In a formal letter dated, US President Donald Trump informed Chief Adviser Prof Muhammad Yunus, of a new 35% tariff on all Bangladeshi products entering the United States. The tariff will take effect on August 1.
In the letter, Trump described it as an “honor” to communicate this decision, saying it demonstrates the strength of the trading relationship between the two countries. However, he stressed that the United States could no longer accept what he called a “significant Trade Deficit” caused by Bangladesh’s “Tariff, and Non Tariff, Policies and Trade Barriers.”
Trump wrote that the US had decided to move forward with Bangladesh, “but only with more balanced, and fair, TRADE.” He invited Bangladesh and its companies to invest directly in the US, noting that there would be no tariffs on products made inside the United States. He promised fast-track approvals for such investments “in a matter of weeks.”
The letter explicitly warned that any increase in Bangladesh’s tariffs would lead to a matching increase on top of the 35% rate. Trump called the existing deficit a threat to the US economy and national security, saying the new tariffs were “necessary to correct the many years” of one-sided policies.
Trump also left the door open to adjustments, writing that if Bangladesh chose to eliminate its own tariff and non-tariff barriers and open its markets to the US, Washington might reconsider the tariff levels.
"These Tariffs may be modified, upward or downward, depending on our relationship with your Country," said the letter.
He concluded by assuring CA Yunus that Bangladesh would “never be disappointed with The United States of America.”