On July 20, 2025, Bangladesh signed a Memorandum of Understanding (MoU) with the United States to import 700,000 tonnes of high-quality wheat annually for the next five years at competitive prices. 

The deal was formalised at the Ministry of Food in Dhaka, with Md Abul Hasanat Humayun Kabir, Director General of the Food Department, signing for Bangladesh and Joseph K. Sower, Vice President of US Wheat Associates, signing for the United States, in the presence of Bangladesh’s Food Adviser Ali Imam Majumdar and the US Ambassador in Dhaka.

This agreement comes at a strategic moment as the United States is preparing to impose a 35% tariff on Bangladeshi exports, effective August 1, amid ongoing trade tensions. Previous tariff negotiations have been inconclusive, with the US placing conditions related to increased security cooperation as part of the deal.

The wheat import MoU is widely regarded as both a trade and diplomatic manoeuvre, designed to strengthen Bangladesh’s position in upcoming third-round tariff talks with the Trump administration and mitigate the potential economic impact of the new US tariffs. Bangladesh, which faces a $6 billion trade deficit with the US, hopes this step will help reduce the deficit and encourage more favourable treatment of its main export items, especially ready-made garments.

The Ministry of Food emphasised that the agreement will contribute to national food security, nutritional improvements, and a stable food supply—critical as Bangladesh typically imports 6–7 million tonnes of wheat each year, mostly from the Black Sea region due to lower prices; smaller amounts of higher-quality wheat from the US have previously been used for blending.

The increase in US wheat imports marks a significant shift in sourcing policy, expected to benefit government safety net programs, ration systems, and possibly private sector actors to meet higher import targets.

At the signing, Food Adviser Ali Imam Majumdar noted this deal “creates opportunities to build trust and broader mutual trade cooperation" between the two nations, with benefits anticipated for both populations. Officials from the Ministry of Commerce stated that talks continue with their US counterparts in pursuit of reducing the high tariff, stressing that the steep levies could “significantly impair Bangladesh’s competitiveness in the American marketplace”.

The US wheat import agreement represents both an economic contingency plan ensuring staple food supplies and a vital negotiating tool as Bangladesh seeks to protect its export industries and stabilise bilateral trade relations with the United States in the face of looming tariffs.

Based On ANI Report