Bangladesh now faces uncertainty as US President Donald Trump announced on Monday a new rate for Bangladeshi goods, 35 per cent – that was just a 2% reduction on his original announcement, 37%, to be effective from August 1. Economists and business leaders in Bangladesh believe that Bangladesh may lose its once cherished ‘win-win’ position in the US market following the latest announcement regarding tariffs to be imposed on Bangladeshi goods by Trump, writes United News of Bangladesh (UNB). In April, the US announced a 37% trade tariff on Bangladeshi goods, before placing a 90-day pause on imposing them to allow for negotiations to take place that runs out on Wednesday (July 9).
On Monday, ahead of that deadline, Trump announced a new rate for Bangladeshi that was just a 2% reduction on his original announcement – 35%, to be effective from August 1. But experts say the damage may have already been done, report UNB. The burden of this new reality is expected to fall mainly on Bangladesh’s garments sector, where key competitor Vietnam have had its tariff slashed from 46% to just 20%. To secure that reduction, it dropped all tariffs on goods imported from the US (zero duties).
President Trump posted his letter to Chief Adviser Muhammad Yunus, and 13 other world leaders, on his social media platform Truth Social on Monday (Tuesday morning in Bangladesh), explaining the rationale behind his decision in almost identical letters that only had the names of the countries, leaders and tariff rates to be applied. He cited each country’s “tariff and non-tariff barriers” and a persistent “long-term trade imbalance” as reasons for the tariff. From August 1, 2025, all categories of Bangladeshi products will be subject to the 35% tariff, in addition to existing sector-specific duties. To prevent circumvention via transhipment, the new tariff will also apply to goods rerouted through third countries.
Trump stated that the 35% rate is “much less than the trade imbalance Bangladesh has with the US.” If Bangladesh retaliates by increasing tariffs, the US will respond by raising duties above the 35% rate, he warned.
The move, he said, is aimed at removing trade barriers in dealings with Bangladesh (and other countries).
Many in the business community believe there is too little time left to renegotiate the tariffs bilaterally. They also question the quality of Bangladesh’s proposals during the negotiation window, reports UNB.
Bangladesh Finance Adviser Dr Salehuddin Ahmed, however, continues to be optimistic, saying that “there is still some hope” that the tariff could still be reduced through ongoing discussions.
Speaking to reporters in Dhaka on Tuesday, he confirmed that the Commerce Secretary was departing for Washington to join the Bangladesh delegation already present there.
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