The United States has indicated a possible reduction in the 35% reciprocal tariffs currently imposed on Bangladeshi exports, Commerce Secretary Mahbubur Rahman said on Tuesday (30 July).
A productive discussion was held with US officials on 29 July, as outlined in the agenda, he said while talking to different media outlets.
The Commerce Secretary also said that signals had been received from the United States Trade Representative (USTR) indicating that the tariffs imposed on Bangladesh were likely to be reduced.
He said that a significant reduction in tariffs was expected, although the exact percentage could not yet be confirmed. Further meetings had been scheduled for that day and the following day, and it was hoped that a favourable outcome would be achieved for Bangladesh.
The talks marked the beginning of the third round of negotiations on the Bangladesh-US tariff issue. The first day of discussions started at 3:30am Bangladesh time and continued through the day.
Representing Bangladesh 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 delegation was led by Assistant Trade Representative Brendan Lynch, along with other officials responsible for trade and tariff matters.
The negotiations are being coordinated by the Embassy of Bangladesh in Washington, DC.
Earlier, US President Donald Trump sent formal letters to the heads of 14 countries announcing tariffs ranging from 25% to 40%. The letters, dated 7 July 2025, were published via Trump’s social media platform, Truth Social.
According to the letter addressed to Chief Adviser Muhammad Yunus, Bangladesh will face a 35% tariff effective from 1 August. Although this rate is 2% lower than what was initially announced three months earlier, it remains significantly higher than that for Vietnam—Bangladesh’s close competitor in the ready-made garment sector—which recently secured a US trade agreement under which its goods will be taxed at 20%.
In each of the 14 letters, Trump warned against retaliatory measures, stating that any reciprocal tariff hike would prompt an equivalent increase from the United States.
“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,” the US president wrote.
While Trump has offered lower tariff rates to key competitors such as Vietnam, India, Pakistan, Indonesia, and China, Bangladesh remains subject to one of the highest proposed rates.
SMS/
