Bangladesh Boosts US Imports to Narrow Trade Imbalance

The government has launched a series of initiatives to reduce Bangladesh’s growing trade deficit with the United States, its largest export market. While exports to the US exceed $8 billion annually, imports remain just above $2 billion—creating a significant trade gap.

In an effort to balance the scales, Bangladesh has offered tariff concessions on more than 100 US-origin products and signed an agreement to import 700,000 tonnes of high-quality wheat from the US. It has also placed an order for 25 Boeing aircraft in a strategic move to ease tariff pressures through reciprocal trade deals. Plans are also underway to boost imports of US soybean oil and cotton.

According to the National Board of Revenue (NBR), Bangladesh mainly imports US agricultural goods—including wheat, soybeans, cotton, and corn—alongside machinery, vehicles, petroleum, and metals. In contrast, exports to the US largely consist of ready-made garments, textiles, footwear, and some agricultural items.

To encourage reciprocal tariff reductions, the government included duty waivers for over 100 US products in the national budget. Commerce Ministry officials said the Boeing aircraft purchase is part of wider negotiations intended to reduce US tariffs on Bangladeshi goods, which currently reach up to 35%.

Work on a formal trade agreement is in progress. Two rounds of talks have already been held in Washington, along with several virtual meetings. Following inter-ministerial consultations, Bangladesh submitted its formal position to US authorities on 23 July. A high-level meeting is scheduled before 1 August at the US Trade Representative’s office, where Bangladesh will be represented by its Trade Advisor, Security Advisor, and Commerce Secretary.

Commerce Secretary Mahbubur Rahman explained that the Boeing order aligns with a broader regional trend—India and Vietnam have each ordered 100 aircraft, while Indonesia has ordered 50. Bangladesh initially ordered 14 but increased the total to 25 to strengthen its position in ongoing tariff negotiations.

While some aircraft may be delivered within the next two years to expand Biman Bangladesh’s fleet, the overall delivery schedule will depend on Boeing’s production capacity.

Rahman also confirmed the wheat deal and noted that the private sector is exploring additional imports of soybean oil. Meetings are scheduled between Bangladeshi businesses and US soybean exporters. Cotton imports are already underway, albeit in limited quantities.

These measures, officials hope, will gradually increase imports from the US, reduce trade imbalance, and pave the way for stronger bilateral economic ties.