In an effort to ease the impact of increased tariffs imposed on its exports to the United States, the Bangladesh government is taking strategic steps to reduce its trade deficit with Washington. Among these steps are significant purchases of wheat, LNG (liquefied natural gas), and proposals to procure commercial aircraft from the U.S.
As part of this initiative, Bangladesh yesterday approved the purchase of 220,000 metric tons of wheat from the United States, at a cost of BDT 817.57 crore, through the Government Procurement Committee led by Economic and Science & Technology Adviser Dr. Salehuddin Ahmed. The wheat will be purchased from Agrocorp International Pte Ltd, a representative of U.S. Wheat Associates, at a price of $302.75 per ton.
This move follows the recent signing of a Memorandum of Understanding (MoU) between the two countries, under which Bangladesh intends to import 700,000 tons of wheat annually from the U.S. This diversification effort comes as part of a broader strategy to reduce dependency on wheat imports from Russia and Ukraine, which currently supply over 60% of Bangladesh’s wheat demand.
U.S. Tariff Pressure and Trade Negotiations
Bangladesh faces a $6 billion trade deficit with the U.S., and in response to this imbalance, U.S. President Donald Trump announced a 35% tariff on Bangladeshi exports effective from 1 August. Since that announcement on 8 July, Bangladesh has engaged in two rounds of negotiations with U.S. officials and has now formally requested a third round, proposing a schedule for further discussion.
During these negotiations, U.S. officials urged Bangladesh to increase imports as a means to balance bilateral trade. Though fulfilling all U.S. conditions may not be feasible, Bangladesh is actively working to show goodwill by boosting purchases in key sectors such as energy and aviation.
Economic Adviser Dr. Salehuddin Ahmed told reporters, “The Commerce Adviser will visit the U.S. before 1 August. We’re hopeful the tariff will be relaxed to some extent because the trade deficit isn’t very large.”
LNG Imports and Aviation Deals
Bangladesh’s LNG demand is also being strategically aligned with trade talks. In January 2025, Bangladesh signed a Heads of Agreement with U.S.-based Excelerate Energy to import 5 million tons of LNG annually. While this agreement is not legally binding, it is a significant step toward a comprehensive energy deal that could contribute to trade balance improvements.
Additionally, discussions are underway to purchase aircraft for Biman Bangladesh Airlines, with U.S.-based Boeing being a prime candidate. While the proposal is still under consideration, it has gained momentum following the tariff decision by Washington.
No Lobbyists, Just Fast Diplomacy
Addressing calls for appointing lobbyists in Washington, Dr. Salehuddin clarified that there is no time for long-term lobbying in this situation. “We need quick action. The U.S. already has a positive view of Bangladesh. We’ve cleared dues to Chevron, Excelerate, and MetLife. The U.S. Chamber of Commerce even sent us a letter expressing appreciation,” he noted.
U.S. Wheat Prices and Global Comparison
While U.S. wheat prices are slightly higher due to greater protein content, Bangladesh sees value in the quality. According to World Bank data, the average price of U.S. wheat in 2024 was $268.7 per ton, while lower-protein varieties averaged $230.9 per ton.
In comparison, Bangladesh recently purchased wheat from a UAE supplier at $275 per ton, meaning the new U.S. deal comes with an additional cost of $27.75 per ton, but with potential trade and diplomatic benefits.
What’s Next?
The Ministry of Commerce has sent a 21-page position paper to the U.S., including detailed tariff schedules and outlining steps already taken by Bangladesh. A formal response from the U.S. is still pending, but officials are optimistic that an announcement could come within days.
Commerce Secretary Mahbubur Rahman stated, “We’ve documented our progress—wheat deals, LNG contracts, aircraft proposals—and formally requested a negotiation date. We hope the U.S. will respond soon.”
Meanwhile, a similar deal between the U.S. and Indonesia was announced on the White House website this week, raising expectations that Bangladesh may receive comparable attention.
Bangladesh is currently among a limited group of countries actively engaging the U.S. on tariff relief, and insiders believe the strategic approach of increased imports could open the door to a diplomatic breakthrough before the new tariffs take effect.
