The second round of three-day tariff negotiations between Bangladesh and the United States began in Washington, DC on Wednesday, with both sides engaging in wide-ranging discussions amid growing concern over a proposed 35% tariff on Bangladeshi exports to the US.
The first day of talks was described as “very comprehensive,” covering key aspects of bilateral trade, according to an official message received in Dhaka.
Commerce Adviser Sk Bashir Uddin is leading the Bangladesh delegation in Washington. National Security Adviser Dr Khalilur Rahman and the Chief Adviser’s Special Assistant on ICT and Telecommunications, Faiz Ahmed Tayeb, joined the meeting virtually from Dhaka. Senior officials from the Commerce Ministry are also attending.
On the US side, officials from the Office of the United States Trade Representative (USTR), along with representatives from the departments of agriculture, energy, commerce, and intellectual property, took part in the discussions.
The talks, which follow a formal USTR invitation issued earlier this month, are seen as critical in light of Washington’s plan to impose a 35% reciprocal tariff on Bangladeshi goods starting 1 August. The proposed tariff, outlined in letters sent to 14 countries by President Donald Trump, aims to address trade imbalances and incentivise greater market access for American exports.
According to USTR sources, the negotiations are part of a broader strategy to secure “fair, free and reciprocal trade” with partners that currently maintain significant trade surpluses with the United States. Bangladesh, which exported over $8.4 billion worth of goods to the US in 2024—primarily garments—faces a potential loss of competitiveness if the new tariffs are implemented.
During Wednesday’s meeting, discussions reportedly covered trade in textiles, agriculture, pharmaceuticals, digital services, energy cooperation, and regulatory alignment. The Bangladesh side expressed willingness to open up sectors such as LNG, cotton, wheat, military equipment, and aircraft to American suppliers in exchange for tariff concessions.
A Bangladeshi official familiar with the matter said, “The talks were constructive. Both parties have shown flexibility, though it is too early to say whether we will secure a full rollback of the proposed tariff.”
The meetings are scheduled to resume at 9pm Bangladesh time on Thursday and continue into Friday. Negotiators from both countries are under pressure to reach a compromise before the August deadline, which, if missed, could disrupt Bangladesh’s $48 billion export economy, particularly its readymade garments sector which accounts for over 85% of the country’s export earnings.
Bangladeshi manufacturers have warned that the new tariff would make their products uncompetitive compared to those from countries like Vietnam and Mexico, which enjoy better trade terms under US agreements.
The outcome of the ongoing talks could significantly shape the future of Bangladesh–US trade relations, with potential implications for employment, investment, and long-term economic diplomacy between the two nations.