News Flash
DHAKA, Sept 11, 2025 (BSS) - A US trade delegation will arrive in the capital next week to discuss progress on finalizing the possible trade deal with the USA alongside talking about reducing further the reciprocal 20% tariff currently imposed on Bangladeshi exports to the US market.
“We’re trying to get a further tariff cut on our exports to the USA. The negotiations will focus on expediting the efforts for finalizing a trade agreement alongside securing a further cut in the tariff during the delegation’s visit,” Commerce Secretary Mahbubur Rahman told the BSS this afternoon.
The visit of the United States Trade Representative (USTR) team starting Sunday, will be lead by Brendan Lynch, the assistant USTR for South and Central Asia.
The Commerce Secretary said that during the Bangladesh delegation’s last visit to the USA over the tariff issue, it was also discussed with the concerned US side to reduce further the reciprocal tariff on Bangladeshi exports to the USA from the reduced 20 percent.
He informed that they would hold discussions on progressing further about finalizing the trade deal with the USA.
Earlier, Commerce Adviser Sk. Bashir Uddin and National Security Adviser Khalilur Rahman told reporters that both countries are negotiating to lower further the reciprocal duty on Bangladeshi goods from 20%.
According to the Commerce Ministry officials, a draft trade agreement has already been prepared following discussions with the USTR officials. If there is progress in the upcoming negotiations, the draft will be finalised with necessary amendments.
Earlier in the last month, the US reduced its tariff rate on goods from Bangladesh to 20 percent, a significant reduction from the previous 35 percent, after a final round of intense negotiations in Washington.
The announcement was made by the White House, after the final round of the talks in Washington DC between Bangladeshi officials and the Office of the United States Trade Representative (USTR), the main body responsible for overseeing US trade policy.
However, a formal agreement is yet to be signed although there were negotiations with the US side in different times, added the Commerce Secretary.
Commerce ministry officials said that Bangladesh is seeking further cut in the duty and thus conclude an agreement with Washington. To this end, the commerce ministry sought additional negotiations time, which has encouraged the USTR delegation’s visit.
During their visit, the USTR delegation is likely to hold meetings with the commerce ministry officials, as well as with Chief Adviser Professor Dr Muhammad Yunus, Foreign Affairs Adviser Md Touhid Hossain, and Foreign Secretary Asad Alam Siam.
According to industry insiders, the Trump administration’s imposition of higher reciprocal tariffs on India and China, two of Bangladesh's main competitors in the global readymade garments sector, is definitely an advantage for Bangladesh.
The United States has already imposed 50 percent and 30 percent reciprocal tariffs on Indian and Chinese shipments, respectively. In comparison, the rate is 20 percent for Bangladeshi goods, which gives Bangladesh an edge in positioning itself as an alternative sourcing hub for international retailers and brands.
Speaking at an event recently, Dr Zahid Hussain, a former lead economist at the World Bank's Dhaka office, estimated that local exporters, particularly in the readymade garment sector, could secure up to $2 billion in additional orders, largely redirected from India and China, due to the tariff boon.
