On August 1, 2025, the United States finalized a deal reducing tariffs on Bangladeshi goods to 20%, down from 35%, following intense negotiations led by Chief Adviser Muhammad Yunus. This trade concession, hailed as a diplomatic win by the interim government, came at the cost of Bangladesh entering a secret agreement that bars military procurements from China and Russia. Such a pact has alarmed many within Bangladesh’s defense establishment, given the country’s heavy reliance on Russian and Chinese military technology. US officials, including Charge d’Affaires Tracey Ann Jacobson, reportedly warned Bangladesh that continued defense ties with Beijing or Moscow could result in targeted sanctions. The arrangement has also angered China and Russia, particularly as they launched joint military drills in early August, raising the risk of retaliation that could threaten Bangladesh’s vital garment industry and supply chains. The Yunus administration’s pivot marks a marked departure from Bangladesh’s historically non-aligned policy, sparking accusations from former Prime Minister Sheikh Hasina of “selling the nation” and deepening concerns over the erosion of the country’s sovereignty and economic independence.