US President Donald Trump imposes a 35% tariff on Muhammad Yunus’s Bangladesh, keeps the option of “No Tariff” if the country decides to set up companies in America

In a decisive move aimed at recalibrating its global trade balance and sending a strong signal to unfriendly regimes, the United States has announced a 35% on all Bangladeshi imports, citing long-standing trade imbalances and non-cooperative economic policies.

The tariff, set to take effect from August 1, 2025, was formally announced in a letter addressed to Mohammad Yunus, the Chief Advisor to the Pgovernment of Bangladesh. In a letter shared by US President Donald Trump on Truth Social platform, he emphasized America’s intent to pursue a “balanced, fair, and trade-oriented” approach, while indirectly calling out regimes seen as adversarial.

 

 

United States, which calls itself the “number one market in the world,” has stated that it will continue trade with Bangladesh only under new terms-ones that eliminate what it calls “decades of unfair trade practices.” Letter specifically blames Bangladesh’s tariff and non-tariff barriers for America’s unsustainable trade deficits. The letter highlights that 35% is still significantly lower than what would be required to eliminate the trade deficit disparity with Bangladesh.

The letter offers an alternative path: Bangladeshi companies can avoid the 35% tariff altogether by setting up manufacturing operations within the United States. If they agree, Washington promises to act “quickly, swiftly, professionally, and routinely”-in other words, to fast-track approvals within weeks. However, if Bangladesh retaliates by increasing its own tariffs or erecting new trade barriers, those actions will be met with additional levies on top of the existing 35% duty.

President Trump, speaking about the decision, said, “These tariffs are necessary to correct the many years of Bangladesh’s tariff and non-tariff policies, which have caused unsustainable trade deficits. This is a threat not only to our economy-but to our national security!”

Bangladesh isn’t the only country to feel the wrath of Trump. Within hours, tariffs were also imposed on 12 other countries, including South Korea, Japan (25%), and others such as Myanmar, Indonesia, Malaysia, Serbia, Cambodia, Thailand, and more. The move is part of a larger U.S. strategy to clamp down on trade deficits and punish nations seen as economic free-riders or geopolitical fence-sitters. US message to Bangladesh is blunt warning to realign its policies or risk deeper isolation in the global trade network.

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