DHAKA/LONDON/NEW YORK – Several garment orders destined for Walmart from Bangladeshi suppliers have been delayed or paused due to U.S. President Donald Trump’s threat to impose a 35% tariff on textile imports, causing fresh disruptions in one of the world’s top apparel exporting nations.
According to multiple factory owners and internal communications seen by Reuters, some Walmart-linked orders are currently on hold as suppliers brace for the potential fallout. Bangladesh, which earns around 80% of its export revenue from garments, may face severe impacts if the proposed tariffs take effect on August 1.
Iqbal Hossain, Managing Director of Patriot Eco Apparel Ltd, said an order for nearly 1 million swim shorts was halted on Thursday. In an email viewed by Reuters, a representative from Classic Fashion, a buying agent for major retailers, instructed factories to pause spring production plans, citing tariff concerns. The decision was made by the agent, not Walmart directly.
Mohiuddin Rubel, head of Denim Expert Ltd, which supplies global brands like H&M, warned that small and mid-sized manufacturers won’t survive if tariffs are enforced. “Big companies might cope, but the rest of us can’t absorb 35%,” he said. His company is already absorbing part of an earlier 10% U.S. tariff introduced in April.
As of May 2025, U.S. clothing imports from Bangladesh totaled $3.38 billion—a 21% increase year-over-year—highlighting the stakes for the country’s economy.
Bangladeshi officials are currently in Washington, D.C., attempting to negotiate reduced tariffs. If talks fail, some manufacturers are considering pivoting to European markets, even if it means slashing prices to stay competitive.
The uncertainty has already affected new orders. Another Dhaka-based factory owner revealed that a Walmart importer postponed confirming a 2026 spring order due to the looming tariff decision.
Meanwhile, U.S. retailers, anticipating increased costs, have front-loaded imports. Levi Strauss, which sources from Bangladesh, said it has already secured 60% of its 2025 inventory.
