What strategy is Bangladesh adopting to tackle US tariffs?
The Bangladesh government has taken a series of measures to tackle a potential multi-dimensional crisis arising from the newly imposed US tariff policy.
The private sector is also working in parallel toward this objective, while the government prepares detailed proposals for further negotiations.
n early April, US President Donald Trump announced new tariffs at varying rates on several countries, including Bangladesh.
In response to requests from affected nations and to facilitate discussions, the United States suspended the tariffs, excluding those on China, for 90 days.
Since then, multiple rounds of meetings have taken place between officials of Washington and Dhaka to address the challenges posed by the policy.
Most recently, on April 23, Lutfey Siddiqi, special envoy for international affairs to the chief adviser, held discussions with US representatives.
During the meeting, the United States requested clear proposals from Bangladesh aimed at reducing trade imbalances. Once these proposals are submitted, further meetings are expected.
An official involved in the process said: "We want to complete discussions within the 90-day window. All necessary efforts are underway."
Regarding other countries' negotiations, the official added that India has nearly finalized a memorandum of understanding, South Korea has submitted its proposals, and Japan has made significant progress in its discussions.
Bangladesh’s proposal
The trade volume between Bangladesh and the United States currently stands at around $8.5 billion, with Bangladesh exporting goods worth over $6 billion, compared to $2.2 billion in US exports to Bangladesh. The United States has expressed a desire to reduce this trade imbalance, which currently favors Bangladesh.
Another government official said: "The government plays a supportive role in trade, while the private sector conducts actual imports and exports. Thus, the private sector’s involvement is critical."
Regarding the nature of Bangladesh’s proposals, the official outlined three key focus areas: first, the removal of non-tariff barriers; second, encouraging increased imports by the private sector; and third, reducing or eliminating tariffs on US goods.
They added that issues such as labor sector reforms, intellectual property rights, and developments in the digital economy may also be referenced in the proposals.
Future negotiations
According to another source, discussions will resume once Bangladesh submits its proposals.
"The United States does not expect the trade deficit to be resolved overnight," the official said.
"However, they want to see Bangladesh taking concrete steps toward reducing the gap and delivering tangible benefits to US interests."
They also pointed out that Bangladesh has emphasized another key issue to the United States: "While discussions have primarily focused on goods, Bangladesh pays the United States a significant amount for services. This should also be taken into consideration."
Government actions
Following the announcement of the new tariffs, Bangladesh’s interim government moved quickly to take preventive measures.
Chief Adviser Muhammad Yunus promptly sent a letter to the US president requesting a temporary suspension of the additional tariffs.
Commerce Adviser Sheikh Bashiruddin also reached out to his counterpart at the Office of the United States Trade Representative (USTR), urging a reconsideration of the new tariff measures.
As part of broader diplomatic efforts, two deputy assistant secretaries from the US State Department recently visited Bangladesh.
They held meetings with the chief adviser, the foreign affairs adviser, the special envoy, and the foreign secretary, seeking updates on Bangladesh’s actions in response to the tariffs.
In Washington, Lutfey Siddiqi met with Brendan Lynch, assistant secretary at the USTR.
During the meeting, the United States expressed keen interest in understanding Bangladesh’s initiatives to address the trade imbalance.
In response, Bangladesh conveyed its plan to increase imports from the United States and to lower tariffs on American goods as part of its broader strategy to narrow the trade gap.
