Tariff talks: Bangladesh, US set for crucial virtual meeting on 29 July

Bangladesh and the United States will hold a virtual meeting on 29 July to discuss the recently imposed 35% reciprocal tariffs by the Trump administration on Bangladeshi exports, a development seen as a critical window for negotiation just a week before the new rates take effect on 1 August.

Confirming the date while talking to The Business Standard this evening, Commerce Secretary Mahbubur Rahman said, "The meeting with the officials of the Office of the United States Trade Representative [USTR] will be held from 8pm to 10:30pm on 29 July."

His clarification came hours after Commerce Adviser Sheikh Bashir Uddin, while talking to reporters at the Secretariat earlier today, said the meeting would be held tomorrow (Friday).

Bangladesh has made repeated requests to Washington for a date to hold the third and final round of tariff negotiations in person by sending a delegation to the US. However, the Trump administration has not responded to the request for an in-person meeting.

The commerce ministry had even booked plane tickets for a delegation – led by the commerce adviser and the commerce secretary – to travel to the US on 21 July. However, US authorities advised against the visit without a confirmed meeting schedule.

The commerce adviser said they remain in anticipation of a response from the US regarding Bangladesh's request to reduce newly imposed counter-tariffs on Bangladeshi goods, as well as a potential invitation to visit for further negotiations.

Despite two rounds of discussions, there has been no significant progress yet on the issue of the 35% tariff imposed by the US.

In a letter dated 8 July, US President Donald Trump informed Chief Adviser Muhammad Yunus that the new tariffs would take effect from 1 August. If implemented, the average tariff on Bangladeshi exports to the US would rise to nearly 50%.

When asked about the current status of negotiations, Adviser Bashir said, "We sent a letter to the US commerce secretary just two days ago outlining our position. We are waiting for a response and an invitation. Once we receive both, our negotiation team is ready to travel immediately."

Regarding concerns over the 1 August implementation deadline, he said, "This is as important for the US as it is for us. There is no inertia on our part. We are actively working on this issue with full momentum."

Asked about the government's expectations, Bashir Uddin said they are hopeful and doing what is needed to be done for a positive outcome.

About the demand from business leaders to appoint a lobbyist in the USA, the adviser clarified, "The government has not appointed any lobbyist. You [journalists] have to understand that the US is working under a national emergency declaration.

"I'm not sure if lobbyists can intervene effectively within the structure in which this is happening."

He added that many of the necessary policy adjustments involve complex inter-ministerial legal processes.

"Only we understand what needs to change in our systems. A lobbyist may not be equipped to grasp or handle that. We've been working day and night for the last 15 days. Almost every relevant ministry is involved," he said.

When asked whether discussions with the US will continue after the 1 August deadline, the adviser said, "Of course, they will."

Vietnam, one of Bangladesh's key competitors in the US apparel market, has successfully negotiated a reduction in tariff rates – from 46% to 20%. Another major exporter, Indonesia, has also secured a tariff cut from 32% to 19%, as recently announced by US President Donald Trump.

Tariff rates proposed for other competitors like India and Pakistan are also lower than those currently imposed on Bangladesh. Industry insiders fear that unless Bangladesh can negotiate similar reductions, its exports to the US market may face serious setbacks.

Meanwhile, on 23 July, the Trump administration announced tariff reductions for Japan and the Philippines through bilateral negotiations. Earlier, tariffs on UK apparel exports were lowered to 10%.