Finance adviser hints at further talks on US tariffs before deal signing

Finance Adviser Salehuddin Ahmed today (6 August) hinted at the possibility of further negotiations with the United States to reduce retaliatory tariffs, which now stand at 20%, as the agreement has not been signed yet.

While Bangladesh has already managed to bring down the tariff from 35% through negotiations, there is still room for further discussion before the deal is finalised, he said while speaking to reporters after meetings of the Cabinet Committee on Government Purchase and the Cabinet Committee on Economic Affairs at the Secretariat.

Asked whether further tariff negotiations are on cards, he replied, "Yes. Mr Bashir [commerce adviser] hasn't returned [from the US] yet. I've spoken with the vice president of the US Chamber, and they hold a very positive view of Bangladesh, as we have paid off Chevron and MetLife's dues. So, the US business community takes Bangladesh positively.

"A formal trade deal will be signed with the US, and we will review where tariffs need to be reduced and what products are to be imported from the US."

Regarding questions about the non-disclosure agreement (NDA) tied to the tariff deal, the adviser said, "In one-on-one negotiations, many details remain confidential. This is not a multilateral negotiation like those under the WTO or the UN, where information is public. Here, competitors like Vietnam, China, North Korea, South Korea, India, and Pakistan are all involved. Some information simply cannot be disclosed."

When asked whether the 20% tariff was satisfactory, he said, "It would have been better if the US had lowered the tariff further. What they have proposed is somewhat acceptable, but I wouldn't call it reassuring. Ideally, it would have been best if there were no retaliatory tariffs at all. However, compared to other countries, Bangladesh is not in a bad position."

Answering another question from journalists, he said, "The economy has improved significantly from the brink of crisis. It was in a very precarious state, but now we are reaching a more stable position. That said, challenges remain ahead — including inflation, employment, energy issues, and now the tariff matter. The biggest challenge, however, is to restore business confidence and accelerate trade and commerce, which has slowed down."

When asked about inflation, the finance adviser responded, "Inflation is easing, but it will take time. It doesn't drop suddenly overnight. Prices are coming down, but non-food inflation remains a bit challenging for us."

On questions about the election budget, he said, "We will provide the necessary funds for the election. There is no issue there."

Regarding reforms, he added, "We have already completed several immediate measures. There are also mid-term and long-term plans. For instance, bank resolution will take some time. The Bangladesh Bank is preparing a roadmap. The capital market is making steady progress and may improve further. We are moving quickly on the NBR front – we will amend the ordinance and complete the process. We aim to achieve some results by December."