Bangladesh Seeks US Trade Pact to Avert Tariff Hike as July 9 Deadline Looms
Bangladesh, the world’s second-largest garment exporter, is urgently negotiating a reciprocal trade agreement with the United States to avoid steep tariffs set to take effect next week under President Donald Trump’s new trade agenda.
Commerce Secretary Mahbubur Rahman confirmed on Wednesday that Dhaka has finalized a draft deal aimed at addressing the $6 billion trade imbalance with the US. In return for favorable trade terms, Bangladesh has offered to import more American wheat, cotton, oil, and 14 Boeing aircraft.
A meeting between US and Bangladeshi officials is scheduled for July 8, just one day before the 37% tariff hike is expected to come into force. Currently, the US accounts for 20% of Bangladesh’s ready-made garment exports.
Bangladesh’s textile sector, responsible for nearly 80% of its total exports, has been attempting a recovery following political unrest that disrupted production last year.
The US tariffs, announced on April 2, more than double the existing 16% levies on cotton imports from Bangladesh. While a 10% base tariff remains in place, Trump temporarily delayed the full increase to allow negotiations.
In 2024, Bangladesh exported $8.36 billion worth of goods to the US, while importing just $2.21 billion — a gap the US administration wants to narrow.
Rahman stated the government had already held 28 rounds of meetings and document exchanges to push the deal forward. Interim Prime Minister Muhammad Yunus also discussed the issue with US Secretary of State Marco Rubio this week, assuring US officials of Dhaka’s willingness to collaborate.
However, the proposed agreement has drawn mixed reactions from the garment industry. BGMEA President Mahmud Hasan Khan warned that the added 10% tariff is already hurting exporters and could deter US buyers if increased further.
In contrast, BKMEA President Mohammad Hatem remains optimistic, saying, “A deal is still possible before the deadline. If not, the price burden will shift to American buyers.”
