Bangladesh orders 25 Boeing planes as part of push to ease US tariffs
The moves are part of a broader strategy to narrow a $6 billion U.S. trade deficit with Bangladesh and avoid a looming 35% tariff hike that has rattled the country's export sector, especially the garments industry which risks losing competitiveness in one of its largest markets.
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"We need new aircraft urgently, possibly within the next couple of years," Commerce Secretary Mahbubur Rahman told reporters. "Initially, it was 14 planes - now it's 25," he said, referring to an earlier plan to purchase aircraft from the U.S.-based manufacturer.
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Alongside the aircraft deal, Bangladesh is boosting imports of wheat, soybean oil and cotton from the United States. A new agreement signed earlier this month will see the country import 700,000 tonnes of U.S. wheat annually over the next five years.
Officials hope that these steps will help improve trade relations with Washington and soften the impact of the Trump administration's tariff measures.
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Bharat Forge, with 40–45% of revenue from the U.S., dropped over 3%, while Sona BLW Precision, which earns 30–35% from the U.S., fell nearly 2%.Steel Strips Wheels, which sends 63% of its export volumes to the U.S., fell 2.2%, while Garware Hi Tech Films, deriving 45% of its revenue from the U.S., dropped 3.5%. Tata Motors, largely insulated due to existing US-UK and US-EU tariff frameworks on JLR exports, still shed 2.4%.Indian textile stocks were among the worst performers, reeling from the tariff-induced erosion in competitiveness. Shares of Gokaldas Exports and Pearl Global fell 3.9% and 3.2% respectively. Kitex Garments, with 70% of sales to the U.S., plunged 5%. KPR Mill and Vardhman Textiles slid 6.2% and 2.8%, respectively.'If effective, the steep 50% tariff would be similar to a trade embargo,' Nomura said. 'Lower value addition and thinner margins across industries like textiles and gem & jewellery could jeopardise operations.'The pain is accentuated by favourable deals signed by competitors. Pakistan's rate has been cut to 19%, Bangladesh's to 20%, while Vietnam has also reduced its rate to 20%, widening the gap for Indian and jewellery exporters were not spared. Goldiam International, which earns 90% of its revenue from the U.S., fell 4.7%. Granite exporter Pokarna dropped 4.5%.Seafood exporters bore the brunt of the selloff after the U.S. hiked tariffs to 50%. Avanti Feeds fell 5.3% to Rs 631.80, Apex Frozen Foods slid 4% to Rs 218.80, and Waterbase Ltd dropped nearly 2% to Rs impact on capital goods stocks was mixed. Cummins India, which derives 5–15% revenue from sales to its U.S. parent, slipped about 1%. Thermax fell 2%, while Jefferies had previously noted that 'China tariffs higher, so might have limited impact.' KEI Industries, with less than 5% U.S. exposure, was took a hit, especially companies involved in refrigerator gas exports. Navin Fluorine International, with 24% U.S. revenue exposure, fell 1.7%, while PI Industries and SRF Limited were down 1.6% and 2.5%, noted earlier that 'agrochemicals are broadly outside the tariff ambit,' providing some cushion for the sector. However, Navin Fluorine and SRF remain vulnerable due to their U.S.-facing product stocks bore the brunt of a parallel tariff penalty tied to India's ongoing purchases of Russian crude. Reliance Industries fell 1.1%, while Bharat Petroleum and Hindustan Petroleum each dropped around 1.5%. Indian Oil Corporation lost nearly 1%.'Reliance Industries, BPCL, HPCL and IOCL may need to diversify sourcing beyond Russia,' Jefferies had previously said, warning that narrowing discounts on non-Russian barrels could erode refinery firms with large U.S. order books also tumbled. Waaree Energies, with 59% of its 25GW overseas order book headed to the U.S., dropped 3.6%. Premier Energies lost 1.8%.The tariff move underscores a marked deterioration in the relationship between Washington and New Delhi since the much-publicised February meeting between Trump and Prime Minister Narendra Modi. In recent weeks, Trump has publicly referred to India's economy as 'dead,' branded its trade barriers 'obnoxious,' and accused it of 'profiting' from cheap Russian oil while remaining silent on Russia's war in Ukraine, now in its fourth Ministry of External Affairs called the move 'extremely unfortunate,' and pointed out that 'many other countries are also importing Russian oil in their national economic interest.'Trade between the world's largest and fifth-largest economies is valued at over $190 billion, according to Reuters, and the latest escalation throws a spotlight on the frictions that could derail a steadily growing bilateral economic relationship.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
