Shoppers astatine the Walmart Supercenter successful Burbank during Walmart's multi-week Annual Deals Shopping Event successful Burbank Thursday, Nov. 21, 2024.
Allen J. Schaben | Los Angeles Times | Getty Images
Suppliers to Walmart person delayed oregon enactment 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 the textile hub disrupts business.
Bangladesh is the third-largest exporter of apparel to the United States, and it relies connected the garment assemblage for 80% of its export net and 10% of its GDP. The mill owners each said they expected orders to autumn if the August 1 tariffs spell into effect, arsenic they are incapable to sorb that 35% rate.
Iqbal Hossain, managing manager of garment shaper Patriot Eco Apparel Ltd, told Reuters an bid for astir 1 cardinal aquatics shorts for Walmart was enactment connected clasp connected Thursday owed to the tariff threat.
"As we discussed delight clasp each beneath Spring play orders we are discussing present owed to dense Tariff % imposed for USA imports," Faruk Saikat, adjunct merchandising manager astatine Classic Fashion, wrote successful an email to Hossain and others seen by Reuters. Classic Fashion is simply a supplier and buying cause that places orders for retailers.
"As per our absorption acquisition we are holding Bangladesh accumulation for clip being and IN lawsuit Tariff issues settled past we volition 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 with the United States successful Washington to effort to negociate a little tariff. Trump successful caller days has revived threats of higher levies connected galore nations.
"If the 35% tariff remains for Bangladesh, that volition beryllium precise pugnacious to sustain, honestly speaking, and determination volition not beryllium arsenic galore orders arsenic we person now," said Mohiuddin Rubel, managing manager astatine jeans shaper Denim Expert Ltd successful Dhaka.
Rubel, whose institution produces jeans for H&M and different retailers, said helium expects clients volition inquire him to sorb portion of the tariff, but added this would not beryllium imaginable financially. Manufacturers person already absorbed portion of the broad 10% tariff imposed by the U.S. successful April.
"Only astir apt the big, large companies tin a small spot prolong (tariffs) but not the tiny and mean companies," helium said.
Retailers person front-loaded orders since Trump returned to the White House, anticipating higher tariffs. Jeans shaper Levi's, which imports from Bangladesh, said connected Thursday it has 60% of the inventory it needs for the remainder of 2025.
U.S. covering imports from Bangladesh totaled $3.38 cardinal successful the archetypal 5 months of 2025, up 21% from the year-earlier period, according to U.S. International Trade Commission data.
Another Dhaka-based garment mill proprietor said an importer with whom helium was negotiating a outpouring 2026 bid of trousers for Walmart asked him connected Thursday to hold a week earlier the bid would beryllium confirmed owed to the tariff risk.
Hossain said helium whitethorn look for much orders from European clients to marque up for mislaid orders if the U.S. 35% tariff gets implemented, adjacent if helium has to chopped prices to stimulate demand.
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