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Saturday, 02 Aug 2025

Trump administration reduces tariffs on Bangladeshi goods to 20%

News Desk
Published: Saturday, August 2, 2025 08:21 AM
Trump administration reduces tariffs on Bangladeshi goods to 20%

After talks and negotiations, the Trump administration has reduced the US tariffs on Bangladeshi products to 20 percent from the initially proposed 35 percent.

The US announced the decision after a third and final round of talks. The Trump administration held a meeting with a Bangladeshi delegation in Washington, DC from 1pm to 3pm local time on Thursday (11pm-1am Bangladesh time) before announcing the decision around 6am on Friday Bangladesh time.

An executive order announcing the fresh tariffs was issued on the White House website, listing the levels levied on products from each country. Bangladesh seems to be in a more advantageous position than many other countries.

The revised rates were announced after a Bangladeshi delegation led by Commerce Advisor Sheikh Bashir Uddin and also including National Security Advisor Khalilur Rahman, Commerce Secretary Mahbubur, and Additional Secretary Nazneen Kawshar Chowdhury met with the Trump administration and United States Trade Representative.

"A 20 percent tariff will be imposed on Bangladesh," said Golam Mortoza, minister (Press Wing) of the Bangladeshi Embassy in Washington.

The Trump administration has also imposed a 25 percent tariff rate on Bangladesh's competitors India, 19 percent on Pakistan, Indonesia and Cambodia, and 20 percent on Vietnam.

This means that US buyers will pay a lower markup for Bangladeshi goods than Indian goods.

Stakeholders believe that the comparative advantage will allow Bangladesh's garment exports to the US to increase further in the future.

Another team from the Ministry of Commerce in Dhaka was involved online to assist the team that was negotiating with the US. This team did not participate in the main meeting held with the US delegation, but provided necessary information swiftly at request.

A top official from the Ministry of Commerce told bdnews24.com, on condition of anonymity, about the progress of the talks that began last Tuesday, “Thorough discussions are underway on many issues. They are asking for information, and Bangladesh has provided its explanations. So far, most of the issues have been agreed upon.

Bangladesh has objected to a few issues, but it will not have much impact on the main discussions. The commerce secretary said they are optimistic that the tariff talks will be successful.”

The US has signed a “non-disclosure agreement” with Bangladesh on tariff discussions. For this reason, the US has objected to publishing information or speaking to the media about any of the issues discussed in the meeting until they are finalised.

The commerce advisor also brought along three representatives from business organisations during the trip to the US. These representatives will discuss with US businessmen the process of increasing US exports of wheat, cotton and soybean oil to Bangladesh. They are not attending any of the trade talks with the US government.

The US had initially announced an additional 35 percent tariff on Bangladeshi products, which was supposed to take effect on Aug 1. Until now, Bangladeshi products entering the country had an average tariff rate of 15 percent levied against them.

As part of its negotiations to lower the tariff, Bangladesh announced duty exemptions on 626 US products in the national budget. Bangladesh also decided on deals to buy wheat and soybean oil from the US for the Trading Corporation of Bangladesh to reduce the trade deficit between the two countries. The government has also taken the initiative to increase cotton imports for the private sector. It also placed an order for 25 aircraft from the US manufacturer Boeing.

These steps, in addition to a new trade package, were part of the Bangladeshi delegation’s efforts to ease the trade talks.

HN/SA/MM

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