Bangladesh and the United States have entered a second round of high-stakes negotiations in Washington amid growing tensions over the Trump administration’s impending tariff hike on Bangladeshi exports.

The ongoing talks, described as “cordial but complex,” aim to determine the trajectory of current and future bilateral trade relations, particularly in light of the proposed 35 percent increase in US tariffs on Bangladeshi goods—a move that would raise the total tariff burden to 50 percent.

The Chief Advisor’s Office (CAO) said in a statement on Friday that both sides exchanged views and reached consensus on several issues during the second day of the three-day discussions. However, some matters remain unresolved, prompting a third round of talks scheduled to begin at 9 am Washington time on Friday.

Commerce Advisor Sheikh Bashir Uddin, who is leading the Bangladeshi delegation, held a one-on-one meeting with US Trade Representative Ambassador Jamieson Greer on Thursday. The meeting also addressed broader trade and strategic issues and was held in a “cordial atmosphere,” according to officials.

During the talks, Bashir Uddin presented a detailed overview of Bangladesh’s economic outlook, stressing the country’s commitment to not only expanding exports but also increasing imports from the US—a process he said is already underway.

He also urged Washington to ensure fair treatment for Bangladeshi products and a level playing field, particularly in sectors like readymade garments, which account for the bulk of Bangladesh’s exports and for which the US remains the largest single market.

Greer, a senior US official with ministerial rank under the Trump administration, reportedly assured full cooperation and said avenues for continued dialogue remain open.

The Bangladeshi delegation includes Commerce Secretary Mahbubur Rahman and Additional Secretary Dr Nazneen Kawshar Chowdhury, while National Security Advisor Khalilur Rahman is participating virtually from Dhaka.

The renewed negotiations follow President Donald Trump’s April 2 announcement of steep tariffs on products from over 100 countries. Bangladesh was included in the list, facing a proposed 37 percent hike—later formalised as a 35 percent across-the-board increase—set to take effect on August 1.

Though the initial implementation date was pushed back to July 9 to allow for negotiations, Trump sent letters to 14 heads of state and government just two days before the deadline, reiterating that the tariffs would be enforced from August.

In his letter to Chief Advisor Professor Muhammad Yunus, Trump confirmed the 35 percent tariff hike but signalled openness to further negotiation.

Having failed to secure a breakthrough in the initial round, the Bangladeshi side has redoubled its diplomatic efforts, hoping to secure exemptions or reductions to soften the impact on its export-dependent economy.

Economists warn the proposed tariff regime would deal a serious blow to Bangladesh’s trade prospects, particularly in the garments sector, already under pressure from global demand shifts and supply chain disruptions.

The average US tariff on Bangladeshi goods currently stands at around 15 percent. A 50 percent tariff would significantly erode competitiveness, threatening jobs and export revenues at a time when the country is grappling with rising inflation, factory closures, and economic uncertainty.

The outcome of the talks will be closely watched by exporters, industry leaders, and policymakers on both sides, as the August 1 deadline approaches.