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US views ties with Dhaka via trade, strategic lens: Kugelman
South Asia analyst Michael Kugelman has said the United States increasingly views its relationship with Bangladesh through the lens of trade and strategic competition, especially amid Washington’s efforts to counter China in the Indo-Pacific region.
Writing in Foreign Policy's South Asia Brief, Kugelman noted that the Trump administration has significantly reduced foreign aid and shown limited interest in promoting democracy or nation-building in Bangladesh.
His comments come following a high-level phone call on Monday between Bangladesh’s Chief Adviser Prof Muhammad Yunus and US Secretary of State Marco Rubio—described as one of the most significant diplomatic engagements since Trump’s return to office.
“The readouts of the Yunus-Rubio call from both governments suggest that Washington’s focus is now on trade and great-power competition,” Kugelman said. He pointed out that both leaders discussed strengthening economic ties and partnering on Indo-Pacific security, with the latter aligning with US efforts to push back against growing Chinese influence.
However, Kugelman warned that both objectives pose challenges for Dhaka. Bangladesh currently faces a steep 37% US tariff under President Trump’s new "Reciprocal Tariffs" policy unless a bilateral trade deal is secured. At the same time, Dhaka has historically maintained a nonaligned foreign policy, seeking to balance relations with major powers rather than aligning with one side.
Amid these developments, Bangladesh is actively working to address the trade issue. In April, Prof Yunus convened an emergency meeting with senior advisers and economic experts to formulate a response to the tariff policy. Finance officials have since introduced a revised tariff and supplementary duty structure with the US deal in mind.
The Yunus-Rubio call also underscored both countries’ commitment to enhancing regional stability. US State Department spokesperson Tammy Bruce confirmed that both sides “affirmed their shared commitment to deepening economic ties and enhancing security throughout the Indo-Pacific.”
A follow-up meeting on the tariff issue is scheduled to take place in Washington on July 8, with hopes that ongoing discussions will help ease trade tensions and strengthen bilateral cooperation.