The United States has indicated that it may reduce additional tariffs on Bangladeshi exports if the bilateral trade deficit continues to narrow, according to Bangladesh’s trade officials following high-level talks in Dhaka.
The assurance came during a meeting at the Secretariat on Sunday between a visiting US trade delegation led by Assistant US Trade Representative Brendan Lynch and Bangladesh’s Ministry of Commerce.
The US team is in Dhaka for a three-day visit aimed at advancing a potential bilateral trade agreement.
Speaking to reporters after the meeting, Bangladesh’s Commerce Adviser Sheikh Bashir Uddin said discussions focused on reducing the current trade imbalance and the possibility of tariff concessions.
“We have requested the U.S. side to consider lowering the 20% countervailing duties currently imposed on our exports, in view of the shrinking trade deficit. They assured us there is potential for tariff reduction if this trend continues,” said the adviser.
While no formal tariff agreement has been signed, both sides are working toward a broader trade framework that would address tariff structures, sector-specific commitments, and long-term commercial cooperation.
“Our talks today were part of ongoing discussions within the framework of a joint declaration. We reviewed progress on trade commitments, including our procurement of goods such as aircraft from the U.S.,” Bashir Uddin added.
He noted that Bangladesh has made significant progress in addressing the trade gap by increasing imports of US agricultural and energy products, which are currently available at competitive prices. Key commodities include wheat, soybeans, and cotton.
“Our purchases from the US — particularly in agriculture and energy — are helping reduce the deficit. These are not just transactional; they are part of a broader strategic effort,” the adviser said.
He also highlighted that the textile sector, heavily reliant on imported U.S. cotton, is another area under review for potential tariff adjustments.
Commerce Secretary Mahbubur Rahman added that the current trade deficit with the US stands at approximately $6 billion. He outlined Bangladesh’s recent progress in fulfilling its import commitments:
“Last fiscal year, we imported around $600 million worth of cotton. In just the first two months of this year, we’ve already imported $276 million worth of cotton and wheat combined. This shows we’re making real progress,” he said.
Asked about the timeline for a possible tariff agreement, the secretary said the US delegation would provide a timeframe after returning to Washington for further internal consultations.
Responding to concerns over Bangladesh purchasing wheat from the US at a higher cost compared to Russia, the commerce adviser emphasized quality differences:
“US wheat contains 10–15% more protein than Russian wheat, which significantly affects pricing. Protein content plays a critical role in wheat valuation,” he explained.
Regarding aircraft purchases from Boeing, the adviser clarified that such deals are part of a long-term trade balancing strategy:
“Aircraft orders take years to fulfill. These are not short-term transactions, but long-term commitments that will help reduce the trade deficit over time,” he said.
While concrete tariff reductions remain under negotiation, the latest round of talks marks a step forward in strengthening trade ties between Bangladesh and the United States.
With a clear US. signal linking tariff relief to a shrinking trade gap, Dhaka is now focused on sustaining import diversification and fulfilling existing commitments to unlock further benefits in bilateral trade.