Tariff deadlines approach without official confirmation of third-round trade discussions by the US government.
**US-Bangladesh Reciprocal Tariff Policy: A Last-Minute Negotiation**
The US and Bangladesh are on the brink of a significant trade decision, with the deadline for a new reciprocal tariff policy rapidly approaching. As of August 1, 2025, a 35% duty will be imposed on Bangladeshi exports to the US, following a 90-day pause on reciprocal tariffs above 10% for most countries to allow for negotiations.
The United States Trade Representative (USTR) has yet to schedule the third round of negotiation talks with Bangladesh, despite Bangladesh's formal request for a meeting on July 26–27. This lack of confirmation has raised concern among officials at the commerce ministry, as the steep tariff—raising the average duty on exports to nearly 50%—could significantly impact Bangladesh's key export sectors, particularly textiles and garments.
To gain leverage in the tariff negotiations, the government of Bangladesh has approved a proposal to import 2.20 lakh tonnes of wheat from the United States at a higher price through a government-to-government arrangement. This decision is part of Bangladesh's strategy to diversify wheat import sources, strengthen its bargaining position, and potentially demonstrate a willingness to increase imports of US agricultural products. The imported wheat, which contains a higher protein level, is being bought as part of Bangladesh's efforts to reduce the 35% tariff currently imposed by the US on Bangladeshi exports.
However, it remains uncertain whether this move will be sufficient to avert the steep tariffs. The US has not signalled any change in its tariff position, and the outcome of the July 29 meeting—the last chance for negotiation before the August 1 deadline—remains uncertain.
Vietnam, Indonesia, India, and Pakistan face much lower tariffs under the same policy compared to Bangladesh, placing Bangladesh at a disadvantage relative to its competitors. In light of this, engaging lobbyists for the tariff negotiation was deemed unbeneficial at this stage.
The economic impact of the proposed tariffs would be significant. If the 35% reciprocal tariff takes effect, Bangladesh's export-dependent industries would face dramatically higher costs in their largest foreign market, potentially eroding competitiveness and threatening jobs and economic growth. While US consumers and retailers may face higher prices for Bangladeshi goods, the US administration appears determined to pursue its reciprocal tariff agenda, framing it as a matter of fairness and economic sovereignty.
The finance adviser, Salehuddin Ahmed, chaired the meeting where this decision was made and announced that Bangladesh will import 2.20 lakh tonnes of wheat from the United States at a price of $302.75 per tonne, totaling Tk817.57 crore. The adviser also mentioned that he has talked to the US Chamber and they have a good impression of Bangladesh.
As the deadline approaches, both countries are preparing for a crucial virtual meeting on July 29 to discuss the matter. The commerce adviser will have meetings with the USTR before August 1, offering a last chance for negotiation before the new tariff takes effect. The outcome of these talks will have significant implications for Bangladesh’s economy, particularly its export sector, and will test the limits of bilateral trade diplomacy under the current US administration.
- The rising tariffs in the US-Bangladesh trade relations, particularly in the textiles and garments sector, could potentially draw attention from the finance and general-news industry, given the significant impact on Bangladesh's export-dependent businesses.
- The strategic decision by the government of Bangladesh to import wheat from the US as a bargaining chip in the tariff negotiations might also spark interest in the politics sector, as it signals a broader attempt to strengthen relations with the US, possibly leading to increased US imports of Bangladeshi goods.
