The United States President Donald Trump has sent letters to several countries, including Bangladesh, announcing his administration’s decision to impose a 35% tariff on goods entering the United States. This decision is scheduled to take effect on August 1.
Earlier, on April 2, President Trump imposed a high reciprocal tariff on imports from several countries, including Bangladesh. However, he later suspended the implementation for three months, a period that ends on July 9. During this suspension, the U.S. entered negotiations with various countries and has since sent Bangladesh a draft trade agreement related to reciprocal tariffs. According to relevant sources, uncertainty still remains over whether the agreement will be finalized by the July 9 deadline.
Some countries have already signed trade agreements with the U.S., and President Trump has stated that several more agreements will be announced within the next 48 hours. However, he has not clarified what will happen to countries that do not sign agreements within the timeframe. U.S. Treasury Secretary Scott Besant also confirmed that many countries have sent proposals for agreements ahead of the July 9 deadline.
Officials at Bangladesh’s Ministry of Commerce have reported difficulty in securing a meeting schedule with the U.S., which has delayed Bangladesh’s ability to finalize the agreement. Only one meeting has been held so far, with another planned for July 9. If both parties reach an understanding in that meeting, the agreement could be finalized swiftly.
A high-level meeting between the two countries was held in Washington on June 26, with Khalilur Rahman, National Security Adviser of the interim government of Bangladesh, attending on behalf of Bangladesh. Another meeting took place on July 3, where Trade Adviser Sheikh Bashir Uddin participated. He mentioned that although tariffs are being imposed, the U.S. remains sensitive about preserving Bangladesh’s competitiveness.
Multiple sources have expressed concerns about the agreement beyond just the tariff rates, citing several conditions that may be difficult for a sovereign nation to accept—conditions that could be even more significant than the tariff rates themselves. For example, under the proposed agreement, if the U.S. imposes sanctions on a country or company, Bangladesh would be required to follow suit. Additionally, if the U.S. levies extra tariffs on a country, Bangladesh would also need to do the same.
There is also a condition reportedly included that prohibits Bangladesh from engaging in any defense or military-related dealings with certain countries. A U.S. government-affiliated source in Dhaka hinted that the draft might contain clauses aimed at preventing Bangladesh from entering into defense-related agreements with China.
When asked whether the draft specifically mentions any country like China, a source from the Ministry of Commerce said that no specific countries are named in the draft. Instead, a non-disclosure agreement was signed between the U.S. and Bangladesh concerning the content of the draft. The source also stated that Bangladesh has not agreed to any risky or compromising conditions, which is why the agreement has not yet been finalized. The U.S. has not clearly clarified its stance on the issues Bangladesh is unwilling to accept. These matters may become clearer during or after the July 9 meeting.
The commerce ministry source further added that unless Bangladesh agrees to all the conditions in the agreement, it will not be signed. If both parties agree, then it might go ahead. However, there are several points where Bangladesh has not yet agreed. If the U.S. does not accept Bangladesh’s stance on these, the agreement will not proceed. Although July 9 is a target date, it is not a hard deadline—negotiations may continue beyond that.
The U.S. is the single largest export destination for Bangladeshi products. Currently, an average of 15% duty is imposed on Bangladeshi garments exported to the U.S. Despite this tariff rate, the U.S. imported $7.34 billion worth of garments from Bangladesh in 2024, an increase from 2023. In the first four months of this year alone, Bangladesh’s garment exports to the U.S. rose by 29.34%. In terms of value, 87% of Bangladesh’s total exports to the U.S. consist of ready-made garments.