Businesses of the country are eagerly waiting for the July 3-meeting between representatives of the Bangladesh government and the United States Trade Representative in Washington, DC regarding reciprocal 37 per cent tariff imposed by Donald J Trump administration on April 2.
However, US president Donald Trump put a 90-day pause on tariffs on April 9, which is set to end on July 9.
Bangladesh currently enjoys a 15 per cent tariff on exports to the US, the country’s single largest export destination.
Meanwhile, in an interview with Fox News on Sunday, Trump stated that he had no plan to extend the 90-day pause on tariffs for most nations beyond July 9, when the negotiating period he set would expire.
He also stated that his administration would notify countries that the trade penalties would take effect unless they reached a deal with the US.
In this regard, there has been an exchange of letters between the Bangladesh government and the USTR over the past two months.
According to commerce ministry sources, a draft of the agreement was prepared on June 12, following the exchange of letters and a meeting in Washington on April 21.
National security adviser Khalilur Rahman is expected to meet with the US counterpart, where commerce adviser Sk Bashir Uddin might also be present.
Speaking to New Age, Mahbubur Rahman, secretary of the Ministry of Commerce, stated that in the upcoming meeting, the parties would attempt to resolve matters related to agreements, disagreements and areas of alignment or divergence.
Khalilur Rahman has already conducted a meeting with the USTR on June 26, following Bangladesh’s submission of its proposals to the US in mid-June.
Mahbubur also stated that, after the meeting, the progress of Bangladesh and its potential for reaching a final agreement would be revealed.
Earlier on May 7, in a letter to commerce adviser Sk Bashir Uddin, the USTR requested that Bangladesh submit a written set of offers demonstrating its commitment to reducing tariffs on American goods.
The letter also stated that the USTR was ready to engage with Bangladesh and address other areas of unfair trade practices.
In response, both parties exchanged several letters between May and June.
Speaking to New Age, Anwar Ul Alam Chowdhury Parvez, president of the Bangladesh Chamber of Industries, said that the government was working on the matter, although the businesses were relatively unaware of the exact details.
‘Most countries appointed lobbyist firm to negotiate with Trump. We also offered the government to help do the same. We even wanted to share the cost,’ he added.
‘We hope government has its way to resolve the issues and we urge the government to share the development with the businesses as they are the biggest stakeholders,’ he added.
Mahmud Hasan Khan Babu, president of the Bangladesh Garment Manufacturers and Exporters Association, said that government was pursuing a G2G meeting and most of these conditions were still undisclosed.
‘However, two advisers are to sit with the USTR on July 3 and July 4 to finalise the agreements and disagreements. If there would not be any agreements, we might get another 3 months to finalise it,’ he added.
In the interview with Fox News Channel, Trump stated that the administration would soon begin sending tariff-related letters.
He also stated that the administration had set a goal of reaching 90 trade deals in 90 days, although it was challenging to negotiate with 200 countries.
Fazlee Shamim Ehsan, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association, said, ‘We are eagerly waiting for the outcome of the meeting. The government didn’t disclose anything about the meeting.’
He stated that the businesses hoped that a positive outcome would result from the meeting.
As a part of reducing the trade gap with the US, the government decided to import several products from the US, like wheat, cotton and even Boeing aircraft.
Moreover, the national budget for the financial year 2025-26 also waived duties on most US goods.
In 2024, Bangladesh exported approximately $8.4 billion in goods to the US, of which $7.34 billion accounted for readymade garments. In 2024, US goods exports to Bangladesh were worth $2.2 billion, resulting in a trade deficit of $6.2 billion for the US.