US Plans 35% Tariff on Bangladesh Amid Trade Talks

The United States has proposed imposing a 35 percent trade tariff on Bangladesh starting August 1, a slight decrease from the initially proposed 37 percent rate, despite Bangladesh's expectation of a 20 percent tariff similar to Vietnam's. Bangladesh is currently engaged in critical negotiations with the U.S. Trade Representative's office to secure more favorable terms, including possible zero-duty access for many U.S. goods in exchange for tariff relief. The U.S. aims to shift Bangladesh from the WTO's Most Favored Nation system to a bilateral agreement that would require Dhaka to follow U.S. trade restrictions, such as embargoes on China. Bangladesh has indicated willingness to increase imports of American products like LNG, aircraft, and agricultural goods but resists adhering to U.S. domestic laws in international trade, preferring WTO regulations for any agreement. Failure to finalize a deal by the deadline would result in a punitive tariff regime, significantly impacting Bangladesh's export-dependent economy. Both sides continue to negotiate complex terms with the hope of reaching an agreement that avoids the harsh tariffs.