Key Meeting in the U.S. Today on Trump-Era Tariff Strategy

ছবিঃ সংগৃহীত

International Desk: Despite ongoing diplomatic discussions, the Trump administration has imposed a 35% tariff on Bangladeshi goods, sparking concern across the country's export sector. The increased tariff, set to take effect from August 1, is expected to have a severely negative impact on Bangladesh’s export earnings, according to industry insiders.

U.S. President Donald Trump formally communicated the decision in a letter to Professor Muhammad Yunus, Chief Advisor of Bangladesh’s interim government. However, the tariff is not yet final, said Economic Advisor Salehuddin Ahmed. Speaking to reporters at the Secretariat on Tuesday, he stated, “This will be resolved through one-on-one negotiations. A meeting is scheduled for today (Wednesday, July 8, U.S. time) between officials of the United States Trade Representative (USTR) and representatives from the Government of Bangladesh.”

According to reports in global media, the U.S. has announced revised tariff rates not only on Bangladesh but also on products from South Korea, Japan, and a total of 14 countries. The announcement came on Monday, just ahead of the expiration of the White House's 90-day tariff freeze. Meanwhile, the U.S. has finalized trade deals with the United Kingdom and Vietnam, and discussions with India are reportedly in the final stages.

Exporters in Bangladesh have expressed deep concern over the lack of progress in negotiations, even three months after the initial U.S. announcement of retaliatory tariffs. They warn that many factories may face existential threats if the 35% additional duty comes into force. Exporters are urging the government to prioritize resolving this issue within the next three weeks.

Sheikh Bashir Uddin, Trade Advisor to the U.S., told the media, “The issue of U.S. retaliatory tariffs is not just about taxes. It’s fundamentally a matter of trade policy, with tariffs being a consequence. Solving this problem will involve revisiting broader trade policy issues.” He added that Bangladesh conducts its trade in accordance with WTO regulations, and resolving the U.S. tariff issue may require policy adjustments that apply universally, including to the U.S.

According to the National Board of Revenue (NBR), Bangladesh exported goods worth $8.69 billion to the U.S. in the recently concluded 2024–25 fiscal year, accounting for over 18% of the country’s total export earnings. Over 87% of this export revenue came from ready-made garments (RMG).

In his letter, President Donald Trump stated:
"From August 1, 2025, we will impose a 35% tariff on all categories of goods imported into the U.S. from Bangladesh. This tariff will be in addition to existing sector-specific duties."
He also noted that the decision was made to address the growing trade deficit, but hinted at flexibility:
"If Bangladesh opens its markets to the U.S. and removes trade barriers, this decision may be reconsidered."

Trade experts warn that Bangladeshi products currently face an average 15% duty in the U.S. market. With the additional 35% retaliatory tariff, the total duty would rise to around 50%, which could lead U.S. importers to cancel orders and potentially force smaller factories in Bangladesh to shut down. The ripple effects may even extend to the European Union market, they say.

The U.S. is Bangladesh’s single largest export destination. According to NBR, the country exported $8.69 billion worth of goods to the U.S. in FY2024–25, while the Export Promotion Bureau (EPB) puts the figure at $8.76 billion. More than 87% of these exports consist of garments, followed by caps, leather shoes, home textiles, wigs, and other leather goods.

When asked for comment, BGMEA President Mahmud Hasan Khan said on Tuesday, “We are deeply concerned about the U.S. retaliatory tariffs. From the beginning, we have requested the government to give utmost importance to negotiations with the U.S. However, we feel the business community has been kept in the dark about the progress of these talks.”

He further urged the government to engage professional lobbyists and include private sector stakeholders in the negotiation process.