Dhaka, July 28 - In a strategic move to address escalating trade tensions with the United States, Bangladesh has placed an order for 25 aircraft from Boeing, a significant step aimed at reducing a $6 billion trade deficit and mitigating the impact of steep tariffs imposed by the Trump administration. The announcement, made by Commerce Secretary Mahbubur Rahman on July 27, 2025, underscores Bangladesh’s urgent efforts to safeguard its export-driven economy, particularly the garments industry, which faces the risk of losing competitiveness in one of its largest markets due to a looming 35% tariff hike. This aircraft order, an expansion from an initial plan to purchase 14 planes, is part of a broader initiative to strengthen trade relations with Washington and secure a more favorable duty structure for Bangladeshi exports.
.gif)
The decision to procure 25 Boeing aircraft aligns with Bangladesh’s need to modernize and expand the fleet of its national carrier, Biman Bangladesh Airlines, which currently operates 19 aircraft, including 14 Boeing planes and five Dash 8-400s. Rahman emphasized the urgency of the acquisition, noting that new aircraft are needed within the next couple of years to meet growing demand and support the airline’s long-term expansion plan, approved in late 2023, which aims to grow the fleet to 47 by 2034. The order, however, is also a calculated diplomatic move, as Bangladesh seeks to demonstrate its commitment to balancing trade with the United States. Alongside the aircraft deal, the government has ramped up imports of key American goods, including wheat, soybean oil, and cotton. A notable agreement signed on July 20, 2025, commits Bangladesh to importing 700,000 tonnes of U.S. wheat annually for the next five years, further signaling its intent to reduce the trade imbalance.
The timing of the Boeing order is critical, as a high-level Bangladeshi delegation, led by Commerce Adviser Sk Bashir Uddin and including Rahman, National Security Adviser Khalilur Rahman, and WTO Wing Director General Nazneen Kaiser Chowdhury, is set to engage in final trade negotiations with the United States Trade Representative (USTR) from July 29 to 31, 2025. These talks, occurring just before the August 1 tariff deadline, aim to secure a tariff rate lower than the 26% proposed for India or the 20% finalized for Vietnam. Rahman expressed optimism that the aircraft order and increased imports could persuade the U.S. to offer a tariff rate between 15% and 20%, aligning Bangladesh with its regional competitors.
However, the Boeing order awaits approval from Bangladesh’s Cabinet Committee on Economic Affairs and the Cabinet Committee on Government Purchase, indicating that formalities remain while the commitment has been made. The estimated cost of the aircraft, ranging from $250 million to $300 million each, depending on the model, underscores the significant financial investment involved. Additionally, Bangladesh has explored options with Airbus, having previously considered purchasing 10 A350s, but the current focus on Boeing reflects both strategic trade considerations and the immediate need to bolster Biman’s fleet. By leveraging this order, alongside increased imports of U.S. goods, Bangladesh aims to soften the economic blow of potential tariffs and maintain its competitive edge in the global market.