Trump Threatens Higher Tariffs If Bangladesh Retaliates

In a significant move, US President Donald Trump has informed Dr. Muhammad Yunus, the Chief Advisor of Bangladesh's interim government, of the decision to impose a 35% tariff on Bangladeshi goods entering the American market. This tariff is set to take effect on August 1, 2025.

In a letter sent to Dr. Yunus on Monday, July 7, Trump explicitly warned that if Bangladesh implements any retaliatory measures against these tariffs, the US could further increase the duties.

Details of Trump's Letter
The letter from President Trump to Dr. Muhammad Yunus outlined the US position on trade with Bangladesh. "Dear Dr. Yunus," Trump wrote, "it is a great honor for me to send you this letter. Our strong and promising trade relations, despite a significant trade deficit with your great country, have led the United States to agree to continue working with Bangladesh. However, future trade will only be more balanced and fair."

Trump invited Bangladesh to participate in the "extraordinary economy of the United States, the number one market in the world." He emphasized that discussions on the commercial relationship with Bangladesh have spanned many years, leading to the conclusion that the US "must move away from this long-term and highly persistent trade deficit caused by Bangladesh's tariffs and non-tariff policies and trade barriers."

Tariff Implementation and Rationale
The letter further stated: "Starting August 1, 2025, we will impose a 35% tariff on any and all Bangladeshi goods entering the United States. Goods sent to avoid higher tariffs will also be subject to those higher tariffs. Please understand that the 35% tariff is much less than what is needed to eliminate the disparity of our trade deficit with your country."

Trump also highlighted that there would be no tariffs if Bangladesh or Bangladeshi companies chose to manufacture products within the United States.

Warning Against Retaliation and Future Prospects
Issuing a stern warning, the US President wrote: "If, for any reason, you decide to increase tariffs on US goods, the number you wish to increase will be added to the 35% tariff we have set. Please understand that these tariffs are necessary to correct Bangladesh's long-standing tariffs, non-tariff policies, and trade barriers. These have caused this destabilizing trade deficit against the United States, which is a major threat to our economy and, indeed, our national security."

Concluding his letter, Trump expressed optimism for future trade relations: "We look forward to working with you as a trade partner for a long time to come. If you wish to open your previously closed trading markets in the United States and remove your country's tariffs, non-tariff policies, and trade barriers, we may consider an adjustment to this letter. These tariffs can be adjusted upwards or downwards depending on our relationship with your country. You will never be disappointed with the United States. Thank you for your attention to this matter."

Background
It is worth noting that on April 2, US President Donald Trump had previously imposed high reciprocal tariffs on various countries. At that time, a 37% tariff was levied on Bangladeshi products. Prior to that, the average tariff on Bangladeshi goods in the US was 15%.