1. January 2025 – E-Cigarette Ban
– Bangladesh bans vaping products to protect youth health
– First sign of stricter trade policies under new leadership
2. February 2025 – Political Shift
– Sheikh Hasina’s government falls
– Muhammad Yunus becomes interim leader
– Early signs of pro-China leanings emerge
3. March 2025 – Defense Deal Cancelled
– Bangladesh scraps $21M naval tugboat contract with India’s GRSE(Garden Reach Shipbuilders & Engineers Ltd)
– First major defense snub to India under new government
4. April 2025 – Trade War Begins
– Bangladesh bans Indian goods (yarn, paper, fish, ceramics)
– Joins 2 new China-led BRI infrastructure projects
5. May 2025 – Escalation
– India retaliates by blocking Bangladeshi goods via land routes
– Bangladesh launches 800cr Taka (~$68M) startup fund
Bangladesh has cancelled an ₹800 crore defence deal, raising questions about future military cooperation and procurement decisions.
– Yunus makes controversial “guardian of Bay” remarks- He even said India’s northeast is “landlocked” and needs Bangladesh—this upset India
– Trade losses reach $770M for Bangladesh
Current Situation (May 2025):
– Trade war ongoing with no resolution in sight
– Political relations at lowest point in years
– China gaining influence through BRI projects
– Both economies feeling the strain of trade restrictions