As the Trump administration’s 90-day reciprocal tariff pause nears its July 8 deadline, Bangladesh is set to hold critical talks today and tomorrow with the United States Trade Representative (USTR) in Washington, aiming to secure reduced tariff rates and preserve its export competitiveness in the U.S. market.
Commerce Adviser Sk Bashir Uddin has flown to Washington to attend the meeting, joining National Security Adviser Khalilur Rahman, who is already engaged in negotiations. The main agenda is to challenge the proposed 37% reciprocal tariff on Bangladeshi goods, an increase from the previously imposed 16%, raising the total potential duty to 53%.
Amid global trade uncertainty, the Trump administration has pledged to sign 90 reciprocal tariff agreements during the pause. However, only the United Kingdom has finalized a deal so far, and several countries, including India and Bangladesh, are still navigating complex negotiations. Officials close to the talks suggest a possible extension of the pause by another 90 days, as multiple nations have not yet reached consensus with the U.S.
Bangladesh has already responded to three drafts of the U.S. tariff agreement, most recently on Monday, highlighting the need for further discussion on key issues. A significant point of contention is Bangladesh’s preference for a multilateral tariff framework aligned with World Trade Organization (WTO) rules, as opposed to the U.S.’s push for bilateral tariff concessions that could disproportionately benefit American exports.
The two nations have signed a Non-Disclosure Agreement, limiting public details, but sources indicate the U.S. has set strict conditions tied to tariffs, para-tariffs, and broader national interests. A working plan is in motion to address these demands, though officials stress that finalizing the agreement will take more time.
Bangladesh has countered the 37% proposal with an offer to maintain a 26% effective rate, including the original 16% and the new 10% baseline tariff imposed in April. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has also proposed a cap of 10% and requested an extension of the pause.
In a personal letter to U.S. President Donald Trump, Chief Adviser Professor Muhammad Yunus urged reconsideration of the tariffs, pointing to Bangladesh’s growing imports of U.S. products, including liquefied natural gas, cotton, wheat, and medical equipment, as evidence of goodwill and economic interdependence. The letter also emphasized Bangladesh’s tariff-lowering measures and efforts to remove non-tariff barriers on U.S. goods, while referencing the upcoming launch of Starlink in Bangladesh and additional trade facilitation measures.
Data from the USTR shows that in 2024, U.S. goods exports to Bangladesh totaled $2.2 billion, while imports from Bangladesh reached $8.4 billion, creating a $6.2 billion trade deficit. Bangladesh’s proposals aim to narrow this gap by boosting U.S. exports and maintaining favorable market access for its own goods.
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