Finance Adviser signals further talks with US to lower tariff rates

Finance Adviser Salehuddin Ahmed announced on Wednesday that the proposed 20 percent reciprocal tariff on Bangladeshi imports to the United States is not yet finalised, opening the door for additional negotiations to further reduce the rate. 

Speaking to reporters after meetings of the Advisory Council Committees on Government Procurement and Economic Affairs, he provided updates on the ongoing discussions.

On July 31, the US lowered the tariff on Bangladeshi products from 35 percent to 20 percent following a month of negotiations. 

When asked if Bangladesh would pursue further reductions, Salehuddin confirmed, “Yes, we will. The commerce adviser is still abroad, but I have spoken with the vice president of the US Chamber of Commerce, who expressed a positive stance toward Bangladesh.”

He noted that US businesses view Bangladesh favorably, citing the country’s repayment of debts to companies like Chevron and MetLife.

Salehuddin emphasised that no formal agreement has been signed, stating, “Before finalising, we will assess where further tariff reductions are feasible and evaluate our import needs.” 

On whether the revised tariff offers relief, he remarked, “A further reduction would have been preferable. The current rate is reasonable, but not a relief. We’d be better off without this reciprocal tariff.”

He highlighted Bangladesh’s competitive position, particularly in the readymade garment sector, noting, “Our textiles and knits adapt quickly, though weaving may face challenges.” 

Addressing concerns about transparency in the tariff talks, Salehuddin explained, “These are bilateral negotiations, not public multilateral discussions like those in the WTO or UN. Confidentiality is key, as we compete with countries like Vietnam, China, India, and Pakistan.”

Commenting on the broader economy, the adviser said, “We have moved far from the brink of crisis, though it may not be immediately apparent. Challenges like inflation, employment, energy, and tariffs persist, but we are more stable now. Restoring business confidence and boosting trade, which has slowed, are critical next steps.”