Bangladesh’s interim government says trade talks with the United States are nearing a breakthrough, potentially giving Donald Trump a major win with a strategic partner that has more people than Russia and ranks as the world’s eighth-most populous nation.
Commerce Secretary Mahbubur Rahman said Monday that at least seven rounds of negotiations have taken place, both in person and virtually. “We expect a positive outcome,” he said. U.S. officials have suggested a two-tiered system that would group least developed countries like Bangladesh separately from major trade partners.
Bangladesh was among the hardest hit by Trump’s 37% tariff on exports in April. Its economy, still recovering from political unrest that forced Prime Minister Sheikh Hasina from office last year, is heavily dependent on the garment industry, which makes up 80% of exports and employs millions. A trade deal would ease pressure on that sector and boost confidence in the country’s interim leadership, now headed by Nobel laureate Muhammad Yunus.
The U.S. is Bangladesh’s largest export market, and both sides appear eager to finalize an agreement. Secretary of State Marco Rubio recently held a “positive” call with Yunus, according to Bangladesh’s ambassador to Washington. Rahman said the country is reviewing final documents and expects a consultative decision soon.
Analysts say the deal could deliver a significant foreign policy victory for Trump, especially as Bangladesh has publicly shown a preference for his administration over President Joe Biden’s. Under Biden, the country was excluded from two U.S. democracy summits.
To remain globally competitive, Bangladesh is pushing for a deal equal to or better than the one Vietnam reached with the U.S. last week, which included a 20% tariff on most goods and 40% on transshipped items. Washington, in return, is seeking zero-tariff access for U.S. products, especially in sectors like autos.
A finalized agreement would mark a turning point for U.S.-Bangladesh ties and show Trump’s ability to reengage economically with a growing South Asian power of more than 170 million people, surpassing Russia’s population and solidifying its role on the global stage.