The Bangladesh government is working to reduce its trade deficit with the United States in an effort to secure relief from additional tariffs imposed on its exports. As part of this initiative, the country has moved to purchase wheat, LNG, and aircraft from the U.S. On Wednesday (July 23), the Advisory Council Committee on Government Purchase approved the procurement of 220,000 tons of wheat from the United States. Additionally, an agreement has been signed to buy LNG, and a proposal has been made to purchase commercial aircraft.
Alongside these steps, Dhaka has requested Washington to schedule a third round of talks and has shared its stance on the tariff issue. However, the U.S. has not yet confirmed a date for the discussions.
Bangladesh currently has a trade deficit of around $6 billion with the United States. To address this imbalance, U.S. President Donald Trump announced on July 8 that an additional 35 percent tariff would be imposed on all Bangladeshi exports to the U.S. starting August 1. In response, Bangladesh began pursuing negotiations with the U.S. to reduce the tariff burden. Two rounds of discussions have already been held with U.S. officials.
During the previous meetings, U.S. representatives outlined several conditions related to trade obligations, including the need for Bangladesh to increase imports from the United States to help balance trade. Although it may not be feasible to meet all the requirements, experts believe that increasing imports of certain U.S. products can help reduce the trade gap. Moreover, before the upcoming third round of talks, Bangladesh is expected to present a list of measures it has already taken—such as the decision to buy wheat, LNG, and aircraft from the U.S.—to show its commitment.
Only about a week remains before the new U.S. tariffs take effect. When asked about Bangladesh’s preparation for negotiations, Finance Adviser Dr. Salehuddin Ahmed told reporters at the Secretariat yesterday (July 23), “The Trade Adviser will visit the U.S. before August 1. We hope the tariffs will be reduced to some extent, because our trade deficit is actually very small—about $6 billion.”
When asked regarding the country’s business leaders’ call to hire lobbyists, the Finance Adviser dismissed the idea, saying, “There’s no scope for hiring lobbyists in this situation. That’s for long-term negotiations. Here, everything needs to move quickly. Lobbyists wouldn’t even be able to get close to the offices involved, let alone negotiate.” He added that the U.S. already holds a positive view of Bangladesh, partly due to recent payments made to American companies such as Chevron, Excelerate Energy, and MetLife. “The U.S. Chamber of Commerce even sent me a letter expressing their support,” he said.
Wheat is the country’s second most consumed grain, with an annual demand of 7 to 7.5 million tons. The bulk of this demand is met through imports by the private sector. In 2023–24 fiscal year, Bangladesh imported 6.6 million tons of wheat. In the recently concluded FY 2024–25, around 6 million tons have been imported.
More than 60 percent of the imported wheat comes from Russia and Ukraine. Bangladesh also imports wheat from Canada, Argentina, Bulgaria, Romania, Brazil, and Australia. To reduce the trade deficit, a Memorandum of Understanding (MoU) was signed last Monday to import 700,000 tons of wheat annually from the United States.
Just two days after signing the MoU, the government on Wednesday decided to purchase 220,000 tons of wheat from the U.S. The total cost is estimated at over BDT 8.17 billion. The decision was made during a meeting of the Advisory Council Committee on Economic Affairs and the Advisory Council Committee on Government Purchase, chaired by Finance Adviser Dr. Salehuddin Ahmed at the Secretariat.
The wheat will be purchased from Agrocrop International Private Limited, the authorized representative of US Wheat Associates. The price has been set at $302.75 per ton. Earlier, in a meeting of the Advisory Council Committee on Government Purchases held on June 25, the government had decided to import 50,000 tons of wheat from UAE-based Messrs. Cereal Crops Trading LLC at $275 per ton. That means the wheat from the United States will cost an additional $27.75 per ton.
The price of American wheat is relatively higher due to its higher protein content. Bangladesh typically imports low-protein wheat, which is generally cheaper. According to the World Bank’s July Pink Sheet, U.S. wheat was priced at $268.7 per ton in 2024. In the first and second quarters of this year, the price stood at $258 and $242.2 per ton, respectively. Meanwhile, low-protein wheat from the U.S. averaged $230.9 per ton in 2024, with prices of $233.9 and $219.4 per ton in the first two quarters.
Following yesterday’s Advisory Council Committee meeting on government purchases, the Finance Adviser stated, “Approval has been given to import 220,000 tons of wheat from the United States. The reason is that we want to diversify our sourcing. There have been uncertainties with the Russian or Ukrainian supply blocks. We are now negotiating to increase imports from the U.S. Their wheat quality is good.”
When asked whether U.S. wheat is more expensive, he said, “Even though the price is a bit higher, we will benefit in other ways. This wheat has slightly higher protein. Not significantly, but a bit more.”
Every year, Bangladesh imports a significant amount of LNG to meet its energy needs. In addition to long-term contracts with Qatar and Oman, LNG is also procured from the spot market. In FY 2024–25, the country imported 5.8 million tons of LNG. Bangladesh occasionally imports spot LNG from the United States as well. In January this year, the government signed a Heads of Agreement (HoA) with U.S.-based Excelerate Energy to purchase up to 5 million tons of LNG annually. While not legally binding, an HoA is typically the first step toward a formal agreement. After the U.S. imposed tariffs, the government has been trying to increase LNG imports from the country as well in an effort to reduce the trade deficit.
There have been ongoing discussions for several years regarding the purchase of more aircraft for Biman Bangladesh Airlines. Both U.S. manufacturer Boeing and France’s Airbus have expressed interest. However, following the recent imposition of U.S. tariffs, the potential purchase of Boeing aircraft has gained importance. Bangladesh has already submitted a proposal to Boeing, though a final decision has yet to be made.
According to the Ministry of Commerce, Bangladesh has sent a 21-page position paper in response to a U.S. proposal. Attached to the document is a detailed tariff schedule, and a third round of negotiations has been requested in the accompanying letter. Officials hope that, after completing these steps, Bangladesh will be formally invited to the next stage of talks.
Commerce ministry officials say that only a limited number of countries have made meaningful progress in trade negotiations with the U.S. and Bangladesh stands out for its active engagement, especially on the issue of reciprocal tariffs. While the U.S. is expected to respond to Bangladesh, it may do so after coordinating with a few other countries. There are likely one or two additional countries seeking time.
So far, two rounds of negotiations have been held on the framework agreement. Following this, the U.S. submitted a country-specific proposal to boost trade. The new proposal expands beyond goods to include services. Bangladesh has already communicated the steps it has taken in this regard through a separate letter. On Tuesday (July 22), Commerce Adviser Sk Bashir Uddin also sent a separate letter outlining overall progress to the U.S. Trade Representative Ambassador Jamieson Greer.
When contacted that night for comments, Commerce Secretary Mahbubur Rahman told Bonik Barta, “So far, Bangladesh has made significant progress in trade. For example, we’ve signed agreements to purchase wheat and LNG, and we’ve submitted a proposal to buy aircraft. All of this has been communicated to the United States. We’ve also shared details, through an official letter, of what steps we’ve already taken to reduce the trade deficit. Additionally, we’ve requested a timeline for the next round of negotiations.”
Meanwhile, on July 22, the White House published a fact sheet titled “The United States and Indonesia Reach Historic Trade Deal” on its website. The document states that following a phased negotiation process, the two countries will sign an agreement. However, both sides made their final positions public yesterday.
Officials at the Bangladesh Ministry of Commerce believe that, following Bangladesh’s response, a similar announcement or decision might be made regarding Bangladesh. They expect the United States to respond within the next couple of days. When asked about this, Commerce Secretary Mahbubur Rahman told Bonik Barta last night, “We requested time for the next round of negotiations yesterday (July 22). They (the United States) haven’t responded yet.”