The second-round talks are being held at Washington from 9–11 July 2025.
Bangladesh has started the second round of negotiations with the US in Washington, DC, from 9 to 11 July 2025, in an effort to stop the implementation of a proposed 35% tariff on its exports.
The tariff, announced by US President Donald Trump in a formal letter to Chief Adviser Muhammad Yunus, is scheduled to take effect on 1 August 2025. It poses a serious threat to Bangladesh’s USD 8.4 billion export market to the US, particularly in the ready-made garments sector.
If imposed, the tariff could raise the cost of Bangladeshi products in the US by over 50%, making them less competitive. Buyers may shift to countries like Vietnam or India, which currently face lower US tariffs. This could lead to a loss of orders, factory shutdowns, and job losses in Bangladesh.
A shirt currently priced at USD 10 and subject to a 16% duty now sells for USD 11.16 in the US. Under the new 35% tariff, the same shirt would cost USD 15.10 — a 51% price increase.
Bangladesh’s delegation is led by Commerce Adviser Sheikh Bashir Uddin, with senior officials joining both in person and online. The talks aim to reduce the tariff impact and secure improved trade terms. The first round of talks held in late June showed some initial progress.
Bangladesh is among 14 countries affected by the proposed US tariff policy. Officials are hopeful that the ongoing dialogue could lead to preferential trade arrangements, especially for key sectors like textiles, apparel, leather, and pharmaceuticals.
