PoriPurno News Desk | August 02, 2025
In a strategic move to address the looming threat of a 35% reciprocal tariff imposed by the United States, Bangladesh has decided to significantly ramp up imports from the U.S., targeting $1.5 billion worth of wheat, pulses, and liquefied natural gas (LNG) over the next year. The initiative, led by the government, aims to reduce the trade imbalance and build goodwill ahead of high-stakes trade negotiations in Washington.
The reciprocal tariff, which is set to take effect on August 1, has prompted urgent discussions between the two countries. As part of its response, Dhaka is not only increasing government-to-government (G2G) imports but also encouraging private sector participation. A trade delegation from Bangladesh, composed of top business leaders and textile industry representatives, is en route to the United States to finalize procurement deals with American exporters.
Government-Led Import Drive
Commerce Secretary Mahbubur Rahman confirmed to The Business Standard that Bangladesh is committed to importing an additional $1.5 billion in U.S. goods within the next 12 to 18 months. This effort is a key part of broader negotiations aimed at reducing the newly announced retaliatory tariff on Bangladeshi exports.
“The government will manage $1.5 billion in additional imports directly. The private sector will contribute further, increasing the total to nearly $3 billion,” said Rahman before his departure for Washington on July 28.
Bangladesh has already signed a G2G agreement to purchase 700,000 tonnes of wheat from the U.S. annually and has approved a proposal to buy an additional 220,000 tonnes. Government officials also revealed plans to enhance LNG imports from the U.S. and to finalize a long-discussed agreement to acquire 25 Boeing aircraft for Biman Bangladesh Airlines.
Private Sector Joins the Mission
Complementing the government’s efforts, major Bangladeshi corporations are also stepping up. Shawkot Aziz Russell, President of the Bangladesh Textile Mills Association (BTMA), is leading a business delegation to negotiate increased imports of cotton, soybeans, wheat, and pulses.
“Bangladesh currently imports cotton worth around $361 million from the U.S. We believe this can be increased four to five times to $2 billion,” said Russell. However, he pointed out that American cotton costs an additional $0.03 to $0.04 per pound due to distance and logistics, and requested government support to absorb this higher cost.
Russell proposed that the government create a centralized bonded warehouse to store high-priced cotton and sell it to local manufacturers at regular rates. He also recommended increasing the Export Development Fund (EDF) limit for individual businesses from $20 million to $30 million and reducing the interest rate to 1% to facilitate larger imports.
Leading Importers on Board
Representatives from leading commodity importers — including Meghna Group, City Group, and TK Group — are also part of the delegation or coordinating from Dhaka. These conglomerates are Bangladesh’s top importers of soybeans, wheat, and pulses.
Muhammad Mostafa Haider, Director of TK Group and President of the Bangladesh Edible Oil Association, confirmed that while he is unable to join the U.S. trip due to visa issues, a company representative will attend on his behalf.
“The government has asked us to increase imports of soybeans and wheat from the United States. Although U.S. soybeans are of premium quality, they are more expensive,” Haider said. He added that importing wheat from the U.S. incurs an additional cost of $20–$30 per tonne, but the superior quality justifies the expense. “We’ll try to support the government’s request, but if the higher costs pose a challenge, we may seek government support,” he added.
Meghna Group’s Deputy Manager Taslim Shahriar confirmed that a senior company official would attend the U.S. meetings, emphasizing that the company would do its best to increase imports in the national interest.
Challenges in Pulse Imports
Haji Shafi Mahmud, President of the Bangladesh Pulse Traders Association, revealed that the Commerce Ministry has requested his organization to increase pulse imports from the U.S. However, he noted that most traders import pulses in smaller quantities — typically 400 to 500 tonnes — and usually rely on suppliers from Canada, Australia, and India due to price competitiveness.
“The U.S. market offers high-quality pulses, but the cost is significantly higher. We’ve informed the ministry that major conglomerates like Meghna, City, TK, and Bashundhara now dominate the pulse market. These companies import 30,000 tonnes at a time, so we suggested the government coordinate with them directly,” said Haji Shafi.
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High-Level Negotiations Underway in Washington
While private sector representatives meet U.S. exporters to finalize purchase agreements, the official Bangladeshi delegation is engaging in high-level negotiations with representatives from the United States Trade Representative (USTR). The team includes Commerce Secretary Mahbubur Rahman, Trade Advisor Sheikh Bashir Uddin, National Security Adviser Khalilur Rahman, and WTO Cell Director General Nazneen Kauser Chowdhury.
Commerce Secretary Rahman drew attention to Vietnam’s precedent, noting that despite a $123 billion trade deficit with the U.S., Vietnam successfully negotiated a reduction in tariff rates to 20%. “Bangladesh’s trade deficit with the U.S. is only $6 billion. We believe our tariff rate can be even lower than Vietnam’s,” he said confidently.
Current U.S. Import Figures
According to data from the Bangladesh Bank for FY 2023–24:
- Cotton imports totaled $7.9 billion, with $361 million from the U.S.
- Wheat imports reached $1.76 billion, including $43.4 million from the U.S.
- Soybean imports were valued at $923 million, 36.8% ($339 million) of which came from the U.S.
This newly intensified import drive — both governmental and private — is seen as a crucial balancing act in the broader diplomatic strategy to maintain favorable trade conditions with one of Bangladesh’s key global partners.
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