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Dhaka delays USTR talks after US SC strikes down Trump tariffs

Published : Tuesday, 24 February, 2026 at 12:00 AM  Count : 357
Bangladesh is set to delay talks with the United States Trade Representative (USTR) after the US Supreme Court struck down a large swathe of President Donald Trump's tariffs on Friday.

"The government will hold talks with the United States Trade Representative (USTR) shortly to determine whether the recently signed bilateral trade deal remains valid after the US Supreme Court's verdict," a senior official of the Foreign Ministry said, preferring to remain anonymous.

This time Bangladesh will not send any letter quickly as it did earlier, and the government will go slowly, he added.
In a hasty move, the interim government signed the American Reciprocal Tariff (ART) agreement on February 9, just three days before national elections, to narrow the bilateral trade gap.

The US Supreme Court, in its ruling, declared that Trump had exceeded his authority under the International Emergency Economic Powers Act (IEEPA) by imposing sweeping reciprocal tariffs without congressional approval. The ruling limits the president's authority to impose tariffs under the law, and it is unclear whether agreements concluded under that authority remain valid.

Questioning the timing of the deal, Professor Anu Muhammad said, "The agreement was signed on 9 February and the election was held on 12. There is a Bangla phrase, 'Noy-Chhoy' [trick], and this government has literally done that."

"Firstly, we will observe their position and the status of the previous trade agreement with the US," Commerce Secretary Mahbubur Rahman told the media. According to him, the ministry plans to hold stakeholder meetings with the local business community to let them know about the agreement and the latest situation, he added.

Two pressures drove the rush, according to Secretary Rahman. The tariff rates being offered to competing countries were uneven, and Washington was pushing for a quick signature before a new government took office and potentially stalled negotiations.

"We will have to talk with the USTR first about whether the already signed agreement will be cancelled or not, as the deal was signed in reference to the presidential power under IEEPA," the secretary said.

However, following the court ruling, Trump slapped a new 15 percent tariff on all US imports and ordered new trade investigations that could lead to additional levies in the coming months, while insisting that trade and investment deals reached with nearly 20 countries - most with higher tariffs - should remain untouched.

Dhaka is proceeding carefully. If the new 15 percent universal tariff applies equally to all countries, Bangladesh sees little urgency to re-engage.

"In that case, Bangladesh will delay negotiations with the US," said the secretary, noting that should discriminatory rates re-emerge, the government intends to move quickly to secure a lower ceiling.

"This time Bangladesh will not send any letter quickly as it did earlier, and the government will go slowly now," he added.

The USTR, for its part, signalled on February 20 that it intends to press ahead with Trump's trade agenda by other means.

In a statement, it noted that between April and December 2025, America's goods trade deficit fell by 17 percentage points from a 40 percent deficit, in part due to deals that kept protective tariffs in place while opening foreign markets to American exports.

The office said it would launch fresh investigations under Section 301 of the Trade Act of 1974, targeting practices it deems unfair, including industrial overcapacity, forced labour, pharmaceutical pricing, and discrimination against American technology firms.



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