The agreement – formalised through a memorandum of understanding inked in Dhaka between the food ministry and trade group US Wheat Associates – comes at a critical moment, with Washington set to impose a 35% tariff on Bangladeshi exports from Aug 1.

Officials in Dhaka hope the pact will help narrow Bangladesh’s US$6 billion trade deficit with the US and pave the way for more-favourable treatment of key export items, particularly garments, which dominate shipments to the US.

Bangladesh’s de facto food minister, Ali Imam Majumder, said at the signing ceremony that the agreement would not only ensure a steady supply of high-quality wheat at competitive prices but also strengthen trade ties between the two nations. “This step reflects our willingness to build mutual trust and deepen economic cooperation with the US,” he said.

The US tariff hike has rattled Bangladesh’s export sector, especially the ready-made garments industry, which fears losing competitiveness in one of its largest markets.

The wheat initiative is widely seen as part of a broader diplomatic and trade strategy to soften Washington’s stance and open the door for further negotiations.

Officials from the commerce ministry said talks are ongoing with US counterparts in an effort to lower the duty, arguing that such high tariffs could significantly undermine Bangladesh’s competitiveness in the American market.

Bangladesh imports around 7 million tonnes of wheat each year, with the bulk sourced from the Black Sea region due to its lower cost. Smaller volumes of higher-quality wheat, including some from the US, are also imported for blending.