US demands zero duty from Bangladesh amid tariff deadline

The US has demanded zero duty facility for a large number of its products from Bangladesh.

Bangladesh's Commerce Secretary, Mahbubur Rahman, confirmed that the Office of the United States Trade Representative (USTR) transmitted an extensive list of goods for which the US seeks complete tariff exemption. While the exact number of items on this list remains undisclosed, Secretary Rahman described it as "very long," indicating the broad scope of Washington's ambitions for enhanced market access in Bangladesh.
These discussions are part of ongoing bilateral trade negotiations that have seen considerable progress. According to Secretary Rahman, "Both the countries have agreed on almost all the issues, except a few things during the negotiations with the USTR in Washington, DC." 
It is noteworthy that Bangladesh already extends zero-duty benefits to a range of American imports. For many years, key agricultural commodities such as cotton, wheat, soybean seeds, and various oils have entered Bangladesh duty-free from the US. This existing framework highlights Bangladesh's historical willingness to facilitate trade with its largest export destination.
However, the decision to grant further zero-duty concessions is not solely within the purview of the Commerce Ministry. Secretary Rahman indicated that an inter-ministerial meeting is scheduled for next Saturday to gather input and consensus from other relevant government bodies, including potentially the Ministry of Finance, Ministry of Agriculture, and the Ministry of Foreign Affairs, given the wide-ranging implications of such trade agreements.
The urgency of these negotiations is underscored by a critical deadline: August 1. This is when a 35 percent reciprocal tariff, previously announced by President Donald Trump, is slated to take effect. This announcement, made on April 2, had already prompted Bangladesh to offer zero-duty facilities on a number of American goods and pledge to increase imports of products like aircraft, liquefied natural gas (LNG), cotton, wheat, and soybeans, in an effort to de-escalate trade tensions.
During earlier rounds of talks in the US, Bangladesh had proposed a more moderate tariff rate, ranging between 10 percent and 20 percent, for its imports from the US. The upcoming meeting in Washington, D.C., will be crucial for finalizing these tariff rates and potentially averting the imposition of the higher 35 percent duty, which could significantly impact trade flows.
The United States stands as its single largest export destination. Last year alone, Bangladesh exported goods valued at over $8 billion to the US, while importing approximately $2 billion worth of American products.