Archive · 7 Sep 2026
Bangladesh Remains Locked Into US Deals Despite Tariff Rulings
Bangladesh agreed to buy many goods from the United States.
These include natural gas, airplanes and grain.
The deals were connected to an agreement meant to prevent American tariffs.
A Bangladeshi committee approved a long-term gas deal with Gunvor USA LLC.
The agreement would provide 117 gas shipments through 2038.
US courts later rejected the legal basis for the tariff threats twice.
The trade agreement has not formally started because required government procedures were not completed.
Critics say Bangladesh is still buying from the US to show political support, even though the agreement may no longer be necessary.
Bangladesh committed billions of dollars to US energy, aircraft and grain purchases under a trade pact intended to avert tariffs.
A cabinet committee approved a decade-long Gunvor USA LLC LNG deal covering 117 cargoes, or about 7.5 million tonnes, through 2038.
The purchases form part of $15 billion in US energy commitments Bangladesh announced under its February Agreement on Reciprocal Trade.
US courts have twice rejected the legal basis for Washington’s tariff threats against Bangladesh since February, according to the report.
Critics say Bangladesh is honoring costly commitments despite the pact not taking effect and requiring broad tariff concessions without guaranteed US purchases of Bangladeshi goods.
- Who
- Bangladesh, the United States, Gunvor USA LLC and Bangladesh’s interim government under Muhammad Yunus.
- What
- Bangladesh is proceeding with multibillion-dollar US purchases despite US court rulings rejecting the legal basis for tariff threats.
- When
- The trade agreement was signed on February 9; a cabinet committee approved the LNG deal on August 12, and shipments are planned through 2038.
- Where
- The commitments involve trade between Bangladesh and the United States.
- Why
- The purchases were intended to avert US tariffs and signal Bangladesh’s political alignment with Washington.
Bangladesh’s Trade and Political Rationale
Critics’ Concerns
Purpose of the purchases
Bangladesh’s Trade and Political Rationale
The commitments were intended to avert American tariffs and demonstrate that Bangladesh wants stronger ties with the United States.
Critics’ Concerns
Critics say Bangladesh is maintaining an extraordinary purchasing schedule even after US courts rejected the legal basis for the tariff threats.
Trade agreement
Bangladesh’s Trade and Political Rationale
Proceeding with US purchases could support the objectives of the February Agreement on Reciprocal Trade and signal political alignment.
Critics’ Concerns
The agreement has not formally taken effect, requires Bangladesh to remove duties on nearly all US goods, and provides no guaranteed US purchases of Bangladeshi products.
Ability to withdraw
Bangladesh’s Trade and Political Rationale
The agreement includes a 60-day exit clause, which provides a formal route for withdrawal.
Critics’ Concerns
Researcher Mohammad Abdur Razzaque said the exit clause and the court rulings do not help Bangladesh secure an exit from its elevated US import commitments.
- Trade agreement
- Agreement on Reciprocal Trade, signed by Bangladesh and the United States on February 9
- Planned US energy purchases
- Approximately $15 billion
- LNG deal
- 117 cargoes, totaling roughly 7.5 million tonnes, through 2038
- LNG supplier
- Gunvor USA LLC
- Bangladesh tariff obligation
- Eliminate duties on nearly all US goods immediately or within five to 10 years
- US purchase guarantee
- The agreement contains no guaranteed US purchase of Bangladeshi products
- Legal status
- The agreement has not formally entered into force because domestic notification procedures remain incomplete