US views its ties with BD through lenses of trade: Michael Kugelman

South Asia affairs expert Michael Kugelman has said the Trump administration has drastically cut foreign aid and has "little interest" in devoting resources to democracy promotion or nation-building in Bangladesh.

Referring to recent telephone conversations between Chief Adviser Prof Muhammad Yunus and US Secretary of State Marco Rubio, Kugelman said the readouts of the Yunus-Rubio call from both governments suggest Washington now views its ties with Dhaka through the lenses of trade and great-power competition.

Kugelman, in Foreign Policy’s South Asia Brief, mentioned that the pair spoke about strengthening economic ties and partnering on enhancing security in the Indo-Pacific—the latter of which, for the United States, means countering China.

Both goals present challenges for Dhaka, Kugelman said.

Bangladesh faces a 37 per cent US tariff if it does not work out a trade deal with Washington, said the foreign affairs expert.

And it has long pursued a non-aligned foreign policy, aiming to balance ties with major powers rather than siding with or against them, Kugelman observed.

On Monday, Prof Yunus spoke on the phone with US Secretary of State Marco Rubio, marking one of the highest-level Bangladesh-US engagements to date during the second Trump administration.

The call provides a window into how the United States may approach its relationship with Bangladesh—one that has shifted significantly since Trump returned to office, Kugelman said.

During the final months of the Biden administration, US officials pledged new development aid and technical assistance for reforms to an interim government looking to rebuild democracy in Bangladesh after former Prime Minister Sheikh Hasina fled the country amid mass protests last August.

During the phone call, both sides affirmed their ‘shared commitment’ to deepening economic ties between the two countries.

The US Secretary of State and Chief Adviser also affirmed their shared commitment to ‘enhancing security and stability’ throughout the Indo-Pacific region.

“The Secretary and Chief Adviser affirmed their shared commitment to deepening economic ties between the United States and Bangladesh and to enhancing security and stability throughout the Indo-Pacific region,” said spokesperson at the US State Department Tammy Bruce after the telephone conversation.

In April this year, Chief Adviser Prof Yunus held an emergency meeting with top experts, advisers, and officials, giving necessary directives to deal with the US tariff issue.

The United States had announced a 37 per cent tariff on imports from Bangladesh as part of President Donald Trump's sweeping new "Reciprocal Tariffs" policy.

The government hopes that their ongoing discussions with the US government will help address the tariff issue.

A follow-up meeting is scheduled to take place in the US on July 8.