Washington, D.C., July 30, 2025 — Bangladesh may soon receive significant relief from steep U.S. retaliatory tariffs, according to optimistic signals from the first day of the third round of bilateral trade talks held in Washington. Commerce Secretary Mahbubur Rahman announced that the U.S. Trade Representative (USTR) officials have shown a willingness to reduce the recently imposed 35% countervailing duty on Bangladeshi exports.
However, sources involved in the talks revealed that Bangladesh may have to pay a steep price in other sectors in exchange for tariff relief. The interim government led by Muhammad Yunus has reportedly agreed, behind closed doors, to purchase 25 aircraft from U.S.-based Boeing at an estimated cost of US$5 billion—an acquisition critics argue is unnecessary.
Additionally, Bangladesh has accepted terms to import 700,000 tons of wheat annually from the U.S., along with various products including soybeans, LNG, cotton, and military equipment. The full scope of commitments made during these secret negotiations with the U.S. remains unclear.
The meeting, which took place on Tuesday from 12:30 PM to 5:30 PM local time (3:30 AM to 8:30 AM Bangladesh time), was led by the army backed interim government’s Trade Adviser Sheikh Bashir Uddin.
The Bangladesh delegation also included National Security Adviser Khaleelur Rahman, Commerce Secretary Mahbubur Rahman, Additional Secretary Nazneen Kauser Chowdhury, and senior officials from the Bangladesh Embassy in Washington. On the U.S. side, Assistant U.S. Trade Representative Brendan Lynch headed the dialogue.
Background to the Tariff Dispute
On April 2, 2025, the U.S. had announced counter-tariffs on 60 countries, including Bangladesh, citing trade imbalances. Although the decision was temporarily suspended for three months on April 9, the USTR reaffirmed on July 8 that a 35% tariff on Bangladeshi products would take effect starting August 1.
Currently, Bangladeshi goods entering the U.S. face an average tariff of 15.5%. With the new tariff, the burden would spike to over 35%, raising concerns among exporters and economists that it could severely disrupt the country’s trade balance and garment sector competitiveness.
Dhaka’s Diplomatic Push
To avert the crisis, Bangladesh submitted a formal position paper on July 23, urging reconsideration. In it, the country highlighted its relatively small trade surplus with the U.S.—about $6 billion—compared to Vietnam’s $123 billion. Bangladesh also committed to increasing imports from the U.S., including high-value items like:
- 25 Boeing aircraft
- 3.5 million tons of wheat over five years
- Liquefied natural gas (LNG), soybean, cotton, and defense equipment
These planned purchases aim to reduce the trade gap and create a more balanced economic partnership.
Expectations and Outcomes
Commerce Secretary Rahman expressed confidence:
“We expect a considerable reduction in tariffs, although an exact figure is yet to be finalized. Talks are ongoing and we hope for positive developments.”
According to ministry officials, the revised tariff for Bangladesh may fall between 15% and 20%—comparable to concessions granted to countries like Japan (15%), the EU (15%), Vietnam (20%), and the UK (10%).
The third round of dialogue will conclude on Thursday. If successful, the deal could safeguard Bangladesh’s position in the U.S. market and prevent export setbacks, especially in key sectors like ready-made garments (RMG), which account for more than 80% of exports to the U.S.
