Bangladesh Planning To Lower Import Duties On Over 100 Goods To Ease Trade Tensions With The US: Report

The move, aimed at smoothing the path for future trade negotiations, was given preliminary approval by the interim administration led by Chief Advisor Muhammad Yunus, the report noted.

Garment exporters, in particular, have expressed concern about potentially losing ground in their most significant market.

Source : PTI

In response to heightened tariff pressures from the United States, Bangladesh is preparing to reduce import duties on more than 100 categories of goods. The move, aimed at smoothing the path for future trade negotiations, was given preliminary approval by the interim administration led by Chief Advisor Muhammad Yunus, according to a report by bdnews24.com. The decision came during a budget planning session with the National Board of Revenue (NBR) held on Monday.

The backdrop to this development is the announcement made by US President Donald Trump on April 2, imposing a universal 10 per cent baseline tariff on all imports and levying even steeper duties on around two dozen countries. Bangladesh found itself subject to a 37 per cent tariff under this new regime, reported PTI. Although the US later postponed the implementation of these additional tariffs by three months, the uncertainty has already had ripple effects across the Bangladeshi industry.

Garment exporters, in particular, have expressed concern about potentially losing ground in their most significant market. Reports suggest that some American buyers have already paused orders in anticipation of trade disruptions.

Proposed Duty Waivers Focus on Government-Level Imports

An official present at the NBR meeting told bdnews24.com, “We proposed zero duties on 100 tariff lines, keeping in mind imports from the United States.” The proposal revolves around specific Harmonised System (HS) codes that define the applicable customs duties for individual or related products.

The list of goods under consideration includes around 15 to 16 items such as oil, gas, weaponry, and components for fighter aircraft and missiles. These products are generally acquired directly by the government under special agreements. As such, officials explained there is no anticipated revenue loss, as these purchases are already subject to duty exemptions.

In addition to duty adjustments, other tax-related measures were also reviewed. Unusually, the upcoming budget will not undergo the traditional parliamentary debate. Instead, it will be refined through public discourse, media debates, and expert commentary before being finalised via ordinance as the Finance Act, the news report noted. Present at the meeting were the financial advisor, the NBR chairman, and other key officials.

Free Trade Agreement Talks Advance with the US

Adding another layer of significance to the trade discussions, a separate report by The Business Standard (TBS) confirmed that the US has agreed "in principle" to pursue a Free Trade Agreement (FTA) with Bangladesh. Commerce Secretary Mahbubur Rahman described this as “a major breakthrough for Bangladesh,” further noting, “The US has already requested a draft of the agreement to expedite the process.”

Should the FTA materialise, it could grant duty-free access to Bangladeshi exports, with the readymade garments (RMG) sector expected to benefit the most. This would offer a much-needed boost to Bangladesh’s export earnings and help cushion the impact of any future trade barriers.