Some garment orders from Bangladesh for Walmart are currently on hold amid escalating US tariff threats, according to factory owners and supplier correspondence. The US administration has proposed a 35% tariff on textile imports from Bangladesh, the third-largest exporter of apparel to the US, which accounts for 80% of its export earnings and 10% of its GDP.
Factory owners in Bangladesh have expressed concerns that if the tariffs are enacted on 1st August, order volumes will decline sharply, as many manufacturers are unable to absorb the increased costs. Iqbal Hossain, managing director of Patriot Eco Apparel Ltd, revealed that an order for nearly one million swim shorts destined for Walmart was paused due to the tariff threat.
A communication from Classic Fashion, a supplier and buying agent, indicated that the hold on production was a management decision, not directly from Walmart. “As per our management instruction, we are holding Bangladesh production for the time being, and if tariff issues are resolved, we will proceed as planned,” said Faruk Saikat, assistant merchandising manager at Classic Fashion.
Industry leaders warn that sustained tariffs could significantly reduce order volumes. Mohiuddin Rubel, managing director of Denim Expert Ltd, explained that absorbing such tariffs would be financially unfeasible for smaller and medium-sized companies. Larger firms may manage better, but overall, order outlooks remain uncertain.
Despite these disruptions, Bangladesh continues to negotiate with the US Government in Washington to lower tariffs. Meanwhile, retailers like Levi’s have secured substantial inventories for the remainder of 2025, anticipating possible import hurdles.
Some factory owners are considering shifting focus to European clients to compensate for potential losses from US markets, even if it means lowering prices to attract orders amid tariff uncertainties.
