In a strategic push to avert a devastating tariff blow on its exports, the Bangladesh government has announced plans to import wheat, pulses, and liquefied natural gas (LNG) worth $1.5 billion from the United States over the next year. The move comes ahead of final negotiations with the United States Trade Representative (USTR) as Bangladesh scrambles to avoid a proposed 35% countervailing duty on its exports, set to take effect from August 1.Commerce Secretary Mahbubur Rahman already departed for Washington on July 28, confirmed that this initiative is part of a broader $3 billion import strategy involving both the public and private sectors. “We are promising to increase imports by $1.5 billion in the next one to one and a half years. 
The rest will be imported by the private sector,” he told the correspondent.Why It Matters: The US is one of Bangladesh’s key export destinations, particularly for garments. The imposition of a new retaliatory tariff-raising the current 15% to a staggering 50%-would severely hurt export competitiveness, costing Bangladesh billions in lost trade. By boosting imports from the US, Bangladesh hopes to reduce its trade deficit and persuade the US to reconsider the tariff hike.Private Sector Mobilizes to Support Government Strategy: In tandem with the government’s efforts, a delegation of private importers from major Bangladeshi conglomerates — including TK Group, Meghna Group, City Group, and the Bangladesh Textile Mills Association (BTMA) — is traveling to the US. Their mission: to sign procurement deals that could raise import volumes by another $1.5 to $2 billion.BTMA President Shawkat Aziz Russell is leading the textile sector’s efforts. “It is possible to increase cotton imports from the US to $2 billion if we get some assistance. This would significantly reduce the trade deficit,” he said.Trade Talks in Washington: The official Bangladesh delegation, led by the Commerce Secretary and including Commerce Advisor Sheikh Bashiruddin, National Security Advisor Khalilur Rahman, and WTO Cell DG Nazneen Kausar Chowdhury, is scheduled to hold high-level discussions with USTR officials in Washington.Bangladesh is advocating for fairer treatment, citing precedents. “Vietnam had a $123 billion trade deficit with the US, yet managed to reduce their tariff rate to 20 percent. Our deficit is only $6 billion and will shrink further with these imports,” Rahman argued.Trade Data Supports Bangladesh’s Case: Cotton imports from the US in FY 2023-24 stood at $361 million, out of total cotton imports worth $7.9 billion. Wheat imports from the US totaled $43.4 million, a fraction of the $1.76 billion imported overall.Soybean imports reached $339 million, representing nearly 37% of total imports in that category. To enhance government-to-government trade, Bangladesh has already signed an agreement to import 700,000 tonnes of wheat annually from the US and approved a purchase of 220,000 tonnes. Additionally, Bangladesh is exploring increased LNG imports and the purchase of 25 Boeing aircraft from the US.Challenges to Scaling Up Imports: While the intention is clear, execution faces hurdles:Cost Premium: US cotton costs $0.03–$0.04 more per pound than competitors like India or West Africa.Longer Transit Times: The geographic distance adds logistical costs. Higher Quality, Higher Price: US wheat is considered superior but costs $20–$30 more per ton than alternatives from Canada or India. To mitigate these, Shawkat Aziz Russell proposed a few measures: Use of central bonded warehouses to hold bulk US cotton for local resale. Increase the Export Development Fund (EDF) ceiling from $20 million to $30 million.Reduce interest rates on EDF loans to 1%.: Negotiate with the US to maintain the current 15% duty on garments made with US cotton.Industry Voices Support Move with Caution: Muhammad Mustafa Haider, director of TK Group and president of the Edible Oil Association, confirmed that a representative from his group would join the US delegation. 
“We will increase soybean and wheat imports if it protects our exports. But we’ll need support to cover higher costs,” he said.Taslim Shahriar of Meghna Group echoed similar sentiments. “We will try our best to increase imports from the United States in the interest of the country,” he noted.Haji Shafi Mahmud, president of the Bangladesh Pulse Traders Association, said that while smaller traders often source pulses from Canada, Australia, or India due to better pricing, large corporations like Meghna, City, and Bashundhara now dominate the market. “They import 30,000 tonnes of pulses collectively, and we’ve asked the Ministry of Commerce to work through these companies.”Looking Ahead: This aggressive $3 billion import push—half from the public sector, half from private firms—may prove pivotal in reshaping Bangladesh-US trade relations. If successful, it could avert a tariff crisis that threatens one of Bangladesh’s most critical economic lifelines: exports. Negotiators are hopeful that their case, supported by expanded trade commitments, improved G2G relations, and targeted lobbying, will persuade US officials to reconsider the harsh retaliatory measures and maintain the current trade balance.