Bangladesh Requests Three-Month Pause On US Tariffs, Proposes 50% Cut In Import Duties

In a significant development, Bangladesh Chief Adviser Muhammad Yunus has reached out to US President Donald Trump, urging him to reconsider the recently imposed reciprocal tariffs on Bangladeshi goods.

In a letter to Trump, Yunus proposed a 50% reduction in tariffs on US exports to Bangladesh and requested Washington to postpone the tariffs on Bangladeshi goods for three months to provide Dhaka with adequate time to implement measures to boost imports from the US.

Trump has announced sweeping tariffs on several countries, ranging from 10% to 50% on imports from dozens of countries and economic regions, including a hefty 37% tariff on Bangladeshi goods. The European Union will face a 20% tariff, while China is subject to 34% reciprocal tariff and India 26% among others.

Yunus Vows To Support Trump’s ‘Trade Agenda’
In the letter to Trump, Yunus said, “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.”

“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,” he added.

Yunus also underscored Bangladesh’s role as the first nation to dispatch a high-level representative to the US, signaling its intent to significantly boost American exports to its rapidly expanding customer base. He also highlighted Bangladesh’s agreement to import LNG from the US.

The Bangladeshi interim leader proposed several measures to strengthen economic ties with the US, including increased agricultural imports from Washington, tariff reductions by 50% and the removal of non-tariff barriers.

Yunus said Bangladesh imposes the lowest tariffs on US exports in the South Asian region and is willing to remove all tariffs on agricultural commodities like cotton, wheat, corn, soybean and scrap metals. He concluded the letter by urging Trump to reconsider the reciprocal tariffs.

Impact Of US Tariffs On Bangladesh
Textile and garment production accounts for about 80 percent of exports in Bangladesh, and the industry has been rebuilding after it was hard hit in a revolution that toppled the government last year. However, Trump’s punishing new tariffs of 37% sparked alarm and raised concerns that the industry would lose trade.

Bangladesh, the second-largest producer after China, manufactures garments for global brands — including US firms such as Gap Inc, Tommy Hilfiger and Levi Strauss. The tariffs are bad news for the South Asian nation, as its stocks tumbled by 31 points on Sunday.

Manufacturers said the impact had been near immediate. Several industry leaders said US buyers have begun halting orders from Bangladesh. The interim government has pleaded with US-based buyers for their understanding while it discusses measures to mitigate the impact.

Bangladesh exported approximately $8.4 billion worth of goods to the US last year, of which $7.34 billion came from the ready-made garments sector. Bangladesh’s tax authority, the National Board of Revenue, is also expected to meet to review the fallout from the tariffs.