TOB Report
Facing rising trade tensions with the United States, Bangladesh is considering a series of proposals aimed at easing the impact of new reciprocal tariffs imposed by the Trump administration.
As part of its response, the South Asian nation is planning to offer up to 50% tariff reductions on imports of gas turbines, semiconductors, and medical equipment from the world’s largest economy.
It also intends to maintain zero-duty policies on items that are already exempt and may request a three-month suspension of the newly imposed US tariffs to allow for further negotiations.
Additionally, the government is exploring the removal of non-tariff barriers such as fumigation requirements on US cotton and yarn and is proposing storage approval for American yarn. Priority may also be given to US agricultural and tech products in procurement.
Furthermore, Dhaka is considering allocating special economic zones to US companies such as Walmart, Chevron, Meta, Tesla, and Boeing.
These proposals were discussed during a high-level meeting held at the Bangladesh Investment Development Authority (BIDA) office in Dhaka, attended by industry leaders and stakeholders.
A formal letter to US President Donald Trump is being drafted, and Professor Muhammad Yunus is expected to lead direct communications with the US administration.
The move comes in response to the US decision to enforce reciprocal tariffs from 9 April, including a 37% duty on Bangladeshi exports. While Bangladesh’s own data shows an average tariff of 6% on US imports (dropping to 2.2% after adjustments), the US claims the effective rate is as high as 74%, factoring in non-tariff barriers, currency exchange, and trade policies.
In 2024, Bangladesh imported 2,515 categories of goods from the US, with tariffs ranging from 0% to 611%—notably on luxury items such as whiskey and Mercedes-Benz cars.
Industry sources warn that if Bangladesh fails to adapt, its export competitiveness may suffer, especially compared to better-prepared regional rivals such as Vietnam and India.
