Bangladesh considers proposals to ease US tariff pressures

TBT DESK: Finance Affairs Adviser Dr Salehuddin Ahmed on Sunday said the government has taken necessary steps to engage with the United States authorities over the new tariffs imposed by Washington.
Speaking to journalists at the Secretariat, he said, "The impact of the new US tariffs on the economy will not be difficult to manage. The government is hopeful that a positive outcome will emerge from the discussions."
Dr Salehuddin also noted that commodity prices were found stable during Ramadan and Eid-ul-Fitr, bringing some sort of relief to the public.
"This year, people had a good Eid. In March alone, the country received $3 billion in remittances, which helped boost the foreign exchange reserves," he added.
The finance adviser said the country's overall economic situation is showing signs of improvement, supported by the rising inflow of foreign currency.
In response to the United States imposing a steep 37 % retaliatory tariff on Bangladeshi goods, the government is actively considering a set of proposals aimed at easing the strain on its key export sectors, most notably the ready-made garment industry.
Bangladesh currently enjoys a trade surplus with the US, but it has not been spared from the broad wave of tariff increases ordered by President Donald Trump. These new duties, effective from 9 April, have prompted concern within Bangladesh's export-oriented industries, as they brace for potential disruptions in trade flows and a shift in global buyer sentiment.
To mitigate the impact, officials in Dhaka are exploring reciprocal tariff reductions. One key proposal involves offering a 50 % reduction in import duties on select US goods, including gas turbines, semiconductors, and medical equipment. Additionally, the current zero-tariff regime on certain American imports, such as cotton, soybeans, ocean-going vessels, and liquefied natural gas, is likely to be maintained.
Another idea under serious consideration is calling on the US to suspend the recently imposed tariff hike for three months, to allow for productive dialogue. These ideas were discussed in a five-hour high-level meeting held on Saturday at the Bangladesh Investment Development Authority (BIDA) office in Dhaka's Agargaon area.
During the meeting, a draft letter addressed to President Trump was prepared. According to sources present, Nobel laureate and presidential adviser Prof Muhammad Yunus is expected to play a key role in directly communicating Bangladesh's concerns to the Trump administration.
As part of a broader strategy to address both tariff and non-tariff barriers, Bangladesh has already begun taking steps such as removing fumigation requirements on US cotton and allowing warehousing of American yarns. The country also aims to prioritise purchases of American agricultural and technological goods, and plans to offer special economic zones for major US firms, including Walmart, Chevron, Meta, Tesla, and Boeing.
The draft letter to the US president also lists four potential import categories from the US: calcium carbonate, fresh or frozen beef carcasses, bone-in beef cuts, and boneless frozen beef. These products are being considered for tariff concessions in exchange for reduced duties on Bangladeshi exports.
According to data from the National Board of Revenue (NBR), the average applied tariff on US imports last year stood at 6.15 %. However, after adjusting for refundable taxes such as VAT and advance income tax, the effective average was closer to 2.2 %. In contrast, US calculations-factoring in both tariff and non-tariff elements-estimate that Bangladeshi duties on American goods reach as high as 74 %.
In 2024 alone, Bangladesh imported goods from the US under 2,515 distinct HS codes, with individual tariff rates ranging from zero to a staggering 611 %. Officials admit that Bangladesh's trade policy readiness has lagged behind competitors like Vietnam and India, both of whom have been actively preparing for global trade shifts.
"There was a clear lack of preparedness on our part," said one official present at the BIDA meeting, speaking on condition of anonymity. "Now we are seeing pressure building up on our factories. Buyers want to shift the burden of these new tariffs onto suppliers, which could undermine our competitiveness."
Participants in Saturday's meeting included prominent business leaders such as former BGMEA president Rubana Huq, Syed Nasim Manzur of the Leather Goods & Footwear Manufacturers & Exporters Association, Ahsan Khan Chowdhury of PRAN-RFL Group, and Shamim Ehsan from BKMEA. Policy experts such as former Tariff Commission member Mustafa Abid Khan and Dr Zahid Hussain of PRI also contributed to the discussions.
With pressure mounting and negotiations looming, Bangladesh is now racing against time to preserve its hard-earned position in the US market, while balancing the demands of global buyers, trade fairness, and domestic economic stability.