US Signals Tariff Relief for Bangladesh in Key Talks

Bangladesh and US hold tariff talks on 29 July 2025.

The United States has signalled a positive response to reducing the 35% reciprocal tariff on Bangladeshi exports, according to Commerce Secretary Mahbubur Rahman.

Speaking from Washington early Tuesday (Bangladesh time), Rahman said the discussions held on 29 July with officials from the United States Trade Representative (USTR) were productive. "We received indications that the tariff on our exports will be reduced," he said.

While he could not specify the exact rate of reduction yet, he noted that further meetings are scheduled for today and tomorrow, and expressed optimism about a favourable outcome for Bangladesh.

The third phase of the Bangladesh-US tariff negotiations began at 3:30am Bangladesh time and continued through the day.

The Bangladesh delegation included Commerce Adviser Sheikh Bashir Uddin, National Security Adviser Dr Khalilur Rahman, Commerce Secretary Mahbubur Rahman, and Additional Secretary Dr Nazneen Kawshar Chowdhury. The US side was led by Assistant Trade Representative Brendan Lynch and other trade officials.

The talks are being coordinated by the Bangladesh Embassy in Washington, DC.

Earlier, US President Donald Trump announced new tariffs ranging from 25% to 40% for 14 countries through letters sent to their heads of government. Bangladesh was informed it would face a 35% tariff from 1 August — a 2% reduction from the initially proposed 37%, but still higher than Vietnam’s 20%, following a recent trade deal with the US.

In each letter, Trump warned of retaliation if any country imposed counter-tariffs, stating, “Whatever the number you choose to raise them by will be added onto the tariffs that we charge.”

Tariff rates proposed for Bangladesh remain higher than those for key competitors like India, Pakistan, Indonesia, and China.