The third and final round of high-stakes negotiations between Bangladesh and the United States over the 35% countervailing duties on Bangladeshi exports is underway Thursday, July 31, in Washington, DC
The three-day talks, held at the office of the US Trade Representative (USTR), began on Tuesday, July 29, and marked the last diplomatic opportunity for Bangladesh to avert the punitive tariffs, scheduled to take effect on August 1.
While previous rounds of discussions were described as "fruitful" by officials from both sides, no concrete outcome on tariff reduction has been announced yet. A joint statement is expected in the coming days.
Expressing cautious optimism, Commerce Secretary Mahbubur Rahman said, “I hope something good will happen for Bangladesh.”
He added, “We’ve presented our case with facts and sincerity. Now we await the US response.”
The Bangladesh delegation, led by Commerce Adviser Sk Bashir Uddin, held intensive sessions from 12:30pm to 5:30pm (3:30am Bangladesh time) on each day. The final day’s talks followed the same schedule.
The delegation included: National Security Adviser Dr Khalilur Rahman, Commerce Secretary Mahbubur Rahman, and Additional Commerce Secretary Nazneen Kausar Chowdhury.
On the US side, the talks were led by Assistant US Trade Representative Brendan Lynch, with participation from senior trade and customs officials.
In a bid to persuade the Trump administration, Bangladesh has taken a multi-pronged approach to reduce its trade imbalance with the US, including:
- Commitment to purchase 25 Boeing aircraft over the next few years, worth over $3 billion
- Signing an MOU to import 700,000 tonnes of US wheat annually for five years – a first for the government
- Plans to increase imports of soybeans, LNG, cotton, and military equipment
- Private sector engagement: A separate delegation of Bangladeshi business leaders is currently in the US, holding talks on importing agricultural and industrial goods
These moves are seen as part of a broader “incentive strategy” to demonstrate Bangladesh’s willingness to balance trade and strengthen bilateral ties.
Currently, Bangladeshi goods enter the US market with an average tariff of 15.5%. The proposed 35% countervailing duty, announced by President Donald Trump on July 8, would push the effective rate to around 50%, threatening the competitiveness of key sectors, especially ready-made garments, which account for over $8 billion in annual exports.
Trump had initially announced retaliatory tariffs on 60 countries, including Bangladesh, on April 2, but suspended their implementation for three months. With that window now closed, the August 1 deadline looms large.