In a significant diplomatic effort, Chief Adviser Professor Muhammad Yunus has reached out to US President Donald J Trump, requesting negotiations to reconsider the recently imposed reciprocal tariffs on Bangladeshi goods. Yunus proposed a reduction in tariffs up to 50 per cent on US exports to Bangladesh and requested that the US postpone the application of reciprocal tariffs on Bangladeshi goods for three months. This request aims to provide Bangladesh with adequate time to implement ongoing and planned measures to boost imports from the United States. A formal letter addressed to President Trump outlines Bangladesh’s commitment to supporting America’s trade agenda while urging a reevaluation of the tariff measures that threaten to disrupt bilateral trade relations. Reaffirming commitment to US trade objectives
In the letter, Professor Yunus emphasised Bangladesh’s proactive initiatives to align with US trade priorities since President Trump’s inauguration.
He wrote: "I write to assure you that we in Bangladesh will take all necessary actions to fully support your trade agenda. Shortly after your inauguration, I sent my High Representative to Washington DC to indicate our intent to substantially increase American exports to Bangladesh's fast-growing market of 170 million people. We were the first country to take such a proactive initiative."
Yunus further highlighted the importance of time to implement planned actions, saying: "We will complete the ongoing and planned actions within the next quarter. Please allow us the necessary time to smoothly implement this important work in consultation with US officials. I would therefore like to request you to kindly postpone the application of the reciprocal tariff measure on Bangladesh exports to the US for three months. I most sincerely hope that you will grant this request."
Bangladesh also underscored its role as the first nation to dispatch a high-level representative to Washington DC, signaling its intent to significantly boost American exports to its rapidly expanding consumer base. Additionally, the letter highlighted Bangladesh’s pioneering agreement to import liquefied natural gas (LNG) from the US under a multi-year deal, expressing interest in further collaboration following the lifting of LNG export restrictions by the Trump administration.
Steps to enhance US exports to Bangladesh
The letter details specific measures being undertaken by Bangladesh to enhance imports from the United States, showcasing its commitment to fostering stronger economic ties:
- Increased Imports of Agricultural Products: Bangladesh plans to significantly boost purchases of US farm products such as cotton, wheat, corn, and soybean, directly benefiting American farmers. To expedite the process, dedicated bonded warehousing facilities are being finalized in Bangladesh, offering duty-free access for US cotton.
- Tariff Reductions: Bangladesh currently imposes the lowest tariffs on most US exports in the South Asian region. The letter reaffirms Bangladesh’s commitment to zero tariffs on key agricultural commodities like cotton, wheat, corn, soybean, and scrap metals. Additionally, it proposes a 50% reduction in tariffs on top US export items, including gas turbines, semiconductors, and medical equipment.
- Removal of Non-Tariff Barriers: Bangladesh is actively working to eliminate various non-tariff barriers affecting US exports. This includes removing certain testing requirements, streamlining packaging, labeling, and certification processes, and implementing trade facilitation measures such as simplified customs procedures and standardised regulations.
Call for reciprocity and collaboration
The letter concludes with an appeal to President Trump to reconsider the reciprocal tariffs, emphasising Bangladesh’s consistent efforts to strengthen economic ties with the US.
By highlighting these collaborative steps, Bangladesh seeks to position itself as a reliable trading partner committed to fostering mutual economic growth.
This diplomatic outreach reflects Bangladesh’s determination to resolve trade tensions while reinforcing its value as a key player in global trade. As discussions unfold, all eyes remain on whether the US administration will respond favorably to Bangladesh’s proposals, paving the way for enhanced bilateral cooperation and sustained economic partnership.