Thursday, 10 July, 2025
Finance Adviser Optimistic Ahead of Key Tariff Talks with USTR
Finance Adviser Dr Salehuddin Ahmed has expressed strong optimism about securing a favourable outcome during the one-on-one negotiations with the United States Trade Representative (USTR), scheduled to take place in the United States today (8 July), corresponding to the early hours of 9 July in Bangladesh.
“We expect to gain a clearer understanding of future developments regarding the tariff issue after the meeting,” Dr Salehuddin said on Tuesday while responding to questions from journalists following two separate meetings of the Advisers’ Council Committee on Economic Affairs and the Advisers’ Council Committee on Government Purchase, held at the Bangladesh Secretariat.
Dr Salehuddin informed reporters that although US President Donald J. Trump has sent a letter directly to the Chief Adviser concerning the tariff issue, the Bangladesh delegation will negotiate directly with the USTR. “Only after that meeting will we be able to grasp the matter in detail,” he said.
He noted that similar letters have been sent to 14 countries, including Bangladesh. “The final tariff rate will be determined through one-on-one negotiations with the USTR. That is why our meeting with them is so crucial—the rate has not yet been finalised.”
When asked about President Trump’s plan to impose a 35 percent tariff on Bangladeshi goods, the Finance Adviser said the Bangladesh delegation, led by the Commerce Adviser, is already in the United States, and the Commerce Secretary is also en route.
In response to a query, he stated, “We are definitely hopeful of a better outcome from the meeting. Regardless of the result, we will chart our future course of action accordingly.”
He added that the previous meeting between Bangladeshi and US representatives had been constructive and positive.
Although President Trump has directly communicated with the Chief Adviser, Dr Salehuddin reiterated that the final decision on tariffs would be shaped through formal negotiations.
In response to another question, Dr Salehuddin acknowledged that while the US had agreed to reduce tariffs on Vietnamese goods by 26 percent, Bangladesh's trade deficit with the US is significantly smaller—around USD 5 billion—compared to Vietnam’s USD 125 billion.
“Despite the smaller trade imbalance, we are doing our utmost to negotiate better terms,” he said, adding that similar letters have been sent to 14 countries. “However, we will continue to pursue further negotiations.”
Turning to domestic matters, Dr Salehuddin reported that revenue collection in the 2024–25 fiscal year was “moderate” and did not show any significant shortfall.
For the current fiscal year, he said the government is prioritising systemic reforms to boost revenue collection, in consultation with the business community, in order to reduce leakage and inefficiency.
“There is significant untapped potential in revenue generation, but we often fall short in fully realising it,” he remarked.
On the issue of inflation, Dr Salehuddin noted encouraging developments: “The good news is that food inflation fell significantly last month. Although inflation remains a major challenge, our efforts are showing results.”
He added that non-food inflation is also on a downward trend, given the broad scope of affected sectors.
The Finance Adviser also said that Tuesday’s meetings discussed key national priorities, including the import of liquefied natural gas (LNG), construction of school shelters in Gaibandha, and procurement of fertilisers.
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Finance Adviser Optimistic Ahead of Key Tariff Talks with USTR
Finance Adviser Dr Salehuddin Ahmed has expressed strong optimism about securing a favourable outcome during the one-on-one negotiations with the United States Trade Representative (USTR), scheduled to take place in the United States today (8 July), corresponding to the early hours of 9 July in Bangladesh.
“We expect to gain a clearer understanding of future developments regarding the tariff issue after the meeting,” Dr Salehuddin said on Tuesday while responding to questions from journalists following two separate meetings of the Advisers’ Council Committee on Economic Affairs and the Advisers’ Council Committee on Government Purchase, held at the Bangladesh Secretariat.
Dr Salehuddin informed reporters that although US President Donald J. Trump has sent a letter directly to the Chief Adviser concerning the tariff issue, the Bangladesh delegation will negotiate directly with the USTR. “Only after that meeting will we be able to grasp the matter in detail,” he said.
He noted that similar letters have been sent to 14 countries, including Bangladesh. “The final tariff rate will be determined through one-on-one negotiations with the USTR. That is why our meeting with them is so crucial—the rate has not yet been finalised.”
When asked about President Trump’s plan to impose a 35 percent tariff on Bangladeshi goods, the Finance Adviser said the Bangladesh delegation, led by the Commerce Adviser, is already in the United States, and the Commerce Secretary is also en route.
In response to a query, he stated, “We are definitely hopeful of a better outcome from the meeting. Regardless of the result, we will chart our future course of action accordingly.”
He added that the previous meeting between Bangladeshi and US representatives had been constructive and positive.
Although President Trump has directly communicated with the Chief Adviser, Dr Salehuddin reiterated that the final decision on tariffs would be shaped through formal negotiations.
In response to another question, Dr Salehuddin acknowledged that while the US had agreed to reduce tariffs on Vietnamese goods by 26 percent, Bangladesh's trade deficit with the US is significantly smaller—around USD 5 billion—compared to Vietnam’s USD 125 billion.
“Despite the smaller trade imbalance, we are doing our utmost to negotiate better terms,” he said, adding that similar letters have been sent to 14 countries. “However, we will continue to pursue further negotiations.”
Turning to domestic matters, Dr Salehuddin reported that revenue collection in the 2024–25 fiscal year was “moderate” and did not show any significant shortfall.
For the current fiscal year, he said the government is prioritising systemic reforms to boost revenue collection, in consultation with the business community, in order to reduce leakage and inefficiency.
“There is significant untapped potential in revenue generation, but we often fall short in fully realising it,” he remarked.
On the issue of inflation, Dr Salehuddin noted encouraging developments: “The good news is that food inflation fell significantly last month. Although inflation remains a major challenge, our efforts are showing results.”
He added that non-food inflation is also on a downward trend, given the broad scope of affected sectors.
The Finance Adviser also said that Tuesday’s meetings discussed key national priorities, including the import of liquefied natural gas (LNG), construction of school shelters in Gaibandha, and procurement of fertilisers.
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