US imposes 35 percent tariff on goods from Bangladesh, interim govt calls the move 'unjustifiable'

It is slightly lower than the 37 percent rate that was previously proposed by the American government.

The decision was conveyed to the Bangladeshi interim government via a letter addressed to interim chief Dr Muhammad Yunus.

In the letter, Trump announced 35 percent tariff would be imposed on all Bangladeshi goods entering the United States from August 1.

"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 product 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 wrote in his letter as quoted by Dhaka Tribune.

Trunp had imposed retaliatory tariffs on Bangladeshi products and goods from several other nations on April 1.

He had imposed a tariff of 37 percent on Bangladeshi goods at that time, up from the average rate of 15 per cent.

'Not A Justified Move'

Finance Advisor Salehuddin Ahmed has called the step of imposing 35 percent tariff as unjustified.

Vietnam, seen as a major competitor of Bangladesh in the garments sector, will be subject to a reduced 20 percent tariff under special conditions.

Salehuddin told bdnews22: “It’s true that our trade deficit with the US is only about $5 billion, while Vietnam’s is $125 billion. Even so, the US has agreed to offer Vietnam some concessions. In that case, given our much smaller deficit, there is no justification for imposing such a high tariff on us. We will continue to negotiate.”