The United States has reduced tariffs on Bangladesh, setting them at 20 percent

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News Desk: The United States, one of Bangladesh’s major export markets and a key importer of ready-made garments, has reduced tariffs on products imported from Bangladesh by 15 percent. In early July, U.S. President Donald Trump had announced a new retaliatory tariff rate of 35 percent on Bangladeshi goods; however, this rate was lowered to 20 percent on Thursday, according to an announcement from the White House.

A Reuters report revealed that, in addition to Bangladesh, at least 25 other countries worldwide have been subjected to new tariffs by the U.S. These include India at 25 percent, Pakistan at 19 percent, Indonesia at 19 percent, Malaysia at 19 percent, Myanmar at 40 percent, the Philippines at 19 percent, Sri Lanka at 20 percent, and Vietnam at 20 percent.

Other countries affected include Afghanistan (15%), Algeria (30%), Bolivia (15%), Bosnia and Herzegovina (30%), Botswana (15%), Brazil (10%), Brunei (25%), Cambodia (19%), Cameroon (15%), Chad (15%), Costa Rica (15%), Ivory Coast (15%), Congo (15%), Ecuador (15%), Guinea (15%), and the Falkland Islands (10%).

On April 2, the U.S. had imposed a 37 percent tariff on Bangladeshi goods, announced by President Trump at a White House press conference in Washington. Prior to this, the average tariff on Bangladeshi imports stood at approximately 15 percent. The sharp increase raised concerns about significant negative impacts on Bangladesh’s export sector, especially its ready-made garment industry. Bangladesh exports goods worth around $840 million annually to the U.S., with the majority being ready-made garments. Last year alone, garment exports to the U.S. totaled $734 million.

As the 90-day tariff suspension period neared its end, President Trump set a new tariff rate of 35 percent on Bangladesh in the first week of July. The rate was slightly reduced, and the new tariff on imports from Bangladesh was fixed at 35 percent. Simultaneously, new tariffs were announced on 14 other countries, including South Korea and Japan. Although the new tariffs were initially scheduled to take effect on July 9, the implementation was postponed to August 1.

Bangladesh engaged in multiple rounds of bilateral negotiations with the U.S. to reach a tariff agreement, aiming to reduce the retaliatory tariffs. The U.S. Trade Representative’s (USTR) office invited Bangladesh for a third and final round of discussions, which took place in Washington on Tuesday and Wednesday. A delegation led by Trade Adviser Sheikh Bashiruddin participated in the talks.

Amidst tariff reduction negotiations, Bangladesh placed an order to purchase 25 Boeing aircraft from the United States, a strategic move to gain leverage in discussions. Trade Secretary Mahbubur Rahman disclosed this information to journalists at his office in the Secretariat on Sunday.

Earlier, the government’s Procurement Advisory Committee had approved a proposal to import 220,000 tons of wheat from the U.S. at a slightly higher price. Speaking to reporters, Trade Secretary Mahbubur Rahman clarified that Boeing’s business operations are independent of the U.S. government. Bangladesh’s order for 25 aircraft follows similar orders from India and Vietnam, which have each ordered 100 planes, and Indonesia, which ordered 50. Boeing will supply the aircraft according to its capacity and order priority, with deliveries expected over the next two to three years. Bangladesh has long planned to expand its fleet, having previously ordered 14 Boeing aircraft. The recent order of 25 planes was finalized in the context of the reciprocal tariff issue.

Mahbubur Rahman added that after receiving the draft of the reciprocal tariff agreement, multiple rounds of discussions were held. Two rounds took place in Washington, complemented by online meetings. Following inter-ministerial consultations and talks with relevant stakeholders, Bangladesh communicated its final position to the U.S. on July 23, responding to all draft points and clarifying its stance comprehensively.