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[🇧🇩] Trump's Victory/Tariff/ Bangladesh

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G Bangladesh Defense
[🇧🇩] Trump's Victory/Tariff/ Bangladesh
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Form a task force for fairer trade talks with US: ICCB
The chamber held its 30th annual council in Dhaka

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The government should form a task force under the commerce ministry to negotiate fairer trade terms with the Trump administration and ensure continuity of access for Bangladesh's exports to the American market, the International Chamber of Commerce–Bangladesh (ICCB) said today.

The suggestion comes as the government is set to resume the third and final round of tariff negotiations with the United States Trade Representative on July 29, in its efforts to secure a much lower tariff than the 35 percent expected to take effect from August 1, unless a deal is reached.

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The proposed tariff on Bangladesh's exports to the US could severely affect garment exports and jobs, the ICCB said in a statement following its 30th annual council held in Dhaka.

ICCB President Mahbubur Rahman presented a comprehensive report on the evolving global and national economic landscape and its implications for Bangladesh.

The ICCB said the global backdrop remains unstable—marked by the Red Sea crisis, ongoing wars in Ukraine and the Middle East, and a resurgence of economic nationalism, especially following the return of Donald Trump to the US presidency.

Inflationary pressures and protectionist policies risk fragmenting global supply chains—an alarming trend for developing economies like Bangladesh.

"In this context, Bangladesh's economy faces significant headwinds," it said.

"A major concern is the fragile state of Bangladesh's financial sector," said the ICCB, citing high default loans, which rose to roughly one-fourth of the total outstanding loans in March 2025.

The ICCB council also highlighted several key challenges, including energy security and fiscal pressure.

It said rising costs from increased reliance on imported fossil fuels and currency depreciation require urgent domestic exploration and investment in renewables.

With a tax-to-GDP ratio below 10 percent, revenue mobilisation remains weak.

"The restructuring of the National Board of Revenue is expected to improve efficiency and fiscal space."

The chamber said Bangladesh faces serious risks from floods, droughts, and salinity intrusion due to climate change.

Moreover, foreign direct investment remains far below regional peers such as Vietnam.

"Export reliance on garments must be reduced by promoting sectors like pharmaceuticals, agro-processing, and IT."

The ICCB urged swift action to strengthen national cybersecurity infrastructure and regulation.

The chamber also addressed the implications of Bangladesh's planned graduation from least developed country status by November 2026.

The country risks facing tariffs of up to 11.5 percent in major markets such as the European Union and the UK, the chamber said, emphasizing the importance of a transition strategy to safeguard export competitiveness and maintain foreign investment flows.

High Commissioner of Brunei Darussalam Haji Haris Bin Haji Othman, Ambassador of Myanmar U Kyaw Soe Moe, Chargé d'Affaires of Argentina Maximiliano Romanello, and Senior Economic Officer of the Asian Development Bank Barun Kumar Dey attended the council meeting as special guests.​
 

Govt delegation to visit US Monday for 3rd round of tariff talks

FE ONLINE REPORT
Published :
Jul 27, 2025 14:10
Updated :
Jul 27, 2025 16:10

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A delegation from the Bangladesh side is expected to visit the USA tomorrow (Monday) to resume the third round of negotiations with the United States Trade Representative (USTR) to reduce the jacked-up tariff slapped on products exported to the US market from Bangladesh.

Third round meeting on tariff imposed by the US is expected to be held on July 29-30 in Washington DC, US.

Commerce Secretary Mahbubur Rahman told reporters on Sunday at his secretariat office.

National Security adviser, commerce adviser, commerce secretary and additional secretary of the commerce ministry will leave Dhaka for the US tomorrow afternoon.​
 

ADB warns US tariffs could reduce Bangladesh's GDP growth

FE ONLINE DESK
Published :
Jul 27, 2025 13:08
Updated :
Jul 27, 2025 13:08

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The Asian Development Bank (ADB) has warned that Bangladesh's GDP growth could be negatively affected by the United States’ proposed 35 per cent retaliatory tariff.

The bank said the growth forecast for the fiscal year (2025–26) has been revised downward, mainly due to a slowdown in the export and industrial sectors, as well as the potential effects of the US tariffs. However, the ADB did not specify a projected growth rate.

The concern was raised in the July edition of the Asian Development Outlook.

The tariff, set to take effect on August 1, poses risks particularly to Bangladesh’s garment sector and labour market, according to S&P Global.

Further discussions between Bangladesh and the United States Trade Representative (USTR) are scheduled for July 29 in an attempt to negotiate a reduction in the proposed tariff.

Despite these concerns, the US-based credit rating agency has maintained Bangladesh’s credit outlook as “stable.”

On Thursday (July 24), the agency released a report maintaining Bangladesh’s long-term sovereign credit rating at 'B+' and the short-term rating at 'B'.

The agency also noted that the upcoming national election in 2026 could be a pivotal moment in shaping the country's economic trajectory.​
 

Reciprocal tariffs
Bangladesh to purchase 25 Boeing aircraft from the US


Staff Correspondent Dhaka
Updated: 27 Jul 2025, 18: 29

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Boeing aircraft Courtesy of Bangladesh Biman

As part of negotiations over the reciprocal tariffs, Bangladesh has decided to purchase 25 aircraft from the US aviation company Boeing. Some of these aircraft are expected to be delivered within the next one to two years.

Bangladesh took the decision to purchase the aircrafts as part of the ongoing trade talks with the United States regarding reciprocal-tariff. Commerce Secretary Mahbubur Rahman shared this information with journalists today, Sunday, at the Secretariat.

Mahbubur Rahman added that a delegation from Bangladesh will leave for the United States tomorrow, Monday to hold renewed discussions on the issue of reciprocal tariffs.

A meeting with the US side is scheduled for the day after tomorrow. Apart from the decision to purchase aircraft, another contract has been finalised to import wheat from the United States, he confirmed.

Speaking to journalists, the commerce secretary said, “After receiving the draft of the tariff agreement, we have worked on it several times. In addition to online talks, there have been two rounds of direct discussions in Washington. Following meetings with ministries concerned and stakeholders, we conveyed our final position to the United States on 23 July. Afterwards, we requested them for a fresh meeting date.”

Mahbubur Rahman noted that in response to this request, the office of the United States Trade Representative (USTR) has scheduled in-person meetings on 29 and 30 July. Bangladesh’s delegation to the talks will include the commerce adviser, security adviser, and the commerce secretary.

The commerce secretary added, “There might be another meeting there on 31 July. The Bangladeshi delegation will depart for the US tomorrow evening. Since discussions with the US are ongoing, we believe the outcome regarding tariffs will likely be announced by the deadline of 1 August.”

When asked about the purchase of Boeing aircraft, Mahbubur Rahman clarified, “The business of Boeing aircraft is not run by the US government, rather it is run by the Boeing Company. Bangladesh has placed a purchase order for a total of 25 Boeing aircraft. Other countries have also made similar orders. For example, India and Vietnam each have ordered 100 aircraft while Indonesia has ordered 50.”

He added, “Now, Boeing will deliver according to its production capacity. It will take long to receive the ordered aircraft. The company will supply aircraft either in the serial the orders were placed or based on their business policies. Bangladesh needs several Boeings urgently. A few aircraft may be delivered within the next one or two years.”

Highlighting the need to expand Biman Bangladesh Airlines’ fleet, the commerce secretary further stated, “The government has had this plan for quite some time now. Initially, there was an order for 14 Boeing aircraft. With the reciprocal tariff issue, that number has now been increased to 25.”

Speaking on the topic of importing wheat from the US, Mahbubur Rahman stated that around nine million (90 lakh) tonnes of wheat are imported annually in the country both by the public and private sectors. And, a deal to import wheat from the US has been finalised now.

In addition, initiatives have been taken to import soybeans and cotton in the private sector. Business representatives will be sitting with US companies to discuss soybean imports. Talks regarding cotton imports have already reached the final stage, he added.

The commerce secretary noted that the United States currently has an overall trade deficit of USD 1.3 trillion with countries around the world. He said their aim is to reduce this deficit, which is why they have imposed the reciprocal tariffs.​
 

Tariff talks: Positive outcome a must for Bangladesh

Mir Mostafizur Rahaman
Published :
Jul 29, 2025 00:21
Updated :
Jul 29, 2025 00:21

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As Bangladesh braces for the third round of negotiations with the United States, starting from today (Tuesday), the stakes have never been higher. The escalating tariff crisis, triggered by the Trump administration's decision to impose a nearly 50 per cent reciprocal tariff on Bangladeshi exports -- primarily ready-made garments and leather goods -- has rattled the foundations of the country's trade-based economy. For Bangladesh, this is not merely a trade dispute but a litmus test of its diplomatic acumen, trade resilience, and long-term economic strategy.

The first two rounds of talks failed to produce tangible outcomes, leaving exporters, businesses, and policy circles disillusioned and frustrated. Many economists and business leaders have begun to publicly criticise the government's negotiation strategy, calling it inadequate in the face of mounting economic pressure. Against this tense backdrop, the latest round of negotiations offers a glimmer of hope. But expectations are now tempered by urgency.

If the U.S. proceeds with enforcing a 50 per cent tariff on Bangladeshi goods starting August 1 -- as declared in a formal letter from President Donald Trump to Chief Adviser Dr. Muhammad Yunus -- the consequences could be economically catastrophic. The ready-made garment (RMG) and leather sectors, which collectively constitute the lion's share of Bangladesh's export earnings and employ millions, will be hit the hardest. A sharp rise in prices would diminish their competitiveness in the U.S. market, which is currently one of Bangladesh's largest export destinations.

Moreover, such a tariff spike would inevitably cause order cancellations, job losses, factory shutdowns, and potential labor unrest. In an export-driven economy where garments alone account for over 80 per cent of total export revenue, even a marginal disruption sends shockwaves across the macroeconomic spectrum. A 50 per cent tariff is not just a trade policy -- it is a threat to social stability.

Given this context, the ongoing negotiations is not simply another round of routine diplomatic engagement. It represents a high-stakes attempt to avert a crisis that could derail years of economic progress. If the U.S. agrees to scale back the proposed tariff to 18-20 per cent -- a figure that is being circulated as a possible compromise -- it would be seen as a major diplomatic victory for Bangladesh.

More importantly, such a reduction would provide breathing space for exporters and restore investor confidence. In a volatile global market, predictability and policy stability matter as much as price. A successful negotiation outcome would reaffirm Bangladesh's relevance and reliability in international trade partnerships.

While blame games are counterproductive, it is important to assess why the first two rounds failed to yield results. One factor is timing. The U.S. side, citing national emergency clauses, adopted a unilateral tone from the outset. Their decision was framed as a part of a broader recalibration of trade ties with countries perceived to be benefitting disproportionately. This created an uneven playing field for Bangladesh.

Another challenge has been the lack of clarity and strategic communication on Bangladesh's part. Critics argue that the government failed to present a cohesive, data-driven, and forward-looking case in the initial stages. Moreover, the absence of a robust lobbying effort in Washington -- unlike other trade-dependent nations -- meant that Bangladesh's narrative was underrepresented in U.S. policy circles.

To its credit, the interim government has not remained passive. Recognising the threat posed by the tariffs, Bangladesh has launched a flurry of diplomatic and commercial initiatives aimed at addressing American concerns and reducing the bilateral trade deficit.

One of the key measures has been a proactive shift in import policy. Bangladesh has initiated plans to purchase wheat, soybean, and cotton from the U.S., along with a major procurement plan involving 25 aircraft from Boeing. These steps are expected to narrow the trade imbalance while also creating goodwill in Washington's political economy.

Additionally, 600 acres of land have been allocated in the Mirsarai Economic Zone for the storage and maintenance of imported cotton -- signalling the seriousness of Bangladesh's commitment to long-term trade reciprocity.

These strategic decisions mark a clear pivot towards rebalancing the relationship and demonstrate that Bangladesh is willing to play by global rules -- provided the playing field is plain and fair.

However, trade balances are not the only issue on the table. One of the major stumbling blocks in the negotiations has been the United States' insistence on stronger protection of Intellectual Property Rights (IPR). The U.S. has accused Bangladesh of failing to curb the circulation of counterfeit goods across a range of sectors, including garments, pharmaceuticals, consumer electronics, and software.

Although Bangladesh is already a signatory to global frameworks such as the TRIPS Agreement, the Paris Convention, and the WIPO arrangements, the U.S. maintains that enforcement remains weak and inconsistent. To address these concerns, Washington has demanded that Bangladesh sign 13 additional international treaties and conventions, along with enforcing 11 new policy commitments -- ranging from legal protection for U.S. goods to stricter anti-counterfeiting regulations.

This presents a complex challenge. On one hand, it is crucial for Bangladesh to align with global standards and protect IPR to attract high-value foreign investment. On the other hand, the legal and administrative overhaul required to meet U.S. demands is neither simple nor immediate. IPR reform involves changes in domestic legislation, regulatory infrastructure, and inter-ministerial coordination -- all of which take time and political consensus.

Given this multilayered backdrop, what can Bangladesh realistically expect from the third round of negotiations?

First, it is unlikely that the U.S. will revoke the tariff decision entirely before August 1. However, there is a plausible path toward a phased reduction or temporary relief -- especially if Bangladesh can present a credible roadmap to address IPR concerns and continue rebalancing bilateral trade.

Second, the government must adopt a more comprehensive negotiation strategy. This includes assembling a high-powered delegation of trade, legal, and diplomatic experts who can respond convincingly to technical queries. Emotional appeals or vague promises will no longer suffice.

Third, a concrete and transparent action plan must be shared with U.S. negotiators -- one that outlines a timeline for treaty ratification, legal reforms, and anti-counterfeiting enforcement. Even partial commitments, if sincere and time-bound, can help restore trust.

Finally, Bangladesh must improve its communication efforts -- not just with U.S. policymakers, but also with the global business community. A coordinated outreach campaign showcasing the country's reform agenda, investment opportunities, and commitment to fair trade could shift perceptions and attract allies.

The latest round of negotiations will be a defining moment in the evolution of Bangladesh-U.S. trade relations. A successful outcome could stabilise export earnings, protect millions of jobs, and reposition Bangladesh as a responsible player in global trade. Failure, on the other hand, could lead to serious economic disruptions and dent the credibility of the country's diplomatic machinery.

While the road ahead is undoubtedly steep, it is not insurmountable. Bangladesh must stay focused, engage constructively, and act decisively. The world is watching -- not just for how the tariff dispute is resolved, but for how Bangladesh navigates this complex intersection of trade, diplomacy, and economic policy.

This is more than a negotiation. It is a defining test of national capacity, and one that Bangladesh must pass -- not just for the present, but for the promise of its economic future.​
 

What's in store for US-BD final round of tariff talks?

SYED FATTAHUL ALIM
Published :
Jul 29, 2025 00:17
Updated :
Jul 29, 2025 00:17

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A Bangladesh trade mission, as reported, is scheduled to meet for the third time with the Office of the United States Trade Representative (USTR) in Washington, D.C., on July 29 and July 30 to see if the 35 per cent reciprocal tariff that the Trump administration has imposed on Bangladesh's exports to the US market could be lowered. There is the possibility of holding yet another round of meeting with the USTR on July 31.The US reciprocal tariff rate is set to take effect on August1. So, it is going to be a hectic last minute effort on the part of the Bangladesh trade delegation led by Commerce Adviser along with the National Security Adviser and comprising the commerce secretary and additional commerce secretary as its members. Notably, Bangladesh trade team has, meanwhile, finished two rounds of talks with the USTR following US president Donald Trump's July 8 letter to Bangladesh's Chief Adviser Dr Muhammad Yunus about the imposition of reciprocal tariff at the rate of 37 per cent on Bangladeshi exports to America. With no further reassurance from the USTR during those two rounds of trade talks, except for an exemption of just 2 per cent from original reciprocal tariff so imposed, Bangladesh is trying its luck for the third time. Best of luck! But when added to the currently existing duty at 15per cent on the entry of Bangladesh-origin products, especially Readymade Garment (RMG), into the US market, the total tariff will come to 50 per cent after August 1.

In response, Bangladesh sent its position paper on July 22 and proposed starting next and final rounds of tariff talks on July 26. However, USTR fixed July 29 as the next date for the resumption of talks. It is further reported that the government is going to purchase 25 more Boeing aircraft to add to Biman's existing fleet. But the Boeing purchase is purely a company level deal between Boeing and Biman, and not part of the intergovernmental tariff negotiations, the commerce secretary is learnt to have explained at a Press briefing. But why then Bangladesh will go for this very costly purchase of so many Boeing-made US passenger planes, since the list price of each of these different models of aircraft range from USD 217.9 million to USD 375.5 million. And that too is taking place at a time when Bangladesh's forex reserves, though now on a better footing than before, have yet to reach a comfortable level to afford such a big purchase deal. Hopefully, during actual purchase or leasing, the list prices may come down substantially due to the commissions offered by the selling company depending on market conditions, bulk purchase and so on. That the purchases will take years to materialise is also a consideration to note. Even so, it is still a challenging move that the government is making just to mollify a difficult trading partner despite what has been said to clarify the intent of the plane purchase deal. True, there was already a purchase order for 14 Boeing planes during the past government and that the present numerical strength of Biman fleet needs improvement.

But what matters here is if there is real urgency of such purchase deals. What will, for instance, the corruption-ridden public limited company, Biman, do with those additional planes when its main problems are poor management and outdated operational procedures? Is it then surprising that Biman is lagging behind its regional competitors in terms of service quality as well as business performance? It is to be noted that Bangladesh has already offered zero per cent duty facilities on imports of US-origin products including wheat, LNG, etc. That India, Vietnam and Indonesia are buying large numbers of Boeing aircraft from America and getting considerable tariff exemptions from the USTR does not necessarily mean that Bangladesh would win similar favour from the US just by plane purchase when geopolitics is also a factor. It is purely experience, efficiency and keen business acumen that matter in clinching a good business deal, not just goodwill.​
 

Team leaves for tariff talks amid cautious optimism
Deal titled 'Agreement on Reciprocal Trade Framework' likely
Bangladesh may offer additional $1.5b US imports


FE Report
Published :
Jul 28, 2025 23:49
Updated :
Jul 28, 2025 23:49

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Bangladesh is expected to assure increasing import volume from the US by US$1.5 billion over next one and a half years as part of a tradeoff package for a probable tariff deal.

An official source says Bangladesh and the US are expected to sign a deal titled 'Agreement on Reciprocal Trade Framework' if both sides are agreed on their desired demands.

A commerce ministry source gave the import-augmentation indication Monday as a high-powered government delegation left for Washington amid cautious optimism for a fair and square deal to avert the antedated 35-percent prohibitive duties on Bangladeshi exports.

Dhaka is likely to make the offer to the United States Trade Representative during the meetings on reciprocal tariff scheduled for July 29-31 in Washington, DC, he added.

The Bangladesh delegation, headed by Commerce Adviser of the incumbent interim government Sk Bashir Uddin, left Dhaka for the United States on Monday afternoon to resume the third-round negotiations with the United States Trade Representative (USTR) to avert the jacked-up tariffs slapped on products exported to the US market from Bangladesh.

The other members of the delegation are National Security adviser Khalilur Rahman, commerce secretary Mahbubur Rahman and additional Secretary Nazneen Kawshar Chowdhury.

They all are optimistic about securing a fairer tariff deal or rate during the tariff talks, sources said.

Meanwhile, Bangladesh placed order for the purchase of 25 Boeing aircraft from the US with a view to securing a fairer tariff rate from the US administration.

Earlier, Bangladesh already inked a deal with to import 0.7 million tonnes of US wheat within next five years. Of the volume, in the first year, it will import 0.220 million tonnes of the grain.

According to the Bangladesh import plans -- meant for bridging the bilateral trade gap -- the cost is estimated to come to more than $3.0 billion.

A year ago, in the fiscal year 2023-24, Bangladesh's goods worth $7.68 billion were exported. In contrast, Bangladesh imported goods worth $2.5 billion from the country in the fiscal year 2024-25.

The largest single product imported from the United States is iron scraps or iron pieces. And the single-largest export to the US is ready-made garments.

Bangladesh's several businesspersons are now staying in the USA for negotiating with their trade partners. Besides, they will discuss soybean-and wheat-import issues with respective business partners.

A senior commerce official, who is involved with the tariff issue, hopes that the US "may offer good tariff rates in favour of Bangladesh as US President Donald Trump has reduced the additional tariffs on some countries".

The commerce ministry completed discussions with the Bangladeshi businesses, economists, and relevant ministries, for feedback ahead of the third round of negotiations with the United States Trade Representative regarding the trade agreement on the reciprocal tariff imposed by the US administration.

The ministry already sat with US Wheat Associates (USW), Chevron and Excelerate Energy, US Soybean Export Council (USSEC) and US Cotton Association.

Also was sitting with the American Apparel and Footwear Association (AAFA) on July 22.

More than 100 products have been added to this list in the 2025-26 fiscal budget to provide the facility for not only the US but also other countries. Bangladesh has already kept tariffs on 190 products at zero to reduce its trade deficit with the United States.

Currently, Bangladesh levies an average of 6.0-percent duty on products imported from the United States.

On July 07 last, the Trump administration declared a plan to impose 35-percent tariff on products exported to the US market from Bangladesh, with effect from August 01, 2025.

To this end, US President Donald J Trump sent a letter to the Chief Adviser of the Bangladesh interim government, Muhammad Yunus. The new tariff is 2.0-percent lower than the initially declared rate of 37 per cent, issued three months ago, dated April 02 last. It was supposed to take effect from April 09.

The National Security Adviser and the Commerce Adviser of Bangladesh already sat in a meeting with the USTR representatives on July 03. The meeting ended sans decision.

In the meantime, various countries have completed necessary process signing bilateral agreements with the United States through negotiations. Bangladesh is also trying to strike a bilateral agreement.

That is why a delegation led by the commerce adviser held several meetings with the USTR. However, Bangladesh and the US could not agree on all issues in the last talks.

The third and final day of the second round of negotiations on the tariff issue between Bangladesh and the US concluded on July 11, 2025.

However, as several issues remained unresolved in the tariff talks, both nations decided to continue inter-ministerial discussions.​
 

Bangladesh-US third round of tariff talks set to begin in Washington

Published :
Jul 29, 2025 22:40
Updated :
Jul 30, 2025 00:42

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The third round of trade talks between Bangladesh and the United States is set to start today (July 29) in Washington DC.

Commerce Adviser Sk Bashir Uddin, who is leading the Banglagesh side, and National Security Adviser Dr. Khalilur Rahman are in the US capital for the three-day talks, UNB reports.

Based on progress made so far, Bangladesh hopes for a positive outcome from this round, said Chief Adviser’s Press Secretary Shafiqul Alam.​
 

Bangladesh to offer ‘trade package’ to US

Published :
Jul 29, 2025 17:50
Updated :
Jul 29, 2025 19:11

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The government plans to offer a “package proposal” to the United States in a bid to secure an exemption from the additional tariffs imposed by US President Donald Trump on exports.

On Tuesday, Finance Advisor Salehuddin Ahmed disclosed the development after a meeting of the Cabinet Committee on Government Purchase at the Secretariat, according to bdnews24.com.

“Our trade advisor has gone with a package. There’s more in it -- what they can buy from us,” he said.

A four-strong government delegation, comprising Commerce Advisor Sheikh Bashir Uddin, National Security Advisor Khalilur Rahman, Commerce Secretary Mahbubur Rahman, and Additional Secretary Nazneen Kawshar Chowdhury, flew to Washington on an Emirates flight Monday evening to attend negotiations with Trump administration officials over Tuesday and Wednesday.

To counter the 35 per cent Trump-era tariffs, Bangladesh has already waived duties on 626 American products. The interim administration has also decided to import wheat and soybean oil through TCB to help reduce its trade deficit with the US. Plans are also underway to boost cotton imports from US private suppliers.

Most notably, the interim government has announced it will purchase 25 aircraft from American manufacturer Boeing in an effort to present goodwill during this high-stakes diplomatic effort.

Asked whether more such measures are in the pipeline, Salehuddin said: “Yes, there’s more, but I won’t speak about it now. I’ll share details once the team returns.”

In Tuesday’s meeting, the committee also approved the leasing of around 22.25 hectares of land at the abandoned Jalil Textile Mill in Chattogram sought by the military, but under strict conditions.

“We’ve said state land will no longer follow symbolic pricing,” Salehuddin said. “If they want it, they must pay. Symbolic pricing leads to misuse -- often they claim 100 acres [40.46 hectares] when they need only 10.”

Separately, the committee approved the purchase of fertiliser and one LNG cargo shipment from the spot market.​
 

'US-BD tariff talks concern sovereignty, economic future'
Chinese envoy tells DCAB Talks


FE ONLINE REPORT
Published :
Jul 29, 2025 17:46
Updated :
Jul 29, 2025 17:46

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Chinese ambassador to Bangladesh warned on Tuesday that the ongoing tariff negotiations between Dhaka and Washington carry significant implications for Bangladesh’s sovereignty and economic future, calling the US approach “unreasonable and unethical.”

Speaking at a session of DCAB Talks hosted by the Diplomatic Correspondents Association of Bangladesh, Ambassador Yao Wen expressed concern over the United States’ plan to impose a 35 per cent tariff on Bangladeshi exports, particularly targeting the garment and leather sectors.

“These talks, which have drawn widespread attention, concern Bangladesh’s sovereignty and economic future,” Mr Yao said. “The United States imposes a 35 per cent tariff on Bangladesh, one of the least developed countries, which is neither reasonable nor ethical.”

Mr Yao expressed Beijing’s support for Bangladesh’s right to resolve the dispute through “equal dialogue” and defended the country’s legitimate trade interests. “China supports Bangladesh in upholding WTO rules and the multilateral trading system and in maintaining normal trade and exchanges,” he said.

He warned against the global consequences of trade unilateralism. “If international trade returns to the law of the jungle, where the strong prey on the weak, no country will remain unscathed,” he said.

In a strongly worded statement, Mr Yao criticised the US policy of “reciprocal tariffs,” which he described as “a textbook case of trade bullying.”

“Since the Trump administration took office, the US has rolled out a series of unilateral tariffs. These blatantly violate WTO rules, disrupt global industrial and supply chains, and hinder world economic recovery. They are irresponsible, unpopular, and unsustainable,” he said.

“The US is now weaponising tariffs to strong-arm others into so-called reciprocal tariff negotiations. This is nothing but hegemonic politics and unilateral bullying disguised as reciprocity,” Mr Yao added.

In response to a question about Bangladesh’s upcoming elections, Mr Yao said China supports a “smooth, successful, and participatory” electoral process.

“The timing of the election is for the people of Bangladesh to decide—not any foreign country,” he said.

He also confirmed that China supports the interim government’s efforts to ensure stability and continue along a development path aligned with Bangladesh’s national priorities.

Mr Yao further revealed that China’s engagement with the opposition Bangladesh Nationalist Party (BNP) and the Islamist party Jamaat-e-Islami had been “hindered and prevented” over the last decade. “You know it!” he remarked cryptically when pressed for clarification.

He added that recent visits by BNP, Jamaat, and the National Citizen Party to China signal renewed openness and engagement.

“China has always engaged with major political parties in Bangladesh, and now there is a chance for that dialogue to resume,” he said.

Ambassador Yao said China remains committed to deepening cooperation with Bangladesh across multiple sectors—from trade and investment to climate response and education.

“China is willing to always be a trustworthy good friend, good neighbour, and good partner of Bangladesh,” he said.

“We are ready to strengthen exchanges on governance experience and share experience in economic development, poverty alleviation, disaster prevention and mitigation, and climate change response.”

China has granted zero-tariff treatment to 100 per cent of taxable items from Bangladesh until 2028 to support the country’s smooth graduation from its Least Developed Country (LDC) status in 2026.

In the first quarter of this year, Chinese investment in Bangladesh surged 3.7 times year-on-year. Since August, nearly 20 Chinese companies have signed agreements with Bangladeshi counterparts, with investment intentions exceeding $400 million.

“China has become the largest source of FDI in Bangladesh since the interim government took office,” Mr Yao said.

On a more sombre note, Mr Yao confirmed that China will assist Bangladesh in investigating the crash of a China-made Air Force jet that struck a school building in Dhaka’s Uttara area on 21 July, killing 34 people, most of them children.

“We are sending a technical team to Dhaka on Wednesday in response to Bangladesh’s request,” he said, adding that China expects a “comprehensive and impartial” investigation into the tragedy.

In a show of solidarity, China dispatched an emergency medical team of five burn-specialist doctors and nurses to Dhaka to treat survivors of the crash.

Highlighting growing trade relations, Mr Yao noted that Bangladeshi mangoes have recently entered the Chinese market for the first time, and China intends to expand its import portfolio further.

He added that weekly air traffic between the two countries now exceeds 68 flights, carrying more than 13,000 passengers. Approximately 15,000 Bangladeshi students are currently pursuing higher education in China, he said.

“Regardless of any domestic changes in Bangladesh, China will remain committed to strengthening bilateral trade and investment cooperation and supporting Bangladesh in its efforts toward sustainable development,” the ambassador reiterated.

Ambassador Yao also addressed recent trilateral cooperation talks involving China, Bangladesh, and Pakistan. A vice foreign minister-level meeting was held in Kunming to revive stagnant cooperation in South Asia.

“The objective is to enhance regional collaboration,” he said. When asked why only two South Asian countries were involved, he noted that China had briefed other countries in the region.

He acknowledged Bangladesh’s growing significance in China’s regional diplomacy. “Bangladesh is an important member of the Global South and a key development partner in the region. China places Bangladesh in a leading position in its neighbourhood diplomacy.”

“We support Bangladesh in safeguarding its sovereignty, independence, and territorial integrity and in opposing external interference,” he added.​
 

China to support Bangladesh to counter US tariffs
Diplomatic Correspondent Dhaka
Published: 29 Jul 2025, 22: 36

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Chinese Ambassador to Bangladesh Yao Wen addresses the “DCAB Talk” event organised by the Diplomatic Correspondents Association, Bangladesh (DCAB) at National Press Club in Dhaka on 29 July 2025. Collected

Chinese Ambassador to Bangladesh Yao Wen said China views the imposition of tariffs by the United States as part of its effort to expand dominance, and his country will assist Bangladesh to offset the impact of the US’ reciprocal tariffs.

Yao Wen made the remarks at the “DCAB Talk” organised by the Diplomatic Correspondents Association, Bangladesh (DCAB) at National Press Club in Dhaka on Tuesday.

Replying to a query on the US-imposed tariffs, the Chinese ambassador said that China opposes such counter-tariffs. China sees these US measures as part of an attempt to assert hegemony. The imposition of such tariffs undermines the World Trade Organization (WTO) framework and is not conducive to international trade. This is unreasonable, unfair, and unjust, he added.

Ambassador Yao Wen further said China will support Bangladesh under the WTO framework to mitigate the adverse effects of the US’ reciprocal tariffs. He also emphasised the need to expand Bangladesh’s export markets and enhance its export capabilities.

Bangladesh is on track to graduate from the list of Least Developed Countries (LDCs) by 2026. China will continue to provide Bangladesh with duty-free access to 100 per cent of its products until 2028 in order to support this transition,.

DCAB president AKM Moinuddin presided over the event and general secretary Arifuzzaman Mamun delivered the welcome address.​
 

3rd-round tariff talks enter 2nd day
Staff Correspondent 30 July, 2025, 23:58

The third round of tariff talks of Bangladesh with the United States entered the second day on Wednesday, just one day before a steep 35 per cent tariff on Bangladeshi exports to the US market comes into effect.

The Bangladeshi delegation was set to join the second day’s talks with the Office of United States Trade Representative, responsible for developing and promoting US foreign trade policies, at 9:00am (Washington time) on Wednesday, in the hope of reducing the rate of the ‘reciprocal tariff’, according to a social media post by Golam Mortoza, press minister at the Bangladesh embassy in Washington.

On July 8, US president Donald Trump imposed the 35 per cent tariff on Bangladeshi exports, with effect from August 1, on top of sectoral tariffs of up to 15-16 per cent.

The first day of the third and final round of the tariff talks ended with positive responses, said commerce secretary Mahbubur Rahman on Wednesday morning.

Talking to New Age at about 8:00am (Bangladesh time) from Wessington, he said that they had a fruitful discussion with the US on Tuesday.New Age specials

‘As they invited us here in person and we have got positive responses from them, we are hopeful that the tariff imposed on Bangladesh would be reduced,’ he added.

Meanwhile, on Wednesday, in a post on Truth Social, Trump slapped India with a 25 per cent ‘reciprocal tariff’ along with penalty, mainly for importing military equipment and energy from Russia and China.

Mahbubur also said that the United States Trade Representative usually did not hint at anything before everything became official, but their responses indicated that the tariff on Bangladesh would be reduced.

‘We hope the tariff on us would be reduced significantly, but it is not possible to say exactly by how much at this moment,’ he said, adding that they had meetings scheduled for the second day.

The first day of the third round of tariff negotiations began at 12:30pm (Washington time) or 10:30pm (Dhaka time) on Tuesday and ended at 5:30pm (Washington time) on Tuesday or 3:30am on Wednesday (Dhaka time).

Led by commerce adviser Sk Bashir Uddin, national security adviser Khalilur Rahman, commerce secretary Mahbubur Rahman and additional secretary Nazneen Kawshar Chowdhury were also present at the meeting. Some officials also joined virtually.

On the US side, the talks were led by US assistant trade representative Brendan Lynch.

The embassy of Bangladesh in Washington coordinated the negotiation process.

The Bangladeshi delegation, led by the commerce adviser, left Dhaka for Washington Monday evening.

A number of Bangladeshi businesses also travelled to Washington, though they would not attend the meeting. They would seek business-to-business negotiations with US businesses.

Earlier, the second round of tariff discussions ended on July 11, but failed to produce a consensus from either side regarding the tariff policy.

In 2024, Bangladesh exported goods worth about $8.4 billion to the US, of which $7.34 billion accounted for readymade garments. In the year, the country imported US goods worth $2.2 billion.

The US is pressuring Bangladesh to lower the trade deficit in order to secure a ‘favourable’ tariff rate.

Bangladesh plans to purchase 25 Boeing aircraft as part of the trade negotiations with the US.

Earlier, on July 20, Bangladesh signed a memorandum of understanding with the US to import 7 lakh tonnes of wheat annually for the next five years to reduce the trade deficit with the US.

On July 23, the interim government decided to procure 2.20 lakh tonnes of wheat from the US at $302.75 a tonne.

Recently, the Trump administration has revised down the tariffs on Indonesia and Vietnam to 19 per cent and 20 per cent per cent, respectively. Both the countries are Bangladesh’s competitors in the global RMG export market.

Earlier, on April 3, the US had imposed a 37 per cent ‘reciprocal’ tariff on Bangladeshi exports, but on April 9 the US president declared a pause on the tariff for three months.

After the pause, Bangladesh entered into the first round of tariff talks with the US.​
 

Trump tariff and the impending catastrophe for many nations

Published :
Aug 01, 2025 00:35
Updated :
Aug 01, 2025 00:35

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The so-called "reciprocal tariff" policy of the U.S. administration has already emerged as a potentially destabilising force in global trade -- arguably more damaging than any recent disruption. While third world countries are likely to suffer the worst consequences, particularly those like Bangladesh that enjoy a trade surplus with the U.S., others -- even those with minimal trade ties to the U.S. -- may also face significant fallout. The Asia Floor Wage Alliance (AFWA), a coalition of trade unions representing garment workers across Asia, has raised the alarm, warning that the tariff imposition could trigger a humanitarian crisis and deepen inequality in the global garment industry. In a strongly worded statement, the alliance called for brand accountability, asserting that companies benefiting from outsourced production must not remain silent when tariffs result in factory closures and mass layoffs. "The U.S. government's recent imposition of tariffs on apparel imports from Asia endangers the livelihoods of millions of garment workers -- most of them women -- who already earn poverty-level wages," the statement noted.

Drawing unsettling parallels with the COVID-19 pandemic -- when global brands abandoned their responsibilities, leading to widespread layoffs, unpaid wages, and factory shutdowns -- AFWA cautioned that a similar catastrophe looms. Without proactive intervention, history may well repeat itself. AFWA's Deputy International Coordinator, Wiranta Ginting, emphasised that tariffs should not be wielded as weapons in geopolitical conflicts. While tariffs can be legitimate fiscal tools, they are now being used as punitive measures with little regard for consequences. Realistically, reshoring apparel manufacturing to the U.S. is economically unfeasible due to high production costs, which would render clothing unaffordable for domestic and international consumers alike. AFWA also pointed out that the current U.S. tariff policy does not serve the interests of American labour. Instead, it punishes Asian economies for geopolitical reasons and risks destabilising the region's production base. The alliance warned that such disproportionate measures could incite unhealthy competition among countries and fragment the garment workforce.

In addition to condemning protectionist trade policies, AFWA underscored the need to hold global brands accountable for their sourcing decisions. Rejecting what it described as an exploitative global trade model that enriches brands while plunging workers into poverty and debt, AFWA said that brands must not be allowed to profit from low-wage labour and then disappear when crisis strikes, emphasising that governments should not weaponise trade at the expense of human lives. The alliance called for a vision rooted in balanced industrial development and equitable revenue distribution.

There is little room to dispute the merit of AFWA's concerns. The so-called reciprocal tariff undermines the rule-based international trading system, one that strives for equity and cooperation. As things stand, the prospects of avoiding a looming crisis appear slim. For Bangladesh, the situation is particularly alarming. With an economy heavily reliant on apparel exports -- and the U.S. as its largest single market -- the fallout from these tariffs could prove devastating.​
 

US cuts tariffs on Bangladesh to 20% after talks

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The United States has slashed its tariff rate on goods from Bangladesh to 20 percent, a significant reduction from the previous 35 percent, after a final round of intense negotiations in Washington.

The White House confirmed the new rate on Friday, a move expected to provide a substantial boost to Bangladeshi exports, particularly in the crucial garment sector. The breakthrough came after high-level discussions between Bangladeshi officials and the Office of the United States Trade Representative, the main body overseeing US trade policy.

The deal for Dhaka was secured just hours before a midnight deadline set by President Donald Trump and stands out against a broader protectionist trade policy.

In a separate announcement, the White House said Trump would maintain a minimum global tariff of 10 percent, while imports from countries holding trade surpluses with the US would face duties of 15 percent or higher.

The successful negotiation for Bangladesh presents a stark contrast to the administration's treatment of other key trading partners, notably India.

Washington has threatened New Delhi with tariffs of 25 percent, a figure that would single it out more severely than most major economies, with the exception of Canada, which was hit with 35 percent tariff rate​
 

Tariff cut brings relief, but buyers must bear the cost: BGMEA chief

FE ONLINE DESK
Published :
Aug 01, 2025 22:36
Updated :
Aug 01, 2025 22:36

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The President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Mahmud Hasan Khan, has said the recent reduction of US counter-tariffs from 35% to 20% offers relief to the apparel sector after months of uncertainty.

“This added tariff must be borne by the importers and buyers, not the suppliers,” he stated in a written statement on Friday (August 01), as per local media reports.

Khan noted that while Bangladesh faces 1% higher tariffs than Pakistan, it enjoys a 5% lower rate than India and 10% lower than China, keeping the country competitive.

He warned, however, that buyers might reduce orders if they cannot secure extra financing, as the higher tariff affects their capital flow.

He urged BGMEA members not to absorb these additional costs and emphasised that final consumers in the US would ultimately bear the burden. He also highlighted the need for Bangladesh to meet its trade commitments to avoid future risks.​
 

CA lauds BD tariff negotiation team

FE ONLINE REPORT
Published :
Aug 01, 2025 20:10
Updated :
Aug 01, 2025 20:10

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In a message on Friday, Chief Adviser Professor Muhammad Yunus lauded the Bangladesh team for successful negotiations with their US counterpart in Washington.

“By reducing the tariff to 20 per cent, 17 points lower than anticipated, our negotiators have demonstrated remarkable strategic skill and unwavering commitment to safeguarding and advancing Bangladesh’s economic interests”, he said.

“We proudly congratulate the Bangladesh tariff negotiators on securing a landmark trade deal with the United States, a decisive diplomatic victory”.

They have been working relentlessly since February and navigated successfully through a complex negotiating process involving tariff, non-tariff and national security matters, De Yunus added.

“The agreement they negotiated preserves our comparative advantage, enhances our access to the world’s largest consumer market and safeguards our core national interests”.

“This achievement not only underscores Bangladesh’s rising strength on the global stage but also opens the door to greater opportunities, accelerated growth, and lasting prosperity”.

“The future of Bangladesh is undeniably bright. Today’s success stands as a powerful testament to the nation’s resilience and its bold vision for a stronger economy tomorrow”.​
 

Jamaat Ameer thanks President Trump for tariff cut

Published :
Aug 01, 2025 19:25
Updated :
Aug 01, 2025 19:25

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Bangladesh Jamaat-e-Islami Ameer Shafiqur Rahman on Friday thanked United States (US) President Donald Trump for his decision to lower its reciprocal tariff on Bangladeshi products from 35 percent to 20 percent.

Shafiqur Rahman also thanked the interim government led by Professor Dr. Muhammad Yunus for the landmark trade deal with the US, reports BSS.

“Alhamdulillah, the high tax rate announced by the US on Bangladesh’s export products has been reduced to 20 percent due to the effective initiatives of the Bangladesh government and the sincerity of the US government. For this, I thank President Donald Trump and Professor Dr. Muhammad Yunus’ government,” he said in a post on his verified Facebook ID.

He hoped that in the future, Dr. Muhammad Yunus and those who will come to the power of the state will maintain their honorable position and fulfill their dignified duties in the arena of world diplomacy.

The US has reduced its tariff rate on goods from Bangladesh to 20 percent, a significant reduction from the previous 35 percent, after a final round of intense negotiations in Washington.

The announcement was made by the White House today, after the final round of the talks in Washington DC between Bangladeshi officials and the Office of the United States Trade Representative (USTR), the main body responsible for overseeing US trade policy.​
 

US tariff cut on Bangladesh exports ‘satisfactory for now’, says Amir Khosru

Published :
Aug 01, 2025 17:48
Updated :
Aug 01, 2025 17:54

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BNP leader Amir Khosru Mahmud Chowdhury believes the Trump administration’s decision to reduce reciprocal tariffs on Bangladeshi exports from 35 per cent to 20 per cent is a “satisfactory outcome” for the export sector, according to bdnews24.com.

“This isn’t about victory or defeat. Given the tariff levels [facing Bangladesh's competitors], we are now in a relatively satisfactory position," the former commerce minister told reporters at his Gulshan residence on Friday.

“The tariff rate now aligns with those imposed on our competitors, and that’s acceptable. It’s satisfactory.”

However, the true implications will only become clear once the finer points of the negotiations are revealed, according to him.

“All we know is the tariff rate. Only after understanding the full scope of the negotiations can we comment further. Until we know what had to be given up in return for this reduction, we cannot assess the true impact.”

The revised tariff is part of a broader restructuring of US trade policy affecting several trading partners. For instance, the rate for Sri Lanka was lowered from 30 per cent to 20 per cent, while Pakistan’s rate dropped from 29 per cent to 19 per cent. Tariff rates for Bangladesh's other competitors Vietnam and India now stand at 20 per cent and 25 per cent, respectively.

Amir Khosru emphasised that trade deals are rarely confined to just a figure. He suggested the reduction likely came as part of a broader agreement involving other terms, such as potential US exports or specific conditions. These must be disclosed before a full evaluation can be made.

When asked if the revised tariff had brought relief to Bangladeshi exporters, he said: “The 20 per cent tariff will not hinder our export market at the moment. So for now, it’s a satisfactory outcome.”

“But there are many other aspects related to this that we don’t yet know. Once we do, we can make more informed comments.”

When asked if he saw a link between the new tariff rate and Bangladesh’s recent indication to purchase 25 Boeing aircraft from the US, he said: “Something had to be done. The entire US tariff approach is based on ensuring exports of American products. That’s the reason behind the imposition of these extra tariffs.”

“But the real discussion is about how much Bangladesh can absorb -- how much our economy and businesses can absorb. We can comment only after evaluating all of this in detail.”

He continued, “We must keep in mind that this isn’t just about tariffs. There are other elements involved that must be considered collectively. That broader perspective is vital for the days ahead.”

“For now, I believe our exporters are experiencing some relief."

He urged the interim government to provide clarity on the matter.

“We don't just trade with the US. We export to many countries. We need to evaluate where we stand globally in light of this and conduct a thorough review.”

“At the same time, we need to diversify our exports, both in terms of destinations and products. We cannot have an economy that’s overly dependent on the US. That is our challenge for the future.”

To meet the challenge, Bangladesh needs to improve its investment climate, boost public participation in the economy, and build capacity, according to Khosru.

"We need change through deregulation, reevaluation, and major reforms. That’s the direction we must take in the days ahead.”​
 

A trade triumph for Bangladesh

Published :
Aug 02, 2025 00:22
Updated :
Aug 02, 2025 00:22

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At a time when global trade tensions are running high and tariffs are being used as tools of economic pressure, Bangladesh's achievement in securing a lower duty from the United States is both remarkable and beneficial. The reduction of the reciprocal tariff to 20 per cent from the previously announced 37 per cent not only protects Bangladesh's key export sectors from sudden disruption but also strengthens its foothold in the American market. Secured after months of rigorous negotiations, this outcome positions the country favourably alongside other key competitors like Vietnam and Sri Lanka which also face the same 20 per cent rate, while larger economies like India and China will grapple with higher tariffs of 25 per cent or more. The result demonstrates both the diplomatic finesse and clear understanding of global trade dynamics by Bangladesh's negotiating team led by commerce adviser Sk Bashir Uddin. Chief adviser Prof Muhammad Yunus aptly described this as a "landmark trade deal" and a "decisive diplomatic victory" which preserves and advances the country's comparative advantage in an increasingly complex global trade environment.

From an economic standpoint, the reduced tariff acts as an important protection for Bangladesh's export-driven growth model. In particular, the ready-made garment sector which forms the backbone of the country's exports and accounts for a significant share of its shipments to the US stands to take many positives. At the very least, this effectively restores Bangladesh's export position in the $8.0 billion US market to what it was before the tariffs. The Business and Tariff Management Association (BTMA) has also noted that this outcome levels the playing field, if not tilts it slightly in Bangladesh's favour, compared to many other exporting countries. While competitors like Cambodia and Pakistan negotiated a marginally lower 19 per cent tariff, Bangladesh's larger production capacity, well-established supply chains and economies of scale in the ready-made garment sector more than compensate for this slight difference.

The diplomatic success in securing a reduction of the US tariff notwithstanding, the outcome raises important questions about what Bangladesh may have had to offer in return. Media reports suggest the concession was partly achieved through commitments to purchase 25 Boeing aircraft and other American commodities such as wheat and cotton aimed at narrowing the trade imbalance. However, the wisdom of investing heavily in Boeing jets is questionable, especially given Biman Bangladesh Airlines' longstanding reputation for poor service and operational inefficiencies. The airline reportedly experiences an average 23 per cent vacancy rate on international routes. Rather than expanding a struggling civilian fleet, Bangladesh might have prioritised more strategic defence acquisitions such as advanced fighter jets for the Bangladesh Air Force, the aging fleet of which faces safety and operational risks. Notably, Vietnam has reportedly procured F-16s through similar trade negotiations, a move that shows how defence procurement can simultaneously help address trade deficits while enhancing sovereign capabilities.

Furthermore, to make the most of this achievement and the opportunities from the lower tariff, the government must address the challenges facing other export-oriented industries that continue to hold back growth. For instance, the leather and footwear sector remains constrained by the absence of a fully functional Central Effluent Treatment Plant (CETP) in the Savar Tannery Industrial Complex. This sector has the potential to become a major source of foreign exchange, provided compliance and environmental concerns are resolved. Policymakers must undertake the necessary reforms to ensure Bangladesh does not miss the opportunity to diversify its export basket, thus paving the way for sustained economic growth in the years ahead.​
 

Prof Yunus sees bright future for Bangladesh as it secures 20pc US tariff rate

UNB
Published :
Aug 01, 2025 09:37
Updated :
Aug 01, 2025 09:37

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Chief Adviser Prof Muhammad Yunus on Friday said they proudly congratulate the Bangladesh tariff negotiators on securing a landmark trade deal with the United States, a decisive diplomatic victory.

"The future of Bangladesh is undeniably bright. Today’s success stands as a powerful testament to the nation’s resilience and its bold vision for a stronger economic tomorrow," Prof Yunus said
in a message after successful tariff negotiations with the United States.
.
By reducing the tariff to 20 per cent, 17 points lower than anticipated, he said their negotiators have demonstrated remarkable strategic skill and unwavering commitment to safeguarding and advancing Bangladesh’s economic interests.

Prof Yunus said they have been working relentlessly since February and navigated successfully through a complex negotiating process involving tariff, non-tariff and national security matters.

"The agreement they negotiated preserves our comparative advantage, enhaces our access to the world's largest consumer market and safeguards our core national interests," he said in his message shared by Deputy Press Secretary Abul Kalam Azad Majumder.

This achievement not only underscores Bangladesh’s rising strength on the global stage but also opens the door to greater opportunities, accelerated growth, and lasting prosperity, Prof Yunus said.​
 

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