35% US tariff 'unjustified', says finance advisor as Bangladesh seeks further talks

"Once a formal discussion is held with the USTR (United States trade representative), we’ll have a better understanding of the situation," he says

Finance Advisor Salehuddin Ahmed believes the imposition of a 35 percent supplementary tariff on Bangladeshi products by the US is not justified, especially when the trade deficit between the countries is comparatively low.

He indicated that the government will engage in further negotiations to resolve the issue.

The advisor made the remarks on Tuesday following reports that the Trump administration was reviewing and revising supplementary tariffs on imports from 14 countries, including Bangladesh. The revised rate for Bangladesh is 35 percent, down slightly from the previous rate of 37 percent imposed three months ago.

According to reports, Vietnam, a key competitor of Bangladesh in the garments sector, will be subject to a reduced 20 percent tariff under special conditions.

When asked about this, Salehuddin said: “It’s true that our trade deficit with the US is only about $5 billion, while Vietnam’s is $125 billion. Even so, the US has agreed to offer Vietnam some concessions. In that case, given our much smaller deficit, there is no justification for imposing such a high tariff on us. We will continue to negotiate.”

The advisor said that trade talks are ongoing between the two countries.

“Our trade advisor is currently in the US. There will be another meeting with them. Once a formal discussion is held with the USTR (United States trade representative), we’ll have a better understanding of the situation. Whatever the outcome of that meeting, we’ll take appropriate steps based on it.”

“The meeting looks likely to be somewhat positive. The [US] president has already sent a letter. Now one-to-one negotiations will follow.”

'GOOD NEWS DOESN'T GET COVERED'

After 35 months, Bangladesh has finally seen a significant drop in overall inflation, which stood at 8.48 percent in June, according to the latest Bureau of Statistics data. Food inflation fell further to 7.39 percent, though non-food inflation remains relatively high at 9.37 percent.

Commenting on the development, the advisor said: “Inflation was a challenge for us. Food inflation has now come down, and we hope this downward trend continues. Non-food inflation has declined slightly, but several factors, including fuel prices, play a role there.”

Despite the positive trend, the advisor criticised most media outlets for not giving the news due attention.

The advisor also said that proposals related to LNG purchases, school shelters, and fertiliser procurement were approved during Tuesday’s meeting of the Cabinet Committee on Economic Affairs and the Cabinet Committee on Government Purchase.