Bangladesh has significantly expanded its order for aircraft from Boeing in what appears to be a calculated effort to convince the United States to scale back threatened tariffs. The government in Dhaka has formally placed an order for 25 Boeing jets, up from an earlier plan for 14, as trade negotiations enter their final phase.
The order forms are part of a broader strategy to narrow a US$6 billion trade deficit and preempt a looming 35 percent tariff on Bangladeshi goods, particularly the vital garment exports, imposed under the Trump administration. Commerce Secretary Mahbubur Rahman has made clear that Bangladesh urgently requires new aircraft over the next one to two years to support the national carrier, Biman Bangladesh Airlines.
Alongside the aviation order, Dhaka has also agreed to import substantial volumes of U.S. commodities—700,000 tonnes of wheat annually for five years, as well as increasing purchases of soybean oil, cotton, and potentially liquefied natural gas. Officials view these moves as reciprocal steps aimed at improving trade relations and pressuring Washington to offer tariff relief.
Diplomats Depart for Washington
A senior delegation from Bangladesh, including Commerce Adviser Sk. Bashir Uddin, Commerce Secretary Mahbubur Rahman, and National Security Adviser Khalilur Rahman, will depart Dhaka today, heading to Washington for the third and final round of talks with the U.S. Trade Representative (USTR). The aim is to secure a more generous duty structure, possibly in the range of 15 to 20 percent, akin to benefits enjoyed by countries such as Japan and Vietnam.
In previous rounds held earlier in July, the U.S. side sought clarity on what trade concessions Bangladesh could offer in exchange for tariff reductions. Bangladesh submitted its final position in a paper delivered to the USTR on 23 July.
Reactions: Surprise at Biman Airline
Despite the government’s announcement, Biman Bangladesh Airlines reportedly had no prior knowledge of the order. Company officials expressed astonishment that the government arranged such a significant acquisition without their involvement, circumventing internal committees and planning channels.
Furthermore, industry experts warn against overcommitting Biman’s limited resources due to politically motivated purchases. Some suggest that the fleet expansion should have been guided by demand-based assessments and actual operational needs, rather than trade diplomacy.
Strategic Balance: Trade Leverage or Financial Risk?
The government insists the aviation deal and commodity purchases are part of a long-term trade strategy, not ad hoc appeasements. Commerce officials emphasize that the aircraft order is a business contract directly with Boeing, not a state-mandated acquisition, and that Bangladesh remains free to consider Airbus or other manufacturers in future acquisitions.
Recently, Bangladesh has explored options with Airbus, including talks over 10 Airbus A350s—although those proposals eventually stalled. The shift to Boeing is seen by some as a tactical operation, designed to signal alignment with U.S. commercial interests.
If tariff relief can indeed be secured at more moderate levels—well below the threatening 35 percent rate—Bangladesh stands to protect its export competitiveness and reduce pressure on its garment industry. However, the outcome hinges on how U.S. negotiators respond during the talks between 29 and 31 July and whether they regard the aviation and agricultural deals as sufficient compensation for reduced import duties.
Outlook
Bangladesh’s trade tactics reflect the high stakes of the moment: whether the gambit will succeed remains to be seen. If Washington offers a tariff concession, the Boeing order may retrospectively appear wise. If not, the country could find itself locked into a costly aircraft program with limited commercial justification. Either way, the coming days in Washington will likely determine Bangladesh’s economic trajectory during a delicate period of global trade recalibration.
