Bangladesh’s interim government is anticipating a favorable resolution in trade negotiations with the US, after being among the hardest hit by President Donald Trump’s sweeping tariffs in April.

“We’ve had at least seven rounds of negotiations, both virtual and in-person, and we expect a positive outcome,” Commerce Secretary Mahbubur Rahman said in an interview Monday. 

Rahman also said the US has hinted at creating two separate trade bands — one for least developed countries or LDCs, a group that includes Bangladesh, and the other for the remaining trading partners.

Bangladesh is “the most advanced” among least developed nations in these negotiations, he said, adding US officials have privately assured Bangladesh that punitive tariffs would likely be avoided if discussions progress.

A trade agreement will come as a relief for the economy recovering from a political turmoil last year that forced former Prime Minister Sheikh Hasina to flee the country. The 37% US tariff on exports poses significant risks for the South Asian nation, particularly its ready-made garment sector, which accounts for 80% of its total exports and employs millions of workers.

Bangladesh will need to clinch as good or a better deal than the one that rival Vietnam reached with the US last week, to be competitive in the global market. The agreement with Vietnam sets a 20% tariff on exports to the US, and imposes a 40% duty on goods deemed to be transshipped.

The US has sought zero-tariff access for American products entering Bangladesh, particularly in sectors where the South Asian nation already has competing agreements, such as automobiles, Rahman said.

The nation is awaiting final documents before making any binding commitments, Rahman said. “We won’t decide unilaterally. This will be a consultative process,” he said.

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