 [ Online ] 12/07/2025 |
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Washington, Dhaka try to iron out key tariff issues commerce adviser meets US trade representative |
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The second round of tariff negotiations between Bangladesh and the United States ended yesterday in Washington, DC, with both sides reviewing and debating key proposals.
The three-day talks resumed Wednesday, with delegates from both governments discussing a wide range of trade, labour, and investment matters.
The discussion was friendly and Bangladesh can expect a positive outcome from the negotiation, said an official familiar with the negotiation.
Both sides agreed on most of the issues discussed during the meeting, the official also said.
Now the US officials will send the key aspects of the meetings to the high-ups of the Trump administration for their decision on the tariff rate on Bangladesh.
On the second day of negotiations on Thursday, the US suggested Bangladesh reduce its reliance on China for sourcing industrial raw materials, the official familiar with the discussions said.
Bangladesh, however, stuck to its demand that the US lower the tariff on Bangladeshi exports to at least 10 percent, as the country remains a member of the least developed countries (LDC) group.
US Trade Representative negotiators expressed concern over Bangladesh's heavy dependence on China for industrial inputs, the official said.
He added that it was difficult to predict the outcome of the ongoing talks, especially as US President Donald Trump had already sent a letter to Dhaka imposing a 35 percent tariff on all Bangladeshi goods entering the US starting August 1.
According to the official, the steep tariff was triggered by the high concentration of Chinese content in Bangladeshi exports, a move seen as part of Washington's broader strategy to curb China's economic influence.
In FY24, Bangladesh imported $16.63 billion worth of goods from China, about 26.4 percent of its total import bill, Bangladesh Bank data shows. Over 80 percent of those imports were industrial raw materials, particularly for the garment sector, including fabrics, chemicals, and accessories.
Commerce Adviser Sk Bashir Uddin met with US Trade Representative Ambassador Jamieson Greer at the USTR office in Washington, DC, at 11:00am local time on Thursday, according to a statement from the Chief Adviser's Office.
During the meeting, both sides reaffirmed their commitment to deepen bilateral ties and discussed key issues in trade and commerce, with special focus on the tariff negotiations.
The talks were comprehensive, covering nearly all aspects of the Bangladesh-US trade relationship, the statement added.
Bashir Uddin is leading the Bangladesh delegation in Washington, DC. National Security Adviser Khalilur Rahman and the Chief Adviser's Special Assistant on ICT and Telecommunications Faiz Ahmed Tayeb joined the talks virtually from Dhaka. Commerce Secretary Mahbubur Rahman and an additional secretary also attended the meeting in person.
Senior US officials from various sectors, including agriculture, labour, environment, Treasury, innovation, intellectual property, and investment, participated in the discussions.
Meanwhile, business leaders in Dhaka expressed deep concern over the potential impact of the new tariff. At a meeting with four advisers at Rail Bhaban on Thursday evening, they warned that exports, which reached around $8 billion to the US last year, would take a major hit.
Industry insiders estimated that nearly 200 small and medium enterprises could be forced to shut down, resulting in job losses for more than 100,000 workers.
They also said US retailers and clothing brands were already delaying work orders due to the prevailing uncertainty.
Business leaders claimed they had urged the government two months ago to appoint lobbying firms in the US to help negotiate the tariff issue with the Trump administration.
On Thursday, Trump suggested he may raise the baseline tariff on foreign imports from 10 to 20 percent.
This rate would still add on to some other pre-existing levies such as 'Most Favored Nation' tariffs, according to a US official who requested anonymity to discuss the matter.
That would push the typical total average effective rate even higher. US sectoral tariffs, such as on automobiles and steel, are separate from the baseline rate but not cumulative -- importers pay one or the other. |
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