Bashir Optimistic About Resolving US Tariff Issue

Dhaka, 16 April 2025 (BSS) – Commerce Adviser Sk. Bashir Uddin has expressed confidence that the ongoing issue of reciprocal tariffs with the United States will be resolved under the guidance of the Chief Adviser, while leveraging the country’s economic capacity and trade potential.

“The Chief Adviser is closely involved in this matter, and we, in the Advisers' Council, have been holding regular meetings with the relevant parties,” he stated.

Bashir made these remarks during a discussion on the imposition of the 37 per cent reciprocal tariff by the US, the associated challenges, the country’s potential, and possible measures that the government could take. The event, held at Bangladesh Secretariat, was organised by the Bangladesh Secretariat Reporters Forum (BSRF). BSRF President Fasih Uddin Mahtab chaired the event, and General Secretary Masudul Haque moderated the session.

Recently, US President Donald Trump announced a temporary halt on tariffs for most countries for a period of 90 days, signalling that many nations were seeking to negotiate more favourable terms.

Earlier, Chief Adviser Professor Muhammad Yunus had written to US President Donald Trump, requesting a delay in the implementation of reciprocal tariff measures on Bangladesh for an additional three months.

Bashir informed the media that next week, a delegation led by the Chief Adviser’s Special Envoy on International Affairs, Lutfey Siddiqi, along with Commerce Secretary Mabubur Rahman and Finance Adviser, will visit the United States. They will meet with relevant US agencies, including the United States Trade Representative (USTR), to discuss the tariff issue and formulate further steps.

Upon their return, Bashir himself will travel to the US to engage in direct discussions with his counterparts. “We will then present more specific proposals to the US, and, Insha Allah, resolve the issue in line with the directives of the Chief Adviser, combining the country’s economic capabilities and trade potential,” he added.

He further emphasised, “We will not follow incorrect economic policies.”

In efforts to reduce the trade deficit with the US, Bashir noted that the government is exploring complementary economic elements such as properly managing the prices and tariffs on key commodities like animal feed and soybean oil. Additionally, the government is focusing on enhancing infrastructure to improve the competitiveness and quality of products, thereby reducing the trade imbalance.

Bashir highlighted that one of the main objectives of the interim government, under the leadership of Chief Adviser Professor Yunus, is to establish “insaf” (justice). He also pointed out that the government has cleared over Taka 50,000 crore in foreign liabilities in recent months, and inflation is gradually decreasing. The central bank’s Governor has projected that inflation could fall to around 6 per cent by June or July.

In response to a question, he confirmed that the Bangladesh delegation will raise the tariff and non-tariff structure with US authorities during their visit, seeking to understand their concerns and better align the future action plan.

When asked about the lack of response from the USTR following their letter, Bashir said, “We are not worried. Some orders are expected to come to Bangladesh, as rival China still faces tariffs exceeding 100 per cent from the US.”

He added that the country’s ready-made garment (RMG) industry is confident that they will not be adversely impacted by the tariffs.

On the question of Pakistan’s Foreign Secretary visiting Bangladesh, Bashir reiterated, “I have always advocated for trade inclusion and diversification. I have no issue with trading with India, China, or Pakistan. What matters most to me is upholding the interests of the people of Bangladesh. We will trade with all nations for the sake of our people’s interests.”

Regarding the withdrawal of India’s transshipment facility, Bashir stated that the government is not actively seeking alternatives, but rather working to manage the situation. He acknowledged that the withdrawal would involve additional business costs, estimated at around Taka 2,000 crore, but assured that the government, under the directives of the Chief Adviser, was focused on minimising these costs, particularly through improving the cargo handling of Biman (Bangladesh’s national airline).

The government has been able to control inflation by diversifying the market and enhancing supply chains, Bashir said. Similarly, the additional cost incurred due to the loss of India’s transshipment facility could be minimised or even reduced.

On the topic of rice prices, Bashir expressed optimism that the market would stabilise, particularly with a potential bumper harvest due to favourable weather conditions.

Regarding the rising prices of edible oil, Bashir mentioned that the government is working to boost local production and enhance competition within the market to stabilise prices. The move is also aimed at saving foreign currency and reducing bank loans, as the government has been losing around Taka 550 crore in revenue each month due to duty preferences on edible oil imports.

“I am hopeful that the price of edible oil will stabilise again, but I cannot specify when this will happen,” he concluded.