The United States should move swiftly to finalize a trade agreement with Bangladesh, a rising South Asian partner offering both economic and strategic value. With President Donald Trump under pressure for lacking completed trade deals, progress with Bangladesh would give the administration a concrete win.
Talks have been delayed due to procedural setbacks. The U.S. has not yet delivered an annex listing the products it seeks duty-free access for, and a meeting between trade officials originally set for July 8 was pushed to July 9. Bangladesh’s commerce secretary has postponed travel to Washington until the document arrives.
Bangladesh has signaled it is ready to offer tariff concessions on U.S. goods and increase imports of American aircraft, liquefied natural gas, and wheat. Commerce Secretary Mahbubur Rahman emphasized the country’s preference for a deal under World Trade Organization rules rather than U.S. domestic law.
A 37 percent reciprocal tariff on Bangladeshi goods, imposed in April, remains suspended until August 1. The extension gives both sides a short window to complete negotiations.
In 2024, total U.S. goods trade with Bangladesh reached $10.6 billion. U.S. exports totaled $2.2 billion, down 1.5 percent from 2023, while imports rose to $8.4 billion, up 1.1 percent. The U.S. trade deficit with Bangladesh widened slightly to $6.2 billion.
Bangladesh accounted for $7.49 billion, or 6.14 percent, of U.S. textile imports in 2024. While behind China and Vietnam, it has room to grow. If Bangladesh increases its textile exports to the U.S. by just 10 percent annually, it could reach roughly $12.1 billion by 2029 — positioning itself to take market share from China, which currently supplies nearly 30 percent of U.S. imports.
A timely deal would boost U.S. exports and help shift supply chains away from strategic competitors. With talks ongoing and a tariff deadline approaching, the White House has an opportunity to finalize a mutually beneficial agreement with a key ally.