High-level delegation heads to Washington for final round of trade talks

In a strategic move to ease a looming 35 per cent US tariff on its exports, Bangladesh plans to purchase 25 Boeing aircraft from the United States.

The move comes ahead of a critical round of tariff negotiations between the two countries, scheduled to take place in Washington DC from 29 to 31 July.

A government delegation, led by commerce adviser Sk Bashir Uddin, will leave Dhaka for Washington on Monday evening.

Commerce secretary Mahbubur Rahman, national security adviser Khalilur Rahman and additional secretary of the commerce ministry Nazneen Kawshar Chowdhury will accompany him.

Commerce secretary Mahbubur Rahman on Sunday said that Bangladesh had been in advanced talks with Boeing to purchase 14 aircraft, but the number had been increased to 25 to help address the reciprocal tariff issue.

He said that the third and final round of tariff talks with the United States Trade Representative (USTR) would begin on Tuesday.

The outcome of the meetings is expected by August 1, when the new tariff regime is scheduled to come into effect.

The Trump administration announced the 35 per cent tariff on Bangladeshi goods on July 8, marking a steep increase from the existing 15–16 per cent rate. The second round of negotiations, held on July 11, ended without agreement.

Mahbubur Rahman said that although the US side initially proposed holding the talks virtually, Bangladesh insisted on in-person discussions at the USTR office.

He further clarified that the aircraft purchase was a commercial agreement with Boeing, rather than a government-to-government deal.

Commerce secretary said that delivery would depend on Boeing’s production capacity and business model, with Bangladesh likely to start receiving the aircraft within one to two years.

Fleet expansion of Biman Bangladesh Airlines has long been part of the government’s strategic aviation plan.

Bangladesh previously signed an agreement to procure Boeing aircraft in 2008, receiving 14 planes between 2011 and 2019.

As part of broader efforts to reduce the trade imbalance, Bangladesh signed a memorandum of understanding on July 20 to import 700,000 tonnes of wheat annually from the US over the next five years.

On July 23, the interim government approved the procurement of 220,000 tonnes of wheat at a rate of $302.75 per tonne.

The US earlier imposed a 37 per cent tariff on Bangladeshi goods in April, which was revised down to 35 per cent on July 8. The hike contrasts sharply with the country’s current average tariff of 15–16 per cent when exporting to the US.

In 2024, Bangladesh exported approximately $8.4 billion worth of goods to the United States, with readymade garments accounting for $7.34 billion—about 88 per cent of the total.

Meanwhile, US exports to Bangladesh were valued at $2.2 billion, resulting in a $6.2 billion trade deficit for the United States.

Commerce secretary also said that other countries, including India, Vietnam and Indonesia, recently ordered large quantities of Boeing aircraft—100 each for India and Vietnam, and 50 for Indonesia.

He reiterated the government’s call for Bangladeshi businesses to diversify their imports, particularly of wheat, cotton and soy, and to engage in B2B-level discussions with US-based associations in relevant sectors.