US President Donald Trump has issued a formal letter to Bangladesh’s Chief Advisor, Prof Dr. Muhammad Yunus, imposing a 35 percent tariff on all Bangladeshi exports to the United States starting August 1 2025.
This new blanket tariff comes in addition to existing sector-specific duties and signals a hardline approach to what Trump described as a “major trade imbalance” between the two countries.
“Starting on August 1, 2025, we will charge Bangladesh a Tariff of only 35 percent on any and all Bangladeshi products sent into the United States, separate from all Sectoral Tariffs,” reads the July 7 letter posted on Truth Social.
The letter Yunus warned that attempts to bypass the new tariff by rerouting products through third countries would still trigger the full 35% duty.
Earlier on April 3, Bangladesh faced a 37 percent tariff which. Later, it was kept suspended until July 9 after Prof Yunus sent a letter to Donald Trump, requesting him to reconsider the decision. Goods from the country now face 15 percent tarrif while entering US market.
The fresh tariff has been announced only a day after the US government the trade negotiation deadline until August 1.
In total, the Trump administration on Monday announced reciprocal tariffs on 14 countries, including Bangladesh, Japan, South Korea, Indonesia and Malaysia.
President Trump believes that the tariff is not still sufficient to fully correct the trade deficit with Bangladesh.
“Please understand that the 35% number is far less than what is needed to eliminate the Trade Deficit disparity we have with your Country,” the letter also reads.
However, if Bangladesh or its companies establish manufacturing operations within the US, those products would face no tariff.
The announcement has sent shockwaves through Bangladesh’s export sector, particularly the ready-made garment (RMG) industry, which forms the backbone of the country’s economy.
The US is one of Bangladesh’s largest export markets, with over $8.4 billion in goods shipped annually, $7.34 billion of which came from garments in 2024 alone.
This follows an earlier 37% tariff hike declared by the US on April 2, which had already raised alarm among Bangladeshi exporters and policymakers.
Bangladesh Pursues Bilateral Deal
In response, Bangladesh is actively negotiating a bilateral tariff agreement with US officials to mitigate the new measures. Dr. Khalilur Rahman, national security advisor to the chief advisor, is currently in Washington, D.C., and is scheduled to meet with the Office of the United States Trade Representative (USTR) this Thursday.
Referring to President Trump’s letter to the Chief Adviser, Chief Adviser’s Press Secretary, Shafiqul Alam, in a post on his verified Facebook page today, said that a Bangladeshi trade delegation, led by Commerce Adviser Sk. Bashir Uddin, is currently in the United States and has already held several rounds of meeting with the US trade and tariff officials.
Another scheduled round of talks is set to take place tomorrow.
Expressing his hope that the ongoing bilateral discussions with the US administration would lead to a positive outcome, the Press Secretary wrote, “Dhaka is looking forward to a tariff deal with Washington DC, which will be win-win for both countries.”
Meanwhile, referring to the US President’s letter to the Chief Adviser, Golam Mortoza, Minister (Press) at the Bangladesh Embassy in Washington DC, wrote on his verified Facebook page.
“The 35 percent… is not a final decision. Talks are going on. The next discussion is scheduled for July 9. Bangladesh is making its utmost efforts for a good outcome, and that possibility is not yet over.”
A draft counter-agreement was previously shared by the Trump administration. Bangladesh has responded with proposed revisions and has held multiple rounds of discussions.
According to Commerce Ministry sources, the current draft is being updated based on recent negotiations and will be reviewed in this week’s meeting.
Commerce Secretary Mahbubur Rahman confirmed to the media, “We’ve submitted our feedback twice already. Our delegation is negotiating terms with the US to reach a fair and balanced deal.”
If the agreement is finalized, it will require approval from the Chief Advisor and subsequent vetting by the Advisory Council.
Reducing the Trade Deficit: Bangladesh’s Counterproposal
To address US concerns over the trade imbalance, Bangladesh has proposed increasing imports from the US, focusing on at least 41 key products such as petroleum, cotton, LNG, wheat, soy oil, and LPG.
Bangladesh has also committed to boosting U.S. LNG imports by $1 billion and is redirecting previously planned wheat imports from Ukraine to the U.S.
In addition, Bangladesh has promised to increase its defense procurements from the U.S. and expand its purchases of American-made Boeing aircraft.