Exclusive: A few Bangladeshi Walmart clothing orders are on hold because of the possibility of US tariffs
As U.S. President Donald Trump threatens to impose a 35% tariff on the textile hub, three factory owners and a supplier’s letter obtained by Reuters claim that suppliers to Walmart (WMT.N), opens new tab, have postponed or delayed some orders from Bangladeshi garment manufacturers.
Bangladesh depends on the apparel industry for 10% of its GDP and 80% of its export revenue, making it the third-largest exporter of clothing to the US. Since they cannot afford that 35% rate, the factory owners all stated that they anticipated a decline in orders should the tariffs take effect on August 1.
The managing director of clothing producer Patriot Eco Apparel Ltd., Iqbal Hossain, told Reuters that the fear of tariffs caused Walmart (WMT.N) to halt an order for around a million swim shorts on Thursday.
“As we discussed, please hold all below Spring season orders we are discussing here due to heavy Tariff % imposed for USA imports,” said Faruk Saikat, Classic Fashion’s associate merchandising manager, in an email observed by Reuters that was sent to Hossain and others. Classic Fashion handles orders for stores as a buying agent and supplier.
“As per our management instruction we are holding Bangladesh production for time being and IN case Tariff issues settled then we will continue as we planned here.”
Saikat told Reuters that Classic Fashion itself made the decision to place the hold, not Walmart.
A request for comment from Walmart was not answered.
The United States and Bangladesh are now negotiating a lower tariff in Washington. Trump has resurrected warnings of hefty taxes on many countries in recent days.
According to Mohiuddin Rubel, managing director of the Dhaka-based denim company Denim Expert Ltd, “if the 35% tariff remains for Bangladesh, that will be very tough to sustain, honestly speaking, and there will not be as many orders as we have now.”
Rubel said he anticipates customers will want him to cover a portion of the levy, but it would not be financially feasible. Rubel’s company makes jeans for H&M (HMb.ST), opens new tab, and other retailers. The United States imposed a blanket 10% duty on April 2 that manufacturers have already partially absorbed.
“Only probably the big, big companies can a little bit sustain (tariffs) but not the small and medium companies,” he stated.
Since Trump’s return to the White House, retailers have placed purchases in advance in anticipation of higher tariffs. Levi’s (LEVI.N), a clothing company that imports from Bangladesh, announced on Thursday that it has 60% of the inventory it would require for the remainder of 2025.
According to figures from the U.S. International Trade Commission, U.S. apparel imports from Bangladesh reached $3.38 billion in the first five months of 2025, up 21% from the same period the previous year.
An importer with whom he was negotiating a spring 2026 purchase of trousers for Walmart urged him on Thursday to wait a week before the order would be confirmed because of the tariff risk, according to another owner of a clothing factory in Dhaka.
Hossain stated that even if he needs to lower prices to boost demand, he might seek out additional orders from European customers to make up for lost business if the U.S. 35% tariff is put into effect.
