FX.co ★ Bangladesh Strikes U.S. Wheat Deal to Ease Tariff Pressure

Bangladesh inked an agreement on Sunday to purchase 700,000 tons of wheat from the United States each year over the next five years. This move is intended to ease trade tensions and prevent upcoming U.S. tariffs. The memorandum of understanding was signed in Dhaka with U.S. Wheat Associates, ahead of a scheduled 35% tariff on Bangladeshi exports set to commence on August 1. Officials are optimistic that this agreement will help narrow Bangladesh’s $6 billion trade deficit with the U.S. and bolster prospects for critical exports, such as garments. "This agreement signifies our commitment to foster mutual trust and enhance economic collaboration," stated Food Minister Ali Imam Majumder. The deal guarantees a reliable wheat supply and is a strategic component of a larger initiative to influence Washington’s policy stance. Considering the threat to garment exports, Bangladesh’s Commerce Ministry is actively negotiating to reduce the tariff, highlighting potential impacts on competitiveness. Currently, Bangladesh imports approximately 7 million tons of wheat annually, primarily from the Black Sea region, with a smaller portion sourced from the U.S. for blending purposes.