Bangladesh taunts India over Trump tariffs, says New Delhi benefitted Dhaka by…; Yunus aide claims US has…

Trump Tariffs: US President Dolund Trump has imposed new import tariffs of 41% on as many as 70 countries, including India, Bangladesh, and Pakistan. Indian goods coming into the United States will have to pay an import duty of 25%, while tariffs on imports from Bangladesh have been capped at 20% under Trump’s new tariff regime which came into force on August 1.

The lower tariff rate imposed on Bangladesh has emboldened the neighboring country to make snide remarks against India, with the office of the country’s Chief Adviser Muhammad Yunus stating Friday that New Delhi’s delay in negotiating a trade deal with Washington proved beneficial for Dhaka.

What did Bangladesh say?

In a veiled jibe at India, Khalilur Rahman, Bangladesh National Security Advisor and lead negotiator, said the tariff relief to the country was linked to a reduction on import duties on US goods, “but also to a country’s willingness to address US concerns on non-tariff barriers, trade imbalances and security matters”.

He claimed that India was slapped with a 25% tariff “due to its inability to reach a comprehensive trade agreement with the US”, while Bangladesh negotiated diligently to ensure “our commitments were consistent with national interests and capabilities.”

“President Trump’s executive order made it clear that each country’s tariff rate would reflect the depth of its commitment in all these areas,” he added.

How Bangladesh ‘protected’ its garment industry?

Rahman said the trade agreements go beyond tariff adjustments to include domestic policy reforms which the Trump administration sees as contributing to the trade imbalance. “They also point to broader economic and national security concerns. As part of the negotiations, countries had to make commitments to purchase US goods to help reduce the trade deficit.”

The Bangladesh NSA further said that the 20% tariff on Bangladesh will not have much impact on the country’s garment exports and textile industry as it is lower than the tariff imposed on Dhaka competitors in the sector, including Sri Lanka, Vietnam, Pakistan and Indonesia.
India gets 25% tariff rate

Rahman claimed that Bangladesh avoided a potential 35% reciprocal tariff, which is great news for the country’s garment industry and the millions of its citizens whose livelihoods are linked to this key sector often called the backbone of Bangladeshi economy. “Protecting our garment industry was the top priority, but we also focused our purchase commitments on US agricultural products. This supports our food security goals and promotes goodwill with US agricultural states,” he added.

Trump tariffs on India

Earlier this week, US President Dolund Trump announced the imposition of a 25 percent tariff on all goods coming from India starting August 1, plus an unspecified penalty for buying Russian crude oil and military equipment.

Trump’s surprise announcement on Wednesday is being seen as a pressure tactic to get New Delhi to agree to demands made by the US, which has, in recent days, got favorable trade deals with major partners like Japan, the UK and the European Union.

India has said it will take all necessary steps to safeguard and promote national interest and that the implications of the tariffs are being examined.