Bangladesh May See Reduction in US Reciprocal Tariffs

Bangladesh could receive a reduction on the current 20 percent reciprocal tariff imposed by the United States, according to Lutfey Siddiqi, Chief Adviser’s Special Envoy on International Affairs. Sector-specific concessions are also being considered following continued high-level engagements.

Siddiqi briefed journalists at the Foreign Service Academy on Tuesday after attending the World Economic Forum (WEF) Annual Meeting in Davos, Switzerland. He described recent exchanges with US officials as offering “cautious reassurance” that tariff improvements are under review.

He highlighted Bangladesh’s progress in reforms related to non-tariff barriers, ease of doing business, and port and customs efficiency. Siddiqi said the country has demonstrated rapid progress, including narrowing a trade deficit that once stood at around $6 billion. However, final decisions on tariff relief remain with the US president, making political attention at the highest level crucial.

A formal announcement on tariff relief is expected later this week or early next week, reflecting Bangladesh’s strengthened economic diplomacy.

Siddiqi also shared updates on his wider WEF engagements, including meetings with global leaders, ministers, and heads of international organisations, noting that Bangladesh strategically advanced its foreign policy and economic priorities on these platforms.

On labour reforms, he said Bangladesh is gaining international recognition from bodies such as the ILO, EU, and UK, for both the substance of reforms and the democratic process used in implementation.

Siddiqi added that PayPal has expressed interest in entering Bangladesh, but cautioned that the process will take time due to the company’s standard procedures for market entry. Discussions with PayPal have been ongoing for years, and a senior team visited Bangladesh in December to hold talks with local entrepreneurs, Bangladesh Bank officials, and ICT sector representatives.