Dhaka seeks 3-month pause on new tariffs

Chief Adviser Professor Muhammad Yunus has requested US President Donald Trump to postpone the imposition of 37 percent reciprocal tariff on Bangladeshi exports by three months.

In a letter sent to Trump yesterday, Yunus made the appeal to allow the interim government time to implement its plan to significantly increase imports from the US, the chief adviser's office said in a statement.

This additional time is necessary for the smooth implementation of this initiative in consultation with US officials, according to the statement.

In another letter to the US Trade Representative (USTR),  Commerce Adviser Sk Bashir Uddin said Bangladesh was considering an option to extend the zero tariff facility to 100 US products on top of the 190 already enjoying it.

In his letter to Trump, Yunus outlined a series of steps the government is taking to reduce the trade imbalance between Bangladesh and the US, including the removal of both tariff and non-tariff barriers.

"We are working on 50 percent reduction of tariff on top US export items such as gas turbines, semiconductors and medical equipment," Yunus wrote. "We are also removing an array of non-tariff barriers to US exports."

He added, "We are eliminating certain testing requirements, rationalising packaging, labelling and certification requirements and undertaking trade facilitation measures such as simplifying customs procedures and standards."

These measures, Yunus emphasised, are aimed at creating a more open and predictable trade environment that supports increased US exports to Bangladesh.

The letter did not explain the reason behind choosing a three-month timeframe for the deferral request. Different international media outlets reported that Vietnam has also sought a three-month deferral of the reciprocal tariff on Vietnamese goods.

Trump has remained defiant since unleashing the blitz of levies on stunned countries around the world on April 2, insisting that his policies "will never change" even as markets went into a tailspin.

But his staggered deadlines have left space for some countries to negotiate, even as he insisted he would stand firm and his administration warned against any retaliation, the AFP reported.

In a post on Truth Social yesterday, Trump threatened to terminate talks with China concerning their requested meetings with the US if China did not withdraw its retaliatory tariffs.

He, however, added that negotiations with other countries, which have also requested meetings, will "begin taking place immediately".

More than 50 countries have sought talks with Trump to negotiate relief from the punitive tariffs on exports to the US, the White House said Sunday, as trade partners braced for fallout, the AFP said.

Yunus, in his letter to Trump, said that Bangladesh was the first to take "such a proactive initiative", mentioning the visit of his High Representative Khalilur Rahman to Washington, DC, in February, which indicates Bangladesh's intent to substantially increase imports from the US.

The chief adviser also said his government executed the necessary steps to launch Starlink, a US-based satellite internet provider owned by billionaire Elon Musk, in Bangladesh.

"This momentum ushers a new era for US businesses in Bangladesh across a number of advanced tech sectors including civil aviation and defence. We will complete the ongoing and planned actions within the next quarter."

The chief adviser said that Bangladesh, having the lowest tariff on most US exports in South Asia, commits to a zero tariff on American agricultural commodities, as well as on scrap metals.

A key focus of the government's action on the tariff issue is to significantly increase imports of US farm products, including cotton, wheat, corn and soybean, Yunus said.

The government was also finalising a dedicated bonded warehousing facility in Bangladesh where US cotton will have duty-free access, he added.

Yunus also said Bangladesh is the first country to enter into a multi-year agreement to import liquefied natural gas (LNG) from the US, and has been exploring further collaboration since Trump lifted the freeze on LNG export permits.

Commerce Adviser Bashir Uddin, in his letter to the USTR, said the Yunus government was planning a long-term LNG deal with the US. 

He mentioned that Bangladesh has a 6.10 percent weighted average tariff on US products, where raw cotton and steel scrap face 0 percent and 1 percent tariff, respectively.

He said the government had already held meetings with the trade wing of the US Embassy in Bangladesh to identify trade barriers and "agreed a number of measures to resolve".

The government also initiated reforms to enhance mutually beneficial trade, he said. The reform initiative includes import policy order, simplification of customs procedure, enforcement of intellectual property rights, and protection of trademarks and patent rights.

The government will encourage US private equity access to healthcare and other service sectors of Bangladesh, he said.

Commerce Secretary Mahbubur Rahman said the government will also accept the US's reciprocal certification on import of different American food items.