Bangladesh has formally requested the United States Trade Representative (USTR) to schedule the third and final round of tariff negotiations, seeking a start date of 26th July. Commerce Secretary Mahbubur Rahman stated that the USTR can choose any date from 26th July onward at its convenience, and Bangladesh’s negotiation team is prepared to travel to the US once the date is confirmed.
The move comes after Bangladesh submitted its position paper following the second round of discussions, emphasizing commitments to boost US imports and reduce tariffs on specific items. The government also outlined non-trade commitments it considers non-harmful. As part of the ongoing negotiations, Bangladesh has agreed to lower tariffs on several US goods and increase imports from America.
The negotiations are critical as the Trump administration is set to impose new reciprocal tariffs starting 1st August unless the current pause on tariff adjustments is extended. Without an extension, Bangladesh’s exports, particularly in the garment sector, may face significant challenges. Over 1,300 factories affiliated with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) could be adversely affected, especially those exporting predominantly to the US. Data shows that 100 factories export nearly all of their products to the US, with others exporting substantial shares.
Bangladesh is seeking zero tariffs or rates lower than Vietnam’s to maintain its competitiveness in the US market, which last year saw garment exports worth over US $ 8.2 billion. BGMEA President Mahmud Hasan Khan expressed hope for a tariff reduction but noted that the decision to extend the tariff pause rests with the US administration, with the deadline approaching swiftly.
US retailers and brands are also watching the situation closely, expecting that any additional tariff burden will be shifted onto local suppliers to mitigate the impact of the 35% tariffs already in place. The outcome of the upcoming negotiations could significantly influence Bangladesh’s export prospects and economic stability in the coming months.
