“Our tariffs will be reduced significantly, but it is not possible to say exactly by how much at this moment. We are hopeful something favourable will happen for Bangladesh,” Rahman said
Bangladesh and US hold tariff talks on 29 July 2025. Photo: CA Press Wing
Bangladesh and US hold tariff talks on 29 July 2025. Photo: CA Press Wing
The United States has given a positive indication on reducing the 35% reciprocal tariffs imposed on Bangladesh, Commerce Secretary Mahbubur Rahman told The Business Standard this morning (30 July).
Speaking from Washington at 6am Bangladesh time, Rahman said, “According to the agenda, we had a fruitful discussion with the US on 29 July, and we have received signals from officials of the United States Trade Representative (USTR) that the tariffs imposed on Bangladesh will be reduced.”
“Our tariffs will be reduced significantly, but it is not possible to say exactly by how much at this moment. We have meetings scheduled for today and tomorrow as well. We are hopeful something favourable will happen for Bangladesh,” he added.
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The first day of the third phase of negotiations on the Bangladesh-US tariff issue began at 3:30am Bangladesh time and concluded later in the day.
Present at the meeting were Commerce Adviser Sheikh Bashir Uddin, National Security Adviser Dr Khalilur Rahman, Commerce Secretary Mahbubur Rahman, and Additional Secretary Dr Nazneen Kawshar Chowdhury.
On the US side, the talks were headed by Assistant Trade Representative Brendan Lynch, along with trade and tariff-related officials.
Bangladesh’s tariff tightrope: Leveraging potential amidst US trade pressure
The entire negotiation process is being coordinated by the Embassy of Bangladesh in Washington, DC.
Earlier, US President Donald Trump sent letters to the heads of 14 countries imposing tariffs ranging from 25% to 40%.
Trump made the announcement through a post on his social media platform Truth Social on 7 July 2025.
Bangladesh will be subjected to a 35% tariff effective from 1 August, read the letter to Chief Adviser Muhammad Yunus.
This rate is 2% lower than his initial rate announced three months ago, but significantly higher than close rival Vietnam (in the field of RMG), which recently secured a trade deal with the US under which its goods will be charged a tariff of 20%.
Beyond tariffs: The complex reality of US demands
In each of his 14 letters, Trump warned against any retaliatory tariffs, threatening reciprocation from the US.
“If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by will be added onto the tariffs that we charge,” Trump wrote.
US President Donald Trump earlier announced a reduction in tariffs on garments from Bangladesh’s key competitor, Vietnam, to 20%. Proposed tariff rates for India, Pakistan, Indonesia, and China are also lower than for Bangladesh.