United News of Bangladesh

Bangladesh expects a tariff deal with the United States which will be a win-win position for both the countries, Press Secretary Shafiqul Alam said on Tuesday following US President Donald Trump's letter to Chief Adviser Professor Muhammad Yunus. "Dhaka is looking forward to a tariff deal with Washington DC, which, we hope, will be a win-win one for both countries," he said, adding that another round of talks with the US is scheduled for July 9. Commerce Adviser Sk Bashir Uddin is in Washington DC, leading the country's trade talks with the United States. National Security Adviser Dr Khalilur Rahman is also part of the team. Alam said Bangladesh has received a letter from President Donald Trump on Monday declaring that the US would impose 35 percent tariffs on Bangladeshi goods from August 1. "The Bangladesh team has held several rounds of discussion with their American counterparts," said the Press Secretary, noting that Sk Bashir Uddin will lead the Bangladesh side during the discussion on July 9. President Trump in his letter said, "We look forward to working with you as your trading partner for many years to come. If you wish to open your heretofore closed trading markets to the United States, and eliminate your tariff, and non-tariff, policies and trade barriers, we will, perhaps, consider an adjustment to this letter." Trump said these tariffs may be modified, upward or downward, depending on their relationship with Bangladesh. "You will never be disappointed with the United States of America," President Trump wrote to Prof Yunus. Starting on August 1, 2025, the US President said they will charge Bangladesh a tariff of only 35% on any and all Bangladeshi products sent into the United States, separate from all sectoral tariffs. "Please understand that the 35% number is far less than what is needed to eliminate the trade deficit disparity we have with your country. As you are aware, there will be no tariff if Bangladesh, or companies within your country, decide to build or manufacture products within the United States and, in fact, we will do everything possible to get approvals quickly, professionally, and routinely - In other words, in a matter of weeks," Trump said. Challenges Ahead Talking to UNB, Mohiuddin Rubel, a leading exporter and former director of the BGMEA, raised concerns about its economic stability, especially in light of its current trade deficit as Bangladesh is home to a major ready-made garment industry. “That (if 35pc tariff imposed) could harm its economy, especially given its current trade deficit,” he said. In contrast, Vietnam, despite having a larger trade deficit, secured a lower 20% tariff, highlighting how Bangladesh’s existing trade barriers may have negatively influenced its position in global trade negotiations, Rubel said. The new tariffs pose a significant threat to employment in Bangladesh, as the United States remains its largest export destination, said the exporter. “The new tariffs raise worries about job losses in Bangladesh as the US is its main export market. Bangladesh needs to act quickly by engaging US importers to push for policy changes, resuming high-level trade talks, and highlighting the importance of its products,” Rubel told UNB, adding that strategic planning and partnerships are crucial to address the challenges. Best Trade Negotiator The White House in its fact sheets said President Trump is the best trade negotiator in history. “His strategy has focused on addressing systemic imbalances in our tariff rates that have tilted the playing field in favor of our trading partners for decades.” The White House said countries that are not serious about addressing the tariff and non-tariff trade barriers that impede American exports and harm American workers, farmers and businesses are facing the consequences. On July 7, President Trump signed an Executive Order determining that certain tariff rates, which were initially set to expire on July 9, will expire on August 1, 2025. President Trump also sent tariff letters to many countries informing them of their new reciprocal tariff rates, which will take effect on August 1. The US President may send more letters in the coming days and weeks. The countries he sent letters include: Bangladesh (35%), Japan (25%), Korea (25%), South Africa (30%), Kazakhstan (25%), Laos (40%), Malaysia (25%), Myanmar (40%), Tunisia (25%), Bosnia and Herzegovina (30%), Indonesia (32%), Serbia (35%), Cambodia (36%) and Thailand (36%).

Iran's foreign minister said early Tuesday that there is currently “no agreement” on a ceasefire between Iran and Israel. “As Iran has repeatedly stated, it was Israel that initiated this war, not Iran. At this moment, there is NO ‘agreement’ on any ceasefire or halt to military operations,” Abbas Araghchi posted on X. His comments followed US President Donald Trump’s announcement that Iran and Israel had reached a “complete and total” ceasefire amid escalating tensions in the region. “However, if the Israeli regime halts its unlawful aggression against the Iranian people by no later than 4 am Tehran time, we do not intend to continue our military response,” Araghchi added. He further said that Iran’s military operations to “punish Israel for its aggression” continued until the final moment, 4 am local time (0030 GMT). Trump announces Israel-Iran truce after attack on US base in Qatar “Alongside all Iranians, I express gratitude to our courageous Armed Forces, who stand ready to defend our beloved nation to their last drop of blood and who responded to every enemy attack until the very last minute,” he stated. On Monday, Iran launched a wave of missiles at the US military’s Al Udeid Air Base in Qatar, marking a major escalation after the US struck three Iranian nuclear sites on Sunday. The US strikes were part of the broader Israeli military offensive against Iran, which began on June 13 with Washington’s backing, triggering Tehran’s retaliatory attacks on Israel. Source: With inputs from Andolu 

US President Donald Trump on Tuesday declared that the U.S. knows the whereabouts of Iran’s Supreme Leader Ayatollah Ali Khamenei but has chosen not to target him “for now.” He called for Iran’s “UNCONDITIONAL SURRENDER” amid the intensifying Israel-Iran conflict, now entering its fifth day. “We know exactly where the so-called ‘Supreme Leader’ is hiding,” Trump posted on social media. “He’s an easy target, but we won’t take him out—at least not yet. But missile attacks on civilians and U.S. troops must stop. Our patience is running out.” Returning early from the G7 summit, Trump said he was seeking a “real end” to the conflict and total abandonment of Iran’s nuclear ambitions. Speaking aboard Air Force One, he criticized Iran’s leaders for not agreeing to a deal, saying he was “not in the mood to negotiate.” Despite U.S. intelligence maintaining that Iran isn’t actively building a nuclear bomb, Trump dismissed those assessments, insisting Tehran was close. He also rejected a proposed Israeli plan to assassinate Khamenei, though he appeared to be edging toward deeper American involvement as U.S. military assets reposition in the region. US intelligence says Iran isn’t building nuclear weapons, but Trump rejects their assessment Israel claims its strikes have devastated Iran’s air defenses and is seeking U.S. support—including bunker-busting bombs—to destroy key nuclear facilities like Fordo, which lies deep underground. While Trump has not ruled out diplomacy, he signaled a harder stance, calling for immediate evacuations in Tehran and warning that “IRAN CAN NOT HAVE A NUCLEAR WEAPON.” Defense Secretary Pete Hegseth appeared on Fox News to reaffirm that the U.S. remains “postured defensively” in the region, as Trump’s MAGA base grows divided over potential U.S. military escalation. Some Trump-aligned voices, such as Tucker Carlson and Rep. Marjorie Taylor Greene, have expressed concern, while allies like Sen. Lindsey Graham are urging a more aggressive approach. Source: With inputs from agency 

US President Donald Trump reportedly rejected an Israeli proposal to assassinate Iran’s Supreme Leader Ayatollah Ali Khamenei, according to multiple media outlets. Reuters, citing two unnamed US officials, reported that Israeli authorities recently informed the Trump administration of an opportunity to carry out the assassination, but Trump declined to approve the operation. Trump believes Israel-Iran may come to deal 'soon' Reuters quoted an unnamed Trump administration official as saying that officials were “not even talking about going after the political leadership” until such time as Iran had killed an American citizen. Major outlets including CNN, the Associated Press, CBS News, and NBC News have also confirmed the existence of the plan and Trump’s decision to block it. Source: Al Jazeera  

Israel has confirmed carrying out airstrikes on nuclear facilities in Iran as part of a military operation it has dubbed Operation Rising Lion, amid soaring regional tensions. According to the Israel Defense Forces (IDF), the strikes targeted multiple nuclear sites across Iran.  Explosions were reported in several parts of Tehran, with residents describing loud blasts and power disruptions in parts of the capital. Prime Minister Benjamin Netanyahu said the operation was a necessary response to what he described as an "imminent threat to Israel's very survival" posed by Iran’s nuclear ambitions.  The offensive marks one of the most direct and dramatic escalations between the two longtime adversaries. Israel has since declared a nationwide state of emergency, with authorities stating they expect retaliatory strikes "in the immediate future". Iranian state media reported that residential areas in Tehran were struck, with children among the casualties. These reports have not been independently verified. Death toll from Israeli attacks in Palestine exceeds 55, 000 In a separate claim, Iranian broadcasters said Major General Hossein Salami, the commander of the Islamic Revolutionary Guard Corps, was killed during the strikes.  No official confirmation has been issued by Iranian authorities. The United States has denied any role in the attack. Speaking at a press briefing, US Secretary of State Marco Rubio stressed that the US had “no involvement or assistance in the Israeli operation”. International responses have started to emerge, with Australia expressing deep concern.  "We are alarmed by the sharp escalation and call for restraint from all sides," a spokesperson for Australia’s Department of Foreign Affairs said. UK and alies sanction two far-right Israeli ministers over ‘Extremist Violence’ remarks The situation remains fluid as global powers monitor the fallout from the strikes and potential Iranian retaliation.  UN Secretary-General António Guterres has reportedly called for an emergency Security Council meeting. Source: With inputs from BBC 

US President Donald Trump has suggested there may soon be encouraging developments regarding the situation in Gaza, alongside progress in nuclear negotiations with Iran. “I think we could have some good news on the Iran front, likewise with Hamas on Gaza,” he told reporters before he boarded Air Force One in New Jersey. Israel's latest strikes in Gaza kill 38 people including children “We want to see if we can stop that, and Israel. We’ve been talking to them and we want to see if we can stop that whole situation,” he added. Source: Al Jazeera

US President Donald Trump has arrived in Riyadh, Saudi Arabia, marking the beginning of his first significant overseas visit since starting his second term in office. Air Force One touched down at 2:49 am. ET (9:49 a.m. local time), where Trump received a ceremonial welcome at the Royal Terminal. A royal purple carpet was laid out for his arrival, and he was greeted by Saudi Crown Prince Mohammed bin Salman. The two leaders participated in a traditional coffee ceremony inside the terminal before the president departed for his hotel. The visit has been marked by high-level pageantry, with Riyadh’s streets lined with American and Saudi flags along the route from the airport. In a display of diplomatic flair, Saudi F-15 fighter jets escorted Air Force One as it approached the city — a detail highlighted by Trump’s deputy chief of staff Dan Scavino and reporters traveling with the delegation. Trump visiting Gulf Arab states while crises flare in Gaza and Iran Trump's schedule for Tuesday includes a formal welcoming ceremony with the crown prince, a meeting of U.S. and Saudi delegations, a business lunch with corporate leaders, bilateral discussions, and a signing ceremony at the Royal Court. He is also set to speak at a U.S.-Saudi Investment Forum, tour the historic Dir’iyah and At-Turaif UNESCO World Heritage sites, and conclude the day with a state dinner hosted by Crown Prince Mohammed bin Salman. Source: With inputs from agency

US President Donald Trump declared a complete halt on all “reciprocal” tariffs that took effect at midnight, with the exception of those imposed on China. Trump announced that tariffs on China would rise from 104% to 125%, reports CNN. Meanwhile, Chief Adviser Muhammad Yunus has expressed his gratitude to President Trump for his decision. "Thank you, Mr. President, (@POTUS) for responding positively to our request for 90-day pause on tariffs. We will continue to work with your administration in support of your trade agenda," Chief Adviser's Press Secretary Shafiqul Alam said quoting Chief Adviser Prof Muhammad Yunus. In a post on Truth Social on Wednesday, Trump stated that he had “authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.” “Due to the lack of respect China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately,” Trump wrote on his social media. “At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable,” he added. The decision to raise tariffs on China followed Beijing's announcement of new retaliatory tariffs on the United States, set to take effect on Thursday. The Trump administration has specifically targeted China's trade practices, said the report. Treasury Secretary Scott Bessent praised Trump’s resolve, stating on Wednesday that Trump had “great courage to stay the course until this moment.” The administration has warned countries worldwide, “do not retaliate and you will be rewarded,” and expressed willingness to negotiate with any nation seeking to engage in talks, Bessent noted. Bessent emphasized that the move “signals that President Trump cares about trade and that we want to negotiate in good faith.” Both Bessent and Commerce Secretary Howard Lutnick were with Trump when he posted his message on Truth Social, Lutnick confirmed on a post on X,added the report. “Scott Bessent and I sat with the President while he wrote one of the most extraordinary Truth posts of his Presidency,” Lutnick wrote. “The world is ready to work with President Trump to fix global trade, and China has chosen the opposite direction.” Stocks surged following the announcement, with the Dow climbing 2,200 points, or 5.9%. The S&P 500 gained 6.5%, and the Nasdaq rose by more than 8%. The markets had been under pressure due to the potential for significantly higher tariffs, as outlined by Trump last week, the report also said. However, Trump did not indicate that he was pausing the 10% universal tariff on all trading partners, except for Canada and Mexico, which took effect over the weekend. As a result, countries that had reciprocal tariffs imposed on them would still face a 10% tariff, Bessent confirmed.

In an executive order, US President Donald Trump has imposed a 37% tariff on Bangladeshi products and others, sparking concerns among economists and apparel industry stakeholders. They fear this move will exert significant pressure on Bangladesh’s economy, urging the country to diversify its economic landscape and initiate dialogue with the US administration under the Trade and Investment Cooperation Framework Agreement (TICFA). Experts believe that a mutual understanding between the two nations could lead to a revision of the imposed tariff. Failure to act promptly may result in the migration of apparel orders to countries such as India, Turkey, Egypt and Honduras. Need for Export Diversification Former Dhaka University professor Dr MM Akash emphasised the necessity of diversifying Bangladesh’s export base to mitigate the impact of the tariff. “We need to tackle this by expanding our trade to multiple countries with a variety of products,” he said. Highlighting the country’s lack of preparation in this regard, Dr Akash argued for a strategic trade approach. “Previously, we discussed free trade and protectionist trade. Now, both strategies are becoming ineffective. We must adopt strategic trade policies,” he added. Efforts underway to address tariff issue with US: Press Secretary  According to him, Bangladesh must be selective—pursuing protectionist policies in some areas, engaging in free trade in others, and strengthening ties with China and India where necessary. “At times, we may capture Vietnam’s market, and at times, Vietnam may capture ours. We might even impose tariffs on American products. A multi-pronged strategy is essential,” he said. But, Bangladesh Institute of International and Strategic Studies (BIISS) Research Director and economist Dr Mahfuz Kabir presented a different view, saying that Bangladesh cannot swiftly redirect its export markets. “Eighty-five percent of our exports come from the apparel sector, which must remain intact. In the long term, we may consider diversification, but immediate alternatives are limited,” he said. Winners and Losers in the Trade War Referring to the tariff hike as a trade war, Dr Akash said, “This is a tariff war, and it is uncertain whether we will be the only losers—Trump himself could lose as well.” He explained that Trump’s policy aims to protect local industries and employment, but it also poses risks. “Affordable goods, particularly from China, will become expensive for American consumers, increasing their cost of living. Although their wages might rise, real income could decline,” he noted. Akash said the new tariff regime will affect not only China but also Bangladesh, Vietnam, and other developing countries. As a result, Bangladeshi export prices in the US will rise, potentially reducing demand and decreasing foreign currency earnings. How Much Will Bangladesh Suffer? Dr Akash believes the 37% tariff on Bangladeshi products will have a severe impact. “Seventy-six percent of our export revenue comes from the garment sector. If prices rise by 37%, significant repercussions are inevitable.” The extent of the damage depends on the distribution of Bangladeshi exports across different regions. Global reactions to US ‘Reciprocal’ tariffs remain cautious “A substantial portion of our apparel exports go to the US, so this will be a major blow,” he said. Dr Mahfuz Kabir added that the US currently accounts for 19% of Bangladesh’s total exports. “With one-fifth of our exports going there, a 37% tariff will have a considerable impact,” he said. India and Pakistan to Benefit Dr Kabir argued that the primary beneficiaries of this tariff hike will be India and Pakistan. “Many of Bangladesh’s orders will shift to these countries, which is deeply concerning.” The US has imposed tariffs of 26% on Indian and 29% on Pakistani products. As India’s export range closely resembles Bangladesh’s, it may gain a competitive advantage. Dr Kabir warned that American buyers might prioritise India and Pakistan over Bangladesh due to rising costs, while also exploring closer alternatives such as Honduras. “Even though Vietnam faces a 44% tariff—higher than Bangladesh—its trade agreement with the US might offer it some leverage,” he noted. “Sri Lanka faces a similar situation, but neither country is in a position to overtake Bangladesh in competition.” Nonetheless, new competitors such as Honduras, Egypt and Turkey are emerging, posing fresh challenges for Bangladesh’s apparel exports. Engaging with Trump Administration To mitigate the impact of the tariffs, Bangladesh must engage in discussions with the Trump administration, according to Dr Kabir. “We must leverage the TICFA agreement. While the tariff decision was made via executive order, complicating negotiations, a strategic approach is necessary.” TICFA mandates bilateral discussions in case of trade disputes. But, since this decision was taken at the presidential level, bypassing the US Trade Department, direct negotiations may prove challenging. “If Bangladesh’s National Board of Revenue (NBR) reviews tariffs on US imports, the Commerce Ministry can inform the US Trade Department. Meanwhile, the Foreign Ministry should attempt to engage directly with the White House,” he suggested. Dr Kabir believes that sending a strong message to the US about reviewing tariffs on American products could encourage the Trump administration to reconsider its stance. “If we assess our tariff structure on US imports, Trump might reciprocate. Since Bangladesh does not import substantial daily necessities from the US, reducing tariffs will require broader trade adjustments.” Concerns of Industries Mohammad Hatem, President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), expressed grave concerns over the potential repercussions for the apparel sector. Trump’s promised ‘reciprocal’ tariffs unleashed on dozens of countries; Bangladesh slapped with 37% “We initially thought that if Bangladesh remained exempt from US tariffs, we could capitalise on export opportunities. However, the 37% tariff has nullified that advantage,” he said. Asked why Bangladesh will be hit with a higher tariff than China, India and Pakistan, Hatem explained that the decision stems from retaliatory tariff policies. “US exports to Bangladesh face a 74% tariff. Bangladesh, therefore, faced a 50% retaliatory tariff hike, putting us in a precarious position,” he said. Hatem urged the government to initiate bilateral talks with the US as soon as possible. “Given Bangladesh’s heavy reliance on US-imported yarn for garment production, both nations have vested interests. If we reach an agreement, the US administration may reconsider the imposed tariff,” he said. The 37% tariff on Bangladeshi products presents a formidable challenge, particularly for the country’s apparel sector. While diversification and strategic trade policies could provide long-term solutions, immediate negotiations with the Trump administration appear to be the best course of action. The coming months will determine whether Bangladesh can successfully navigate this economic hurdle.

US President Donald Trump has criticised the United States Agency for International Development (USAID) for allegedly allocating funds to interfere in India's electoral process, questioning why American taxpayers' money was being sent to the country. Speaking at the Conservative Political Action Conference (CPAC) in Washington on Sunday, President Trump alleged that India already benefits from high tariffs on American goods and does not require financial assistance for its elections. "Eighteen million dollars for helping India with its elections. Why the hell? Why don’t we just go to old paper ballots and let them help us with our elections, right? Voter ID. Wouldn’t that be nice? We’re giving money to India for elections. They don’t need money," Trump remarked. The figure quoted by Trump could not be independently verified. A prior report from the Elon Musk-led Department of Government Efficiency (DOGE) suggested that $21 million had been allocated for "voter turnout" in India. "They take advantage of us pretty good. One of the highest tariffed nations in the world. We try and sell something, they have a 200 per cent tariff. And then we’re giving them a lot of money to help them with their election," he continued. India Responds to Trump's Allegations India's External Affairs Minister S Jaishankar addressed the concerns raised by Trump, stating that the government was looking into the matter. Trump says $29 million in USAID money went to firm 'with just 2 people' "Some information has been put out there by the Trump administration people, and obviously, that is concerning. I think, as a government, we’re looking into it. My sense is that the facts will come out. USAID was allowed here in good faith, to do good faith activities; now, suggestions are being laid out from America that there are activities which are in bad faith. It’s worrisome, and if there’s something to it, then the country should know who the people are involved in it," Jaishankar said. Meanwhile, the opposition Congress party has demanded a white paper on all foreign aid received by India from developmental agencies. Congress has also called for legal action against those propagating what it terms "baseless allegations" of foreign interference in Indian democracy. Congress spokesperson Pawan Khera countered Trump’s claim, stating, "More Indian news media outlets have fact-checked the claim by BJP and Modi government’s minister as untrue. Funds went to Bangladesh, not India; although India received USAID funds, it was not for increasing voter turnout." Allegations of Funding in Bangladesh In addition to his claims about India, Trump also alleged that an unnamed firm in Bangladesh had received $29 million in USAID funding. "Got USD 29 million. They got a cheque. Can you imagine? You have a little firm, you get 10,000 here, 10,000 there, and then we get 29 million from the United States government. There are two people working in that firm... I think they’re very happy, they’re very rich. They’ll be on the cover of a very good business magazine pretty soon for being great scammers," Trump alleged. Congress has urged Prime Minister Narendra Modi to personally address these claims and refute the allegations. The party has also criticised the ruling BJP, accusing it of exploiting Trump’s comments to advance conspiracy theories. Judge blocks Trump’s plan to place 2,200 USAID employees on paid leave "There is no record of a Consortium for Elections and Political Process Strengthening (CEPPS) programme matching the US government’s description in India. CEPPS did have a $21 million USAID contract, but it was for Bangladesh, not India," Khera stated. BJP Dismisses Congress’s Defence BJP leader Ajay Alok dismissed Congress’s statements as "baseless," asserting that the Modi government has significantly curtailed foreign aid flows. "We have already shown that the government got $2,119 million between 2004-14 and just $1.5 million between 2014-25. We are shutting down these things. The Indian government is now acting, the US government has issued a list of who has got the money from where... this is part of a deep state. The Bharat Jodo Yatra was also being funded from this money," Alok claimed. With both the Indian and Bangladeshi governments yet to issue a formal statement on the matter, the controversy is likely to continue, further complicating diplomatic relations between India and the United States ahead of key elections in both nations. Source: Agencies