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Bangladesh signs US wheat-import deal in bid to curb tariff pressure
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Bangladesh signs US wheat-import deal in bid to curb tariff pressure
Jul 20, 2025 3:48 AM

DHAKA, July 20 (Reuters) - Bangladesh signed a deal on

Sunday to import 700,000 tonnes of wheat annually from the

United States over the next five years, in a move aimed at

securing tariff relief from the Trump administration amid

growing trade tensions, officials said.

The agreement - formalised through a memorandum of

understanding inked in Dhaka between the Ministry of Food and

trade group U.S. Wheat Associates - comes at a critical moment,

with Washington set to impose a 35% tariff on Bangladeshi

exports from August 1.

Officials in Dhaka hope the pact will help narrow

Bangladesh's $6 billion trade deficit with the U.S. and pave the

way for more-favourable treatment of key export items,

particularly garments, which dominate shipments to the United

States.

Bangladesh's de facto food minister, Ali Imam Majumder, said

at the signing ceremony that the agreement would not only ensure

a steady supply of high-quality wheat at competitive prices but

also strengthen trade ties between the two nations. "This step

reflects our willingness to build mutual trust and deepen

economic cooperation with the United States," he said.

The U.S. tariff hike has rattled Bangladesh's export sector,

especially the ready-made garments industry, which fears losing

competitiveness in one of its largest markets.

The wheat initiative is widely seen as part of a broader

diplomatic and trade strategy to soften Washington's stance and

open the door for further negotiations.

Officials from the Ministry of Commerce said talks are

ongoing with U.S. counterparts in an effort to lower the duty,

arguing that such high tariffs could significantly undermine

Bangladesh's competitiveness in the American market.

Bangladesh imports around 7 million tonnes of wheat each

year, with the bulk sourced from the Black Sea region due to its

lower cost. Smaller volumes of higher-quality wheat, including

some from the United States, are also imported for blending.

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