Need for prudent trade negotiation with US

The time extension granted for the implementation of the new US tariff on Bangladeshi products expired on 9 July 2025. Immediately after the deadline, President Trump reinstated a revised 35 percent duty on Bangladeshi imports, set to take effect from 1 August 2025.

This move has already begun to seriously impact Bangladesh's ready-made garments (RMG) industry. A substantial number of export orders from US companies and their subsidiaries are being cancelled, with buyers stating that they will resume orders only after the matter is resolved and the duty rate finalised. Bangladesh is currently engaged in negotiations with the US administration, but two rounds of talks have so far yielded no tangible results. A third round is expected to be held soon.

The consequences of such a steep duty are potentially devastating. The RMG sector, heavily dependent on the US market, stands to lose a significant amount of foreign exchange. Should the situation remain unresolved, many factories may be forced to close down, which would deal a heavy blow to our economy and employment.

I urge the government to treat this issue with the utmost seriousness and to act prudently. Failure to secure a favourable outcome would expose weaknesses in our foreign trade negotiation capacity. The public has high expectations from the current government, which operates with expert advisers and seasoned professionals. It is essential that we identify the root causes behind the imposition of such a punitive duty and actively consider engaging professional trade lobbyists within the Trump administration to advocate for Bangladesh's interests.

Without a well-coordinated, strategic approach, all current efforts may ultimately prove fruitless.

Abu Taher

Senior Deputy Director (P & P)

Kawran Bazar, Dhaka

abutaher011@gmail.com