Attention turns to midnight August 1, when President Donald Trump’s reciprocal tariffs will automatically take effect for countries without finalised trade deals. Trump reiterated that “the August first deadline is the August first deadline– it will not be extended,” calling it “a big day for America.”
The tariffs, ranging from 25% to 50%, are aimed at nations still without agreements, including big players like India, Canada, Mexico, Taiwan, and China. Trump confirmed that India will face a 25% tariff, plus an added penalty over its Russian oil imports, saying negotiations are ongoing but insisting such measures would “remedy” unfair trade.
Several nations already secured deals, including South Korea, the EU, Japan, the UK, Vietnam, Pakistan, and the Philippines, agreeing to lower tariff rates in exchange for major US energy purchases and multi-billion-dollar investments. Trump hailed these agreements as evidence his strategy is forcing countries to “respect American trade.”
Bangladesh remains one of the most vulnerable economies, facing a proposed 35% tariff that could severely impact its export-dependent garment sector.
To ease US pressure, Dhaka has agreed to purchase 25 Boeing aircraft, import 700,000 tonnes of US wheat annually for five years, and increase imports of soybean oil and cotton to cut its $6 billion trade surplus.
A Bangladeshi delegation currently in Washington described recent talks as “constructive,” but no final agreement has been reached.
Meanwhile, legal uncertainty lingers.
A federal court is reviewing whether elements of Trump’s tariff plan exceed presidential authority, with arguments scheduled just hours before the deadline. However, the tariffs remain on track to activate unless court intervention or last-minute diplomacy halts them.
With the clock ticking, Trump’s hardline stance has left global partners scrambling. Whether negotiations produce breakthroughs or tariffs bite at midnight, the outcome is set to redefine global trade and test Bangladesh’s ability to shield its critical export sector.
