President Trump Sends Letter to Bangladesh Imposing 35% Tariff

The US has announced a plan to impose a 35 percent trade tariff on Bangladesh, a slight reduction from the 37 percent rate initially proposed, according to a Reuters report, as the August 1 extended deadline approaches.

While the new rate offers some relief, it falls well short of the 20 percent tariff that officials in Dhaka expected. The government has argued it deserves more favourable terms than competitors such as Vietnam, which recently secured a 20 percent rate.

A Bangladeshi delegation remains in Washington for last-ditch talks with the US Trade Representative's office. The letter was emailed from the White House to the Bangladesh Embassy, USA. Failure to secure a more favourable bilateral agreement by the deadline would see the 35 percent tariff imposed, a significant blow to the country's export-oriented economy.

President Donald Trump yesterday began telling trade partners - from powerhouse suppliers like Japan and South Korea to minor players - that sharply higher US tariffs will start on August 1, marking a new phase in the trade war he launched earlier this year.

The 14 countries sent letters so far, which included smaller exporters like Bangladesh, Serbia, Thailand and Tunisia, hinted at opportunities for additional negotiations while at the same time warning that any reprisal steps would be met with a like-for-like response.

Bangladesh's 35 percent tariff places it among the countries facing the highest rates in the latest round of US trade actions. In an identical letter sent to all 14 nations and released on his Truth Social platform, President Donald Trump warned against any retaliation.

Addressing Chief Adviser Muhammad Yunus, he wrote: "If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 35% that we charge."