Several garment orders from Bangladesh meant for Walmart have been delayed or suspended due to the looming threat of a 35 percent US tariff. The move has sparked serious concern among Bangladeshi factory owners who fear a sharp drop in future orders if the proposed tariffs are enforced.
Bangladesh is one of the top garment exporters to the United States, with the sector contributing significantly to its economy. Factory owners say absorbing such a steep tariff is financially unviable, particularly for small and medium manufacturers.
Iqbal Hossain, managing director of Patriot Eco Apparel, confirmed that an order for nearly one million swim shorts has been paused. He cited a message from Classic Fashion, a major supplier and buying agent for Walmart, instructing a hold on production while tariff issues remain unresolved. Classic Fashion clarified that the decision to halt production was made independently, not by Walmart itself.
Manufacturers are already struggling under a previous 10 percent blanket tariff imposed earlier this year. Now, with the new rate possibly coming into effect, many anticipate reduced orders and shrinking profit margins. Mohiuddin Rubel, managing director of Denim Expert, said absorbing even a portion of the new tariff would be impossible for most businesses.
While larger companies may weather the storm, smaller factories are especially vulnerable. Some businesses are now exploring alternative markets in Europe to offset potential losses, even if it means cutting prices.
With negotiations underway between Bangladesh and the United States, factory owners and suppliers remain in limbo, hoping for a resolution that protects one of the country’s most vital industries.
