US tariff on Bangladeshi goods not final, can be reduced through negotiations: Finance adviser
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
The proposed 35% tariff by the United States on Bangladeshi exports is not yet final, Finance Adviser Salehuddin Ahmed said today (8 July).
He clarified that the issue will be resolved through one-on-one negotiations, and a key meeting with officials from the US Trade Representative's (USTR) office is scheduled for early tomorrow (Bangladesh time).
Speaking to reporters today (8 July) after a meeting of the Cabinet Committee on Public Procurement at the Secretariat, Salehuddin stated, "Our commerce adviser is already in Washington. He went three days ago. The commerce ministry team is flying today. The meeting with USTR is scheduled for 8 July [US time], which will be early morning tomorrow in Bangladesh. We'll have clarity after the meeting. The USTR communication we received isn't official or final."
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He also said whatever be the result, 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 dismissed concerns over weak negotiation skills on Bangladesh's part, saying, "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."
On revenue collection, the finance adviser said the revenue collected in the last fiscal year was fairly satisfactory and it was not a massive shortfall.
"For the coming year, we are trying to focus not just on taxes and VAT, but on changing the entire system. If that happens, you will see a significant increase in revenue collection. There will be no leakage, and no one will be able to collude with businesses to manipulate the system. Our tax capacity is strong, but we have not been able to utilise it fully. That's why there is some revenue shortfall," he 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. 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.
Trump's letters, sent to leaders of 14 countries, outlined new tariff rates effective from 1 August.
Apart from Bangladesh, the new rates include Myanmar and Laos at 40%, Cambodia and Thailand at 36%, Serbia at 35%, Indonesia at 32%, and South Africa, Bosnia-Herzegovina, Japan, South Korea, Kazakhstan, Malaysia and Tunisia at 25%.
The letters warned Trump's counterparts to not retaliate by increasing their own import taxes, or else the Trump administration would further increase tariffs.
