton, and wheat from the US.

Sources at the Bangladesh embassy in Washington described the 3 July discussion with the USTR as positive. While a final agreement might not be done immediately, the suspension of tariffs on Bangladesh may be extended beyond 9 July.