Washington, D.C. | July 8, 2025
In a strongly worded letter dated July 7, 2025, U.S. President Donald J. Trump has announced a new tariff policy targeting Bangladeshi exports to the United States, citing an “unsustainable trade deficit” as a major threat to the American economy and national security.
Addressed to Muhammad Yunus, the Chief Advisor of the People’s Republic of Bangladesh, the letter warns that starting August 1, 2025, the United States will impose a 35% tariff on all Bangladeshi products entering the American market. This new tariff will be separate from all existing sectoral tariffs. Furthermore, any attempt to bypass the tariff through transshipment will trigger even higher duties.
“Our relationship has been, unfortunately, far from reciprocal,” Trump writes, accusing Bangladesh of maintaining long-standing tariff, non-tariff policies, and trade barriers that contribute to the trade imbalance.
The U.S. president offers Bangladesh a path to tariff relief—if Bangladeshi companies move manufacturing operations to American soil or open their markets to U.S. exports by dismantling trade restrictions.
“If you decide to build or manufacture products within the United States… we will do everything possible to get approvals quickly, professionally, and routinely — in a matter of weeks,” the letter assures.
In what many analysts interpret as a veiled threat, the letter also warns that any increase in Bangladeshi tariffs on U.S. goods will be met with proportional retaliation, adding to the already steep 35% charge.
President Trump characterizes the U.S. as the “Number One Market in the World” and expresses willingness to continue the trading relationship if Bangladesh takes steps to open its economy.
“You will never be disappointed with The United States of America,” the letter concludes, though it stresses that tariffs may still be “modified, upward or downward,” depending on future relations.
This move has already sparked widespread concern among Bangladeshi exporters, particularly in the garments and textile sector, which relies heavily on the U.S. market. Economists warn that such a tariff could have a severe impact on Bangladesh’s export earnings, trade balance, and overall economic stability.
As of now, the Government of Bangladesh has not issued an official response. However, political observers say this development could significantly reshape Dhaka-Washington trade ties, especially as Muhammad Yunus leads a transitional government amid ongoing political reforms.
