Bangladesh has entered into a Memorandum of Understanding (MoU) with the United States to import 700,000 tons of high-quality wheat each year for the next five years at competitive rates. The agreement was reached to offset the new import tariffs imposed by the Trump administration.

According to a statement from Bangladesh’s Ministry of Food (MoFood), the MoU was signed on Sunday ahead of the third round of tariff negotiations between Bangladesh and the United States. Md Abul Hasanath Humayun Kabir, Director General of Bangladesh’s Food Directorate (DGoF), and Joe Sowers, Vice President for South and Southeast Asia at U.S. Wheat Associates, signed the agreement.

The second round of talks ended without a resolution after the United States attached conditions related to expanding certain security cooperation in exchange for a non-disclosure tariff agreement. Meanwhile, the U.S. has confirmed it will proceed with joint military exercises with Bangladesh.

“This MoU was signed between Bangladesh and the United States to ensure the overall food security, nutritional quality, and food supply of the country,” the Bangladesh interim government said in a statement.

The United States has recently declared a 35% tariff on Bangladeshi exports. Under its ‘America First’ initiative, the Trump administration has been increasing import duties on goods from multiple countries as part of efforts to reduce the trade imbalance. The U.S. is also reassessing its tariff policies toward nations offering favorable import deals for American products. As a result, Bangladesh is seeking to bridge the trade gap by purchasing key commodities such as wheat from the United States.

Meanwhile, the government is also engaging in diplomatic efforts to mitigate the steep tariffs on goods.

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