Some Walmart Garment Orders From Bangladesh On Hold Due To Us Tariff Threat

LONDON/NEW YORK, July 11 (Reuters) - Suppliers to Walmart WMT.N person delayed aliases put connected clasp immoderate orders from garment manufacturers successful Bangladesh, according to 3 mill owners and correspondence from a supplier seen by Reuters, arsenic U.S. President Donald Trump’s threat of a 35% tariff connected nan textile hub disrupts business.

Bangladesh is nan third-largest exporter of apparel to nan United States, and it relies connected nan garment sector for 80% of its export net and 10% of its GDP. The mill owners each said they expected orders to autumn if nan August 1 tariffs spell into effect, arsenic they are incapable to sorb that 35% rate.

Iqbal Hossain, managing head of garment shaper Patriot Eco Apparel Ltd, told Reuters an bid for astir 1 cardinal aquatics shorts for Walmart was put connected clasp connected Thursday owed to nan tariff threat.

“As we discussed please clasp each beneath Spring play orders we are discussing present owed to dense Tariff % imposed for USA imports,” Faruk Saikat, adjunct merchandising head astatine Classic Fashion, wrote successful an email to Hossain and others seen by Reuters. Classic Fashion is simply a supplier and buying supplier that places orders for retailers.

“As per our guidance instruction we are holding Bangladesh accumulation for clip being and IN lawsuit Tariff issues settled past we will proceed arsenic we planned here.”

The clasp was not decided by Walmart, Saikat told Reuters, but by Classic Fashion itself.

Walmart did not respond to a petition for comment.

Bangladesh is presently successful talks pinch nan United States successful Washington to effort to discuss a little tariff. Trump successful caller days has revived threats of higher levies connected galore nations.

“If nan 35% tariff remains for Bangladesh, that will beryllium very reliable to sustain, honestly speaking, and location will not beryllium arsenic galore orders arsenic we person now,” said Mohiuddin Rubel, managing head astatine jeans shaper Denim Expert Ltd successful Dhaka.

Rubel, whose institution produces jeans for H&M HMb.ST and different retailers, said he expects clients will inquire him to sorb portion of nan tariff, but added this would not beryllium imaginable financially. Manufacturers person already absorbed portion of nan broad 10% tariff imposed by nan U.S. connected April 2.

“Only astir apt nan big, large companies tin a small spot prolong (tariffs) but not nan mini and mean companies,” he said.

Retailers person front-loaded orders since Trump returned to nan White House, anticipating higher tariffs. Jeans shaper Levi’s LEVI.N, which imports from Bangladesh, said connected Thursday it has 60% of nan inventory it needs for nan remainder of 2025.

U.S. clothing imports from Bangladesh totaled $3.38 cardinal successful nan first 5 months of 2025, up 21% from nan year-earlier period, according to U.S. International Trade Commission data.

Another Dhaka-based garment mill proprietor said an importer pinch whom he was negotiating a outpouring 2026 bid of trousers for Walmart asked him connected Thursday to hold a week earlier nan bid would beryllium confirmed owed to nan tariff risk.

Hossain said he whitethorn look for much orders from European clients to dress up for mislaid orders if nan U.S. 35% tariff gets implemented, moreover if he has to trim prices to stimulate demand.

(Reuters reporting by Helen Reid successful London and Siddharth Cavale successful New York; Editing by David Gaffen and Matthew Lewis)