To narrow the trade gap with the United States and mitigate the reciprocal tariff imposed by the Trump administration, Bangladesh has decided to purchase 25 aircraft from US manufacturer Boeing.
This decision to increase the number of aircraft from an initial plan of 14 to 25 is a significant shift, with a few initial deliveries expected within one to two years, according to Commerce Secretary Mahbubur Rahman.
“We need aircraft immediately to expand the fleet of Biman, the national carrier. This decision aligns with our long-term strategy to enhance the national aviation sector,” Rahman stated.
He further said other countries, including India, Vietnam, and Indonesia, have placed large orders with Boeing to import more from the US in exchange for better trade deals. India and Vietnam have ordered 100 aircraft each, while Indonesia has ordered 50.
Boeing will gradually supply the 25 aircraft over the years, as the company works to match its production capacity, Rahman noted.
Boeing already dominates Biman Bangladesh Airlines’ fleet. Under the previous Awami League government, Bangladesh had committed to purchasing 10 aircraft from French company Airbus, but after the political change, the preference shifted to Boeing.
In addition to the aircraft purchase, the government is taking steps to increase other imports from the US, including wheat, soybean oil, and cotton, Rahman added.
These measures aim to reduce the trade deficit, which has become more pressing as Bangladesh braces for the upcoming 35% reciprocal tariff on exports to the US, set to take effect on 1 August, unless trade negotiations succeed, he further said.
The purchase of Boeing aircraft and the increased imports come amid ongoing trade talks between the two countries.
A Bangladeshi delegation, led by Commerce Adviser Sk Bashir Uddin, is scheduled to depart for Washington on Monday to meet US trade representatives for the third round of discussions on 29 and 30 July.
The delegation will also include National Security Advisor Khalilur Rahman, with the aim of reaching a resolution on the tariff issue by 1 August.
This purchase of 25 Boeing aircraft, alongside the increased imports, is part of Bangladesh’s strategic response to the challenges posed by the tariff hike.
It is viewed as a proactive effort to strengthen economic ties with the United States, which remains Bangladesh’s largest single export market for ready-made garments.