Bangladesh weighs major US purchases to offset sharp Trump-era tariff hike

Bangladesh weighs major US purchases to offset sharp Trump-era tariff hike

Jul 8, 2025 - 23:14
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Bangladesh weighs major US purchases to offset sharp Trump-era tariff hike
Bangladesh weighs major US purchases to offset sharp Trump-era tariff hike

The interim government is exploring significant purchases of Boeing aircraft and military hardware from the United States as part of efforts to reduce the trade imbalance and mitigate the impact of a newly imposed 35 percent supplementary tariff by President Donald Trump.

Speaking to reporters at the Secretariat on Tuesday, Commerce Secretary Mahbubur Rahman said the move is part of Bangladesh’s broader strategy to expand government-level imports from the US in light of mounting tariff pressure, bdnews24.com reports.

“If the US eases some of the tariffs to support trade, we’re ready to increase government procurement from them,” he said.

Rahman noted that most of Biman Bangladesh Airlines’ fleet comprises Boeing aircraft and the country’s aviation infrastructure is aligned with the American manufacturer. “We’re preparing to place orders for new planes and are already in talks with Boeing,” he added.

The previous Awami League government had pledged to buy 10 wide-body aircraft from European rival Airbus, but that deal has stalled under the current administration — marking the first indication of a policy shift back to Boeing.

Rahman also said Bangladesh would boost imports of tariff-free US cotton and prioritise American suppliers in government grain tenders. “This is how we plan to broaden US trade ties. A large portion of our military transport and equipment is already sourced from the US,” he said.

He clarified that the term “military hardware” mainly refers to armoured vehicles and logistical equipment, not weapons systems. “There’s no pressure from Washington. They’ve simply requested procurement preference, and we’re open to it,” he said.

The statement comes a day after President Trump formally notified Chief Adviser Muhammad Yunus of the decision to impose a 35 percent supplementary tariff on all Bangladeshi exports to the US.

Trump had initially announced steep tariff hikes on over 100 countries in April, including a 37 percent increase on Bangladeshi goods. Following diplomatic appeals, Yunus sought a three-month suspension and offered steps to narrow the trade gap, prompting ongoing negotiations.

Even though Bangladesh reduced duties on 626 items in its national budget, the US proceeded with the 35 percent hike, raising average tariffs on Bangladeshi exports from 15 percent to 50 percent.

The move is expected to deal a severe blow to Bangladesh’s garment sector — the country’s top export industry — with the US being its largest single market.

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