TRUMP-ERA TARIFFBD to send two letters to US shortly

In response to the 37% tariff imposed by the Trump administration on Bangladesh's export products, the interim government will send two letters to the United States within the next 48 hours, Chief Adviser’s Press Secretary Shafiqul Alam said on Sunday.

One of the letters will be addressed by Chief Adviser Prof Muhammad Yunus to US President Donald Trump while the other will be sent by the finance adviser to the US Trade Representative (USTR), he said during a briefing following a review meeting at the Ministry of Finance.

The letters will outline the steps Bangladesh plans to take in response to the tariff issue, aiming to safeguard the country's business interests and ensure a mutually beneficial trade relationship.

The review meeting was chaired by Finance Adviser Dr Salehuddin Ahmed and attended by four other advisers, business representatives, officials and the Bangladesh Bank governor.

The meeting also focused on the impact of the new tariff on the export sector and strategies for expanding trade.

According to Shafiqul Alam, the letters will highlight the government's business-friendly approach and its plans to ensure that both nations benefit from enhanced trade. The focus will be on expanding Bangladesh's business in the world's largest market, the United States.

Plan of Action

In response to the US tariff, Bangladesh has devised a four-point action plan, as shared by the finance adviser: Expanding trade relations between Bangladesh and the US, strengthening the competitiveness of Bangladesh's ready-made garment sector to outperform other competitors, increasing imports of not only products but also services from the US and eliminating both official and non-official non-tariff trade barriers.

Chief Adviser's High Representative Dr Khalilur Rahman revealed that Bangladesh's ambassador to the US has recently discussed the matter with officials at the US Trade Representative's office, where signs of alignment with Bangladesh's approach were noted.

He expressed the hope that the next 1-2 days will finalise the course of action.

Industry Perspectives

Planning Adviser Dr Wahiduddin Mahmud emphasised the global impact of the tariff issue, noting that China and other major economies are also taking countermeasures.

He acknowledged uncertainty about the potential outcomes but assured that Bangladesh will work to protect its key export sector - garment industry - by focusing on improving productivity without cutting labour costs, which are already at their lowest.

Syed Nasim Manzur, a business representative, said the steps being taken by the interim government have brought relief to the business community, signalling a clear action plan.

He urged the government to explore other potential areas of trade with the US beyond garments, which remain Bangladesh's largest export sector.