Dhaka remains hopeful of win-win deal as tariff talks with US ongoing

The government remains optimistic about a mutually beneficial tariff deal as another round of talks with the United States is set to take place in Washington DC tomorrow (Bangladesh time), despite President Trump's announcement of a 35% tariff on Bangladeshi exports from 1 August.

"The proposed tariff is not yet final and can be reduced through one-on-one negotiations. Another meeting with officials from the US Trade Representative's (USTR) office is scheduled for early tomorrow [9 July]," said Finance Adviser Salehuddin Ahmed at the Secretariat today.

"Our commerce adviser is already in Washington. The meeting with the USTR is scheduled for 8 July [US time], which will be early 9 July in Bangladesh. We'll have more clarity on the issue after the meeting," he said. 

Commerce Adviser Sk Bashir Uddin is leading Bangladesh's trade talks with the US. National Security Adviser Khalilur Rahman is also part of the team.

Salehuddin Ahmed said that the government will take its measures considering the final outcome of the meeting. "So far, the meetings we had were positive," he said. 

The finance adviser also dismissed concerns about Bangladesh's weak negotiation skills, which arose following the US's reduction of tariffs on Vietnam to 20%.

"Our trade deficit is $5 billion while Vietnam's is $125 billion. But they [Vietnam] have scope to give concessions. We are trying to show that we have such a low deficit, there is no justification for paying so much tariffs," Salehuddin said.

US President Donald Trump, in a letter posted on his Truth Social account early Tuesday (Bangladesh time), announced a 35% tariff on Bangladeshi goods, 2% less than the initial 37% proposed three months ago, that will take effect on 1 August.

However, this still remains significantly higher than Vietnam's revised tariff rate of 20%, negotiated as part of a new trade deal under which Vietnam agreed to remove all import duties on US goods.

In response to Trump's letter, Chief Adviser's Press Secretary Shafiqul Alam said, "Dhaka is looking forward to a tariff deal with Washington, which, we hope, will be a win-win one for both countries."

"The Bangladesh team has held several rounds of discussion with their American counterparts," said the press secretary, noting that Commerce Adviser Sk Bashir Uddin will lead the Bangladesh side during the discussion on Wednesday (9 July), reports UNB.

Military equipment, LNG, wheat: US seeks trade access amid tariff talks

Speaking to reporters at the Secretariat today, Commerce Secretary Mahbubur Rahman said the Trump administration has proposed that Bangladesh lower import duties, VAT, supplementary, and regulatory duties on US goods in exchange for a reduction in the reciprocal tariffs imposed on Bangladeshi exports.

He said the government will review the proposal in consultation with the NBR and other stakeholders, with a focus on protecting Bangladesh's trade interests and existing market access in the US.

"Bangladesh is working to reduce its trade imbalance with the US as part of efforts to ease the retaliatory tariffs. This includes giving preference to US suppliers in government purchases of food grains, aircraft, and military equipment," the secretary said.

Mahbubur said the US had sent a requested tariff schedule document, which will be the focus of Wednesday's meeting. He described it as an extension of a previous agreement and expressed hope for a positive outcome.

In response to a query, he said Bangladesh's main arguments would be for tariff reductions and to ensure it is not placed at a disadvantage due to other trade-related issues.

He said in the latest documents, the US has requested easier access for exports of certain products to Bangladesh. These include military equipment, Boeing aircraft, liquefied natural gas (LNG), wheat, agricultural products, and cotton. However, automobiles were not mentioned in the US list.

He noted that Bangladesh has already begun increasing imports of wheat, cotton, and LNG from the US, and there are also plans to purchase aircraft.

The commerce secretary said that most of Bangladesh's aircraft fleet and aviation infrastructure are Boeing-made, and the government has plans to purchase more Boeing aircraft, with negotiations already underway.