Bangladesh–US trade: US to consider lowering 20% tariff; Yunus hails ‘important step forward’

Bangladesh has signalled a potential breakthrough in trade relations with the United States, as discussions in Washington raise the prospect of lower tariffs and preferential market access for the country’s key textile and apparel exports. In a statement, Bangladesh’s chief adviser Muhammad Yunus said the talks marked “an important step forward” in strengthening a mutually beneficial economic partnership between the two countries.According to Yunus, the US trade representative ambassador Jamieson Greer has agreed to raise with President Donald Trump the possibility of reducing Bangladesh’s current 20% reciprocal tariff rate. The move, requested by National Security Adviser Dr Khalilur Rahman during his visit to Washington, would bring Bangladesh’s tariff treatment more in line with that of regional competitors and expand access for its vital garment sector.The trade talks come as Bangladesh moves to ease tensions with Washington through increased imports of US agricultural products. Dhaka has approved the purchase of around 220,000 metric tonnes of US wheat under a government-to-government deal, following a broader memorandum of understanding signed in July committing Bangladesh to import 700,000 tonnes of US wheat annually over the next five years. Officials say the strategy is aimed at diversifying grain sources and narrowing a sizeable trade imbalance.In 2024, total US goods and services trade with Bangladesh reached an estimated $12.4 billion, up three per cent from the previous year. While US goods exports rose modestly to $2.3 billion, imports from Bangladesh climbed to $8.4 billion, leaving Washington with a goods trade deficit of $6.1 billion.