United News of Bangladesh

President Donald Trump on Saturday called on NATO countries to stop buying Russian oil and warned of imposing tariffs of 50% to 100% on China over its continued purchases of Russian petroleum. In a post on his social media platform, Trump said NATO’s commitment to the Ukraine war has been “far less than 100%,” describing the purchase of Russian oil by some alliance members as “shocking.” Addressing NATO members, he wrote: “It greatly weakens your negotiating position and bargaining power over Russia.” Since 2023, Turkey has been the third-largest buyer of Russian oil, after China and India, according to the Centre for Research on Energy and Clean Air. Other NATO members, including Hungary and Slovakia, also continue to import Russian oil. It remains unclear whether Trump intends to confront Turkish President Recep Tayyip Erdogan or Hungarian Prime Minister Viktor Orbán directly. Trump’s comments came after multiple Russian drones entered Polish airspace on Wednesday, a NATO ally. Poland shot down the drones, but Trump downplayed the incursion, suggesting it “could have been a mistake.” U.S. Secretary of State Marco Rubio, however, called the drone incident “unacceptable and dangerous,” though he said it was still unclear whether Russia deliberately targeted Poland. Trump calls 50% India tariffs a big deal, says it caused a rift with India While Trump has repeatedly pledged to end the war swiftly, critics say he has avoided pressuring Russian President Vladimir Putin. His recent meeting with Putin in Alaska produced little progress toward peace. Meanwhile, Congress is pressing him to support a bill toughening sanctions against Moscow. The U.S. and its allies are moving to show firmer resolve. At an emergency U.N. Security Council meeting on Friday, acting U.S. Ambassador Dorothy Shea reaffirmed that Washington “will defend every inch of NATO territory,” calling the drone incursion “a sign of immense disrespect” for U.S.-led peace efforts. Britain on Friday also banned 70 vessels linked to Russian oil trade and sanctioned 30 individuals and companies, including Chinese and Turkish businesses accused of supplying Russia with weapons components. Trump argued that a NATO-wide ban on Russian oil, combined with heavy tariffs on China, would be a decisive step. “China has a strong grip over Russia, and powerful tariffs will break that grip,” he wrote, adding that tariffs could be withdrawn once the war ends. The U.S. president has already imposed a 25% import tax on Indian goods tied to Russian energy purchases, raising the overall tariff to 50%. Still, Trump has indicated a willingness to negotiate with Indian Prime Minister Narendra Modi. Tensions with China remain high. Earlier this year, Trump’s 145% tariffs on Chinese goods prompted Beijing to retaliate with 125% tariffs on U.S. exports, effectively freezing trade between the world’s two largest economies. Subsequent negotiations lowered U.S. tariffs to 30% and China’s to 10%. In his latest post, Trump blamed the war on his predecessor Joe Biden and Ukrainian President Volodymyr Zelenskyy, while notably excluding Putin. His remarks followed a call with Group of Seven finance ministers on Friday, during which U.S. officials urged their counterparts to cut off revenues funding Russia’s war effort.

Bangladesh is awaiting a response from the United States regarding a letter it sent requesting a reduction in the recently imposed tariff on Bangladeshi products, Commerce Adviser Sk Bashir Uddin said on Thursday.  “We sent a letter to the US Commerce Secretary the day before yesterday outlining our position. We are now waiting for a reply—and an invitation. Once we receive both, InshaAllah, we will proceed with our negotiation team,” he told reporters responding to a question over the issue at the Secretariat. An online meeting between the Bangladesh government and the United States Department of Commerce is scheduled for Friday (July 25), he said. Bangladesh may get reduced tariffs on exports to USA: Finance Adviser Regarding the looming August 1 deadline for the new tariff to take effect, he said, “This issue is important not only for us but also for the United States. Our efforts are  going on with due dynamism. We have clearly presented our position and are awaiting a formal response. As soon as we receive the invitation, we’ll go there.” Asked about the government’s expectations, Bashir Uddin said they are hopeful and doing what is needed to be done for a positive outcome. About the demand from business leaders to appoint a lobbyist in the USA, the adviser said the government has not appointed any lobbyist. He added that many of the necessary policy adjustments involve complex inter-ministerial legal processes.  “Only we understand what needs to change in our systems. A lobbyist may not be equipped to grasp or handle that. We've been working day and night for the last 15 days. Almost every relevant ministry is involved. We’ve conveyed our position and hope to proceed upon receiving the invitation," he said.  Trump announces trade deal with Japan, reduces tariff to 15% “Once the online meeting is held, things will move forward. The fact that we’ve been offered an online meeting based on our letter shows that the process is active,” he said, responding to another question. Despite two rounds of discussions on the issue there has been no breakthrough yet. On July 8, US President Donald Trump informed Chief Adviser Professor Muhammad Yunus in a letter that the new 35% tariff on Bangladeshi products would take effect from August 1.  

Despite support from both the Biden and Trump administrations, U.S. manufacturing remains stuck in a prolonged slump. Ex-President Joe Biden’s administration rolled out subsidies for chipmakers and clean energy firms, spurring a surge in factory construction from 2021 to 2024. Meanwhile, President Donald Trump imposed high tariffs on foreign goods to protect American manufacturers and encourage domestic production. Still, factory jobs are declining. The U.S. Labor Department reported a loss of 7,000 manufacturing jobs in June, the second monthly drop in a row. Manufacturing employment is expected to fall for the third straight year. “Manufacturing production will continue to flatline,” said Mark Zandi, chief economist at Moody’s Analytics. “If production is flat, that suggests manufacturing employment will continue to slide.” Trump plans to hike tariffs on Canadian goods to 35% Industry insiders echo concerns. “The past three years have been a real slog for manufacturing,” said Eric Hagopian, CEO of Pilot Precision Products. Trump’s tariffs offer some relief for U.S. firms by making imported goods more expensive. “When you throw the tariff on, it gets us closer,” said Chris Zuzick of Waukesha Metal Products. But tariffs also raise the cost of imported materials used by American factories, like steel and aluminum, reducing global competitiveness. Frequent changes to tariff policies have added to industry uncertainty. “Customers do not want to make commitments in the wake of massive tariff uncertainty,” one company said in a recent ISM survey. “Everyone is kind of just waiting for the new normal,” Zuzick added.

Treasury Secretary Scott Bessent admitted on Sunday that Walmart—the nation’s largest retailer—might pass some of the costs from President Donald Trump’s tariffs on to consumers by raising prices. Bessent’s comments followed a conversation with Walmart’s CEO, which came just one day after Trump warned the company against increasing prices and pledged to closely monitor its response to the tariffs. Trump warns Walmart: Don’t raise prices due to my tariffs but do eat the costs from those taxes Amid ongoing skepticism about Trump’s handling of the economy, Bessent dismissed inflation concerns, defended Trump’s unpredictability as a deliberate strategy in trade negotiations, and downplayed the U.S. credit downgrade issued by Moody’s Ratings on Friday. However, despite Trump’s insistence that Walmart and China would fully absorb the impact of the tariffs, the retailer seems unwilling to shoulder the full financial burden on its own. Bessent said he spoke Saturday with Walmart CEO Doug McMillon, stressing in two news show interviews that what he thought really mattered for Walmart customers was the decline in gasoline prices. Gas is averaging roughly $3.18 a gallon, down from a year ago but also higher over the past week, according to AAA. “Walmart will be absorbing some of the tariffs, some may get passed on to consumers,” Bessent said on CNN. “Overall, I would expect inflation to remain in line. But I don’t blame consumers for being skittish after what happened to them for years under Biden,” a reference to inflation hitting a four-decade high in June 2022 under then President Joe Biden as the recovery from the pandemic, government spending and the Russian invasion of Ukraine pushed up costs. Walmart did not comment on Bessent’s description of his conversation with McMillon. In a social media post on Saturday morning, Trump said Walmart should not charge its customers more money to offset the new tariff costs. “I’ll be watching, and so will your customers!!!” he posted. Bessent said Walmart on its earnings call on Thursday had been obligated under federal regulations “to give the worst-case scenario so that they’re not sued,” suggesting in an NBC interview that the price increases would not be severe in his view. But Walmart executives said last week that higher prices began to appear on their shelves in late April and accelerated this month. “We’re wired to keep prices low, but there’s a limit to what we can bear, or any retailer for that matter,” Chief Financial Officer John David Rainey told The Associated Press on Thursday. Share markets slump again, indices fall in Dhaka and Chattogram Bessent maintained that the ratings downgrade was a “lagging indicator” as the financial markets had already priced in the costs of a total federal debt of roughly $36 trillion. Still, the tax plan being pushed by Trump would add more roughly $3.3 trillion to deficits over the next decade, including a $600 billion increase in 2027 alone, according to the Committee for a Responsible Federal Budget. The treasury secretary maintained that deficits would not be a problem because the economy would grow faster than the debt accumulation, reducing its increase as a size of the overall economy. Most independent analysts are skeptical of the administration’s claims that it can achieve 3% average growth as Trump’s 2018 tax cuts failed to do so. Those tax cuts from Trump’s first term did boost economic growth before the pandemic, but they also raised the budget deficit relative to previous estimates by the Congressional Budget Office. On tariffs, the Trump administration is still trying to determine rates with roughly 40 major trading partners before a July deadline. It’s also in the early stages of a 90-day negotiation with China, after agreed a week ago to reset tariffs on that country from 145% to 30% so that talks can proceed. Bessent said any worries about tariffs by small business owners most likely reflected the higher rate previously being charged on China. Still, the uncertainty has been a major drag for consumers and businesses trying to make spending plans in the weeks, months and years ahead. “Strategic uncertainty is a negotiating tactic,” Bessent said. “So, if we were to give too much certainty to the other countries, then they would play us in the negotiations.” Bessent appeared on NBC’s “Meet the Press” and CNN’s “State of the Union.”          

While U.S. President Donald Trump has talked of victory after reaching a weekend deal with China to reduce the sky-high tariffs levied on each other’s goods, businesses in China are reacting to the temporary deal with caution. The U.S. and China have cut the tariffs levied on each other in April, with the U.S. cutting the 145% tax Trump imposed last month to 30%. China agreed to lower its tariff rate on U.S. goods to 10% from 125%. The lower tariff rates came into effect on Wednesday. U.S. Treasury Secretary Scott Bessent, announcing the reduction in tariff rates this weekend in Geneva, had said, “We do want trade.” While the markets have responded to the agreement with gusto, rebounding to the levels before Trump’s tariffs, business owners remain wary. Businesses like one kitchen utensil factory in southern Guangdong province were eager to get back to work. The business said they put at least four orders from their American clients back into production on Tuesday after the tariff pause was announced. American Eagle shares slide after pulling 2025 outlook, $75m inventory write-down “We thought the negotiation would bring the tariffs down a bit, but didn’t expect it would be so much,” said Margaret Zhuang, a salesperson for the utensil factory in Guangdong province, one of China’s manufacturing hubs. Kahlee Yu, sales manager of Yangjiang Hongnan Industry and Trade Company, which also manufactures kitchen utensils, said he was reaching out to American customers again. “We’re a little bit optimistic about the trade deal between the two sides. But it is still possible the tariff policies will change again, resulting in no orders from our American clients,” he said. However happy they were in the moment, the damage from tariffs announced in April has already been done, Zhuang added, as they are seeing fewer orders. Currently, she has orders for products up until June. Earlier this year, before Trump’s trade war began, they had orders for production extending to August. The uncertainty also means companies are less willing to make new investments. Kelvin Liao, sales director at Action Composites, a manufacturer of carbon fiber auto parts in Dongguan, a major city in Guangdong, said he was originally planning to buy a piece of land to build a new factory, but opted instead to rent because of the tariff situation. “It is good to reach a trade deal between the two countries. But people have already lost confidence in Trump, and we will take a wait-and-see attitude,” he said. “We believe the signing a trade deal is just a pause and the ultimate goal of the US is to curb China’s development.” Tariffs also remain in place for some industries, which are not part of the general deal. Hong Kong businessman Danny Lau, who owns an aluminum-coating factory, said his company still faces about a 75% tariff from tariffs levied at different points since 2018 by the U.S. Still he welcomed the news from the weekend, saying he would reach out to existing American customers to gauge their views.    

In a post on his Truth Social platform Sunday night, Trump announced that he had directed the Department of Commerce and the U.S. Trade Representative to impose a 100% tariff on all movies produced outside the United States. “The American film industry is dying rapidly,” Trump claimed, accusing other countries of luring filmmakers with generous incentives. He argued that this international competition poses a national security threat, calling it “messaging and propaganda” backed by foreign governments. However, how such a tariff would be implemented remains unclear. Many film productions, including major blockbusters like the upcoming Mission: Impossible – The Final Reckoning, are typically shot across multiple countries, including the U.S. Incentive programs for years have influenced where movies are shot, increasingly driving film production out of California and to other states and countries with favorable tax incentives, like Canada and the United Kingdom. Yet tariffs are designed to lead consumers toward American products. And in movie theaters, American-produced movies overwhelming dominate the domestic marketplace. China has ramped up its domestic movie production, culminating in the animated blockbuster “Ne Zha 2” grossing more than $2 billion this year. But even then, its sales came almost entirely from mainland China. In North America, in earned just $20.9 million. The Motion Picture Association didn’t immediately respond to messages Sunday evening. The MPA’s data shows how much Hollywood exports have dominated cinemas. According to the MPA, the American movies produced $22.6 billion in exports and $15.3 billion in trade surplus in 2023. Businesses, experts call for business-friendly policies in upcoming budget Trump has made good on the “tariff man” label he gave himself years ago, slapping new taxes on goods made in countries around the globe. That includes a 145% tariff on Chinese goods and a 10% baseline tariff on goods from other countries, with even higher levies threatened. By unilaterally imposing tariffs, Trump has exerted extraordinary influence over the flow of commerce, creating political risks and pulling the market in different directions. There are tariffs on autos, steel and aluminum, with more imports, including pharmaceutical drugs, set to be subject to new tariffs in the weeks ahead. Trump has long voiced concern about movie production moving overseas. Shortly before he took office, he announced that he had tapped actors Mel Gibson, Jon Voight and Sylvester Stallone to serve as “special ambassadors” to Hollywood to bring it “BACK—BIGGER, BETTER, AND STRONGER THAN EVER BEFORE!” U.S. film and television production has been hampered in recent years, with setbacks from the COVID-19 pandemic, the Hollywood guild strikes of 2023 and the recent wildfires in the Los Angeles area. Overall production in the U.S. was down 26% last year compared with 2021, according to data from ProdPro, which tracks production. The group’s annual survey of executives, which asked about preferred filming locations, found no location in the U.S. made the top five, according to the Hollywood Reporter. Toronto, the U.K., Vancouver, Central Europe and Australia came out on top, with California placing sixth, Georgia seventh, New Jersey eighth and New York ninth. The problem is especially acute in California. In the greater Los Angeles area, production last year was down 5.6% from 2023 according to FilmLA, second only to 2020, during the peak of the pandemic. Last, October, Gov. Gavin Newsom proposed expanding California’s Film & Television Tax Credit program to $750 million annually, up from $330 million.    

A group of 12 U.S. states has filed a lawsuit challenging President Donald Trump's aggressive tariff policy, arguing that the administration overstepped its legal authority and bypassed Congress. Led by Arizona Attorney General Kris Mayes, the lawsuit criticizes the tariffs as both harmful to the economy and unconstitutional. "President Trump's insane tariff scheme is not only economically reckless — it is illegal," Mayes said in a statement. The states involved include Democratic-led Arizona, Minnesota, New York, Oregon, and others. California, though not part of this coalition, launched its own legal challenge just a week earlier. Since returning to office, Trump has disrupted global trade markets by announcing sweeping new tariffs as part of his so-called "Liberation Day" policy shift. The U.S. has slapped an additional 145% import tax on Chinese goods, prompting China to retaliate with a 125% tariff on American exports. Trump insists he's negotiating a "fair deal" with Beijing, but tensions remain high. Trump's Social Media ‘Buy’ tip pays off as markets rally following tariff delay In addition to the China-focused tariffs, the White House has implemented a 10% levy on imports from other trading partners, with threats of even more aggressive measures looming. At the heart of the legal challenge is the 1977 law Trump invoked to justify the tariffs, which the states argue does not grant the president the authority to impose sweeping trade restrictions unilaterally. The suit asserts that Trump's actions sidestep Congress and destabilize the economy. "The President cannot declare an emergency on a whim and levy massive tariffs at will," the lawsuit contends. "This undermines the constitutional balance of power and injects uncertainty into the global market." Global shares jump following historic gains on Wall St after Trump paused most of his tariffs Trump maintains that his protectionist approach is aimed at revitalizing U.S. manufacturing, but critics argue the costs fall on American consumers and businesses. "Tariffs are taxes, plain and simple — and Arizona families will be the ones footing the bill," Mayes said. Meanwhile, political fallout continues. According to The New York Times, Trump’s approval rating has dropped to 44%, just three months into his second term. Democratic leaders have pounced on the numbers, blaming the administration’s economic policies for rising costs and market instability. California Governor Gavin Newsom last week blasted the tariff strategy, calling it “the worst own-goal in the history of this country.”    

In a step towards global trade compliance, the National Board of Revenue (NBR) has undertaken a comprehensive review of Bangladesh's tariff regime, identifying 60 tariff lines where current customs duties and associated charges surpass the bound rates established in the World Trade Organization (WTO) agreements. As part of its initial measures, customs duties on 6 items have been reduced, signaling Bangladesh's commitment to aligning its trade practices with international standards. The initiative, detailed in an official document, sets forth a plan to gradually adjust these rates to fall within the WTO-agreed bound tariffs by 2026. Bound tariffs represent the maximum most-favored nation (MFN) tariff rate a country commits to at the WTO, serving as a ceiling that applied tariffs cannot exceed. This regulatory framework ensures that trade policies remain predictable and stable, providing security for traders and investors. NBR’s three-pronged strategy to boost revenue collection Countries typically negotiate bound tariffs during their accession to the WTO or through subsequent trade negotiations, setting these rates higher than their applied tariffs to retain policy flexibility. However, exceeding these bound rates without proper adjustments can lead to international disputes and demands for compensation, emphasizing the importance of adherence. The recalibration effort by Bangladesh reflects a broader trend among WTO members, where developed, developing, and transitioning economies have significantly increased the proportion of imports with bound tariff rates, enhancing global market stability. Additionally, the government has resolved to eliminate the minimum import price requirement, already removing it from 55 items with a strategic plan to phase it out entirely from the remaining 130 products by 2026. This move aims to simplify the import process and foster a more competitive market environment. The document outlines a cautious approach to tariff reduction, ensuring that local industries are not adversely affected and that revenue mobilization remains robust. The NBR's strategy involves a careful balancing act, prioritizing the protection of domestic sectors while advancing the country's export competitiveness. NBR collects nearly Tk 2 lakh crore in 7 months, growth over 15% This progressive adjustment of customs duties and the abolition of the minimum import price underscore Bangladesh's efforts to integrate more seamlessly into the global trading system, promoting economic growth and development in alignment with WTO commitments.

Electricity tariff was raised further in Bangladesh at both retail level with effect from Wednesday (March 1). The Power Division — through administrative order in a gazette notification — raised the tariff. “Power tariff was raised by 5 percent”, power secretary Habibur Rahman told UNB. This has been the third time in a row in two months, the power tariff was raised, average 5 percent in retail level on every occasion. According to the new order, the retail tariff was raised at different levels of consumers. The tariff was raised for lower-level consumers by an average 5 percent to Tk 4.35 from Tk 4.14 (each kilowatt hour) per unit. Bulk tariff was not raised this time. Also Read: Power tariff further raised at both bulk and retail levels, effective from tomorrow Earlier on January 13, the government raised the electricity tariff by 5 percent at the retail level with effect from January 1 and on January 12 raised again by 5 percent with effect from February 1. On November 21, the bulk power tariff was hiked by 20 percent to Tk 6.20 per kilowatt hour by Bangladesh Energy Regulatory Commission (BERC) with effect from December 1. The government recently amended the BERC Act empowering the Power Division to raise power, gas and petroleum fuel by administrative power anytime it wants. Also Read: Retail power tariff hiked 5% to Tk0.19 per unit for lifeline consumers, Tk0.36 on average for others Applying that amended Act, the new gazette notification was issued to raise the electricity tariff at bulk and retail levels, bypassing the authorities of the energy regulator. Meanwhile, energy experts believe the tariff enhancement decision came in compliance with the conditions of the International Monetary Fund (IMF) that recently approved $4.5 billion in loan to Bangladesh.  

Bangladesh has expressed satisfaction with increasing trade with India and emphasised removing all tariff and non-tariff barriers to reduce the trade deficit. At the foreign office consultation (FOC) Wednesday, Bangladesh sought India's cooperation in resolving the pending issues, especially, concluding water-sharing treaties, including Teesta. Bangladesh also emphasised maintaining a predictable flow of commodities from India for a stable market in Bangladesh. Foreign Secretary Masud Bin Momen and Foreign Secretary of India Vinay Mohan Kwatra led their respective delegations at the FOC held at the Foreign Service Academy. Masud congratulated India for taking the presidency of the G20 and thanked it for inviting Bangladesh as a "guest country." The Indian foreign secretary said they included Bangladesh as a guest country for sharing the experience of the growth trajectory of Bangladesh achieved under the "visionary leadership" of Prime Minister Sheikh Hasina with other members of G20. Kwatra described Bangladesh as India's trusted friend and reiterated that India is "committed to working with Bangladesh in the coming days." He said Bangladesh is one of the most important pillars towards India's "Neighbourhood First Policy" and a key partner to its "Act East Policy." He also emphasised exploring and working together in emerging sectors for cooperation.  Both the foreign secretaries expressed satisfaction with the "excellent bilateral relationship" that exists between the two countries. Read more: India to help Bangladesh import hydropower from Nepal, Bhutan: FS