In a major diplomatic achievement, Bangladesh has successfully negotiated a reduced tariff rate of 20 percent on its exports to the United States, down from the previously imposed 35 percent, following a series of high-level negotiations in Washington, DC.
The White House confirmed the revised tariff rate on Thursday, representing a significant policy shift from President Donald Trump’s earlier directive issued on 8 July. That initial order had mandated a flat 35 percent tariff on all Bangladeshi exports, triggering widespread concern over the potential blow to the country’s export-driven economy, particularly its vital garment industry.
The breakthrough came after the third and final round of negotiations concluded late Wednesday between Bangladeshi officials and the Office of the United States Trade Representative (USTR), the US agency responsible for managing international trade policy.
The Bangladeshi delegation was led by Commerce Adviser Sk Bashir Uddin, National Security Adviser Khalilur Rahman, Commerce Secretary Mahbubur Rahman, and Additional Secretary Nazneen Kawshar Chowdhury. The team engaged in a three-day dialogue focused on mitigating the tariff impact and reestablishing fair trade terms.
As part of its strategy to address the longstanding trade imbalance, Bangladesh submitted a formal proposal to the USTR outlining a plan to narrow the gap. Dhaka also committed to purchasing a range of American goods, including 25 aircraft from Boeing, 700,000 tonnes of wheat, liquefied natural gas (LNG), cotton, pharmaceuticals, capital machinery, chemical raw materials, and various agricultural products.
USTR data shows that bilateral trade between the US and Bangladesh reached $10.6 billion in 2024. Of this, Bangladesh exported $8.4 billion worth of goods to the US—up 1.1 percent from the previous year—while US exports to Bangladesh declined slightly to $2.2 billion, widening the American trade deficit with Bangladesh to $6.2 billion.
The tariff initially introduced in April 2025 was set at 37 percent, later reduced by an additional 10 percent following a temporary 90-day suspension. The newly agreed-upon 20 percent rate is being hailed as a diplomatic success for Bangladesh and is expected to restore stability in bilateral trade.
The Boeing deal, finalized on 27 July, is seen as a calculated move by Dhaka not only to help rebalance trade figures but also to strengthen broader economic and strategic ties with Washington.
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