Bangladesh has approved the purchase of 220,000 metric tons of wheat from the United States, according to a Reuters report.
This marks a shift in its trade strategy amid growing pressure from the Trump administration to narrow the $6 billion bilateral trade gap.
The wheat will be bought at $302.75 per metric ton through a Singapore-based trading house, the report said, citing a senior official from Bangladesh’s food ministry.
The approval is part of a broader effort to reduce steep US-imposed tariffs and demonstrate goodwill in trade negotiations.
In July, the two countries signed a memorandum of understanding for Bangladesh to import 700,000 metric tons of wheat annually over five years.
Shift from aid to commercial trade
Until recently, Bangladesh had received US wheat and food grains through donations facilitated by USAID.
However, the Trump administration dismantled that programme earlier this year, prompting Dhaka to explore direct purchases instead.
The newly announced deal marks a significant move from aid-based food support to sustainable commercial supply chains.
US Wheat Associates, a major grain export promotion group, is now pursuing similar deals in Asia and sub-Saharan Africa—regions that previously relied on donated wheat.
The group’s vice president of overseas operations, Brian Liedl, said this is part of a wider strategy to encourage countries to replace aid shipments with direct trade, especially as tariffs become a key negotiating tool in US foreign policy.
Boeing order signals broader shift in import policy
On July 27, Bangladesh further expanded its economic engagement with the United States by ordering 25 Boeing aircraft and increasing imports of other American goods.
These moves are widely seen as attempts to mitigate the threat of retaliatory tariffs from Washington.
President Trump had earlier warned of imposing a 35% tariff on Bangladeshi exports starting August 1 unless Dhaka took steps to address the trade imbalance.
The combined wheat purchase and Boeing deal appear to be part of Bangladesh’s tactical response to that ultimatum, aimed at preserving export access to the American market, particularly for garments.
Trade delegation holds talks in Washington
A Bangladeshi delegation is currently in Washington for trade discussions, further underlining Dhaka’s intent to recalibrate its relationship with the United States.
Officials in Dhaka said the talks are aimed at preventing the implementation of punitive tariffs while securing favourable trade terms going forward.
Bangladesh typically sources most of its wheat from Black Sea countries, which offer more competitive pricing.
US and Canadian wheat, though of higher quality, has historically been imported in smaller volumes for blending.
The latest agreement indicates a willingness to prioritise strategic ties over price, at least in part, particularly given the rising stakes of bilateral negotiations and global food supply shifts.
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