Trump Warns of 35% Tariff on Bangladeshi Exports in Letter to Dr Muhammad Yunus

In a direct diplomatic message, former US President Donald J. Trump has issued a stern warning to Bangladesh, threatening to impose a 35% tariff on all Bangladeshi exports to the United States starting 1 August 2025, should trade imbalances remain unresolved. The warning was delivered via a formal letter addressed to Professor Muhammad Yunus, Chief Adviser to Bangladesh’s interim government. Trump also published the letter publicly on his social media platform, Truth Social.

The letter follows a previous move in April, when the United States imposed a 37% tariff on certain Bangladeshi products. In response, Dr Yunus had written to President Trump, requesting an extension to negotiate a way forward. Trump had granted a three-month grace period, encouraging countries with high trade deficits to engage in bilateral agreements with the US. Since then, only the United Kingdom and Vietnam have reached trade deals, while discussions with India are reportedly near conclusion.

As the initial deadline approached, Trump extended the grace period to 1 August and dispatched official letters to 14 nations, including Bangladesh. In his letter to Dr Yunus, Trump made it clear that failure to reduce the trade deficit would trigger a steep tariff hike on all Bangladeshi imports into the US. Below is a translated and summarised version of the letter's key points:

The White House, Washington
7 July 2025
To: Professor Muhammad Yunus
Chief Adviser, Government of the People’s Republic of Bangladesh, Dhaka

Dear Professor Yunus,

It is an honour to address you as part of our ongoing effort to strengthen and balance our trade relationship. While the United States has continued to engage with Bangladesh, a significant and sustained trade deficit remains a concern.

We are committed to forging a path forward—but it must be rooted in fair and reciprocal trade. For this reason, we invite Bangladesh to participate more equitably in the world’s largest economy. Despite years of dialogue, persistent tariff and non-tariff barriers have resulted in a long-standing imbalance that we can no longer afford to ignore.

Regrettably, our commercial ties remain one-sided. Therefore, effective 1 August 2025, the United States will impose a 35% blanket tariff on all imports from Bangladesh. This will be in addition to existing sector-specific duties. Attempts to bypass this via transshipment will not be tolerated—such goods will also be subject to the full tariff.

Please understand, this figure is modest compared to the actual imbalance that exists. However, if Bangladeshi firms choose to manufacture goods within the United States, these tariffs will not apply. In fact, we are committed to facilitating the approval process swiftly—often within weeks.

Should Bangladesh choose to impose reciprocal tariffs on US goods, those will simply be added on top of the 35% duty. This measure is being taken not as a punitive action, but as a necessary response to Bangladesh’s longstanding policies that have disadvantaged our economy and now threaten our national security.

We remain hopeful that Bangladesh will take the steps needed to liberalise its trade environment. Should your government reconsider its current tariff structure and reduce trade barriers, we are open to reviewing the terms outlined in this letter.

The future of our economic relationship can and should be collaborative—and we assure you, the United States will not disappoint as a trading partner.

Thank you for your attention to this urgent matter.

With best regards,
Donald J. Trump

The letter marks a significant moment in US-Bangladesh relations, signalling growing pressure on Dhaka to reform its trade policies and engage more constructively with global partners. Economic analysts suggest that failure to reach a trade agreement could deal a serious blow to Bangladesh’s export sector—particularly the ready-made garment industry, which heavily relies on access to the US market.