Md Tarek Hossain: As the clock ticks down to Bangladesh’s looming trade deadline with the United States, a fresh deal between Washington and Tokyo has added urgency—and pressure—to Dhaka’s ongoing negotiations. Japanese Prime Minister Shigeru Ishiba on Wednesday confirmed that the United States has agreed to reduce its auto tariffs on Japanese vehicles to 15 %, down from 25 %, under a new bilateral trade agreement.

“We agreed to halve the additional 25 % tariff rate imposed on cars and car parts since April to 15 %, which includes the 2.5 % previously in place,” Ishiba told reporters in Tokyo. “We are the first country in the world to reduce tariffs on automobiles and auto parts, with no limits on volume,” he added.

The announcement comes just days after US President Donald Trump revealed what he called a “massive” trade deal with Japan, involving not just tariff adjustments but also a pledged $550 billion investment by Japan into the US economy. The White House also announced trade agreements with the Philippines, Vietnam, Indonesia, and the UK—each securing various concessions in exchange for US-friendly terms.

The growing list of US bilateral trade deals is ringing alarm bells in Dhaka, where policymakers are scrambling to avoid a 35 % tariff on Bangladeshi exports to the US, scheduled to take effect on 1 August. Currently, Bangladeshi exports to the US—primarily ready-made garments—enjoy a far lower tariff. Any drastic hike could hit the country’s key economic sectors hard.

Just last week, Finance Adviser Dr Salehuddin Ahmed said Bangladesh remained hopeful of securing a reduced or deferred tariff rate. “We are in talks. We believe there is still room to reach an understanding,” he said following a meeting at the Bangladesh Secretariat. Commerce Adviser Sk Bashir Uddin is expected to travel to Washington before the August deadline to continue the discussions.

Unlike Japan, which has significant investment leverage and geopolitical clout, Bangladesh’s negotiation options are more limited. However, the government is exploring strategic imports from the US—including wheat, agricultural machinery, and energy products—as bargaining tools.

“We have experienced uncertainty from the Russian and Ukraine blocks from where we usually bought wheat,” Dr Salehuddin noted earlier, explaining the rationale behind diversifying wheat imports. The Finance Adviser also acknowledged that paying slightly more for American goods could be part of a broader negotiation strategy.

Trade analysts in Dhaka warn that the wave of US trade agreements, particularly with RMG-exporting nations like Vietnam and Indonesia, could erode Bangladesh’s competitive edge. Vietnam’s recent deal caps tariffs on its exports to just 20 %, while Bangladesh faces the prospect of paying nearly double that unless a deal is reached.

“Our exporters will not be able to compete with countries that have better tariff terms,” said a senior BGMEA official. “It’s not just about trade policy—it’s about jobs, livelihoods, and national economic stability.”

Meanwhile, China has announced that it will send Vice Premier He Lifeng to Stockholm next week for trade talks with the US, ahead of an August 12 deadline. As major powers engage in fast-paced negotiations, smaller economies like Bangladesh are being forced to adapt quickly or risk falling behind.

For Dhaka, the stakes could not be higher. With over 4 million workers dependent on the garment industry and exports serving as a major engine of the economy, the outcome of these US talks will likely shape Bangladesh’s economic future for years to come. As the US signs deal after deal, the urgency for Bangladesh to secure fair terms has never been greater.