Some Bangladesh garment orders of Walmart on hold due to US tariff

Suppliers to Walmart have delayed or put on hold some orders from garment manufacturers in Bangladesh, according to three factory owners and correspondence from a supplier seen by Reuters, as US President Donald J. Trump’s threat of a 35% tariff on the textile hub disrupts business.

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Bangladesh is the third-largest exporter of apparel to the United States, and it relies on the garment sector for 80% of its export earnings and 10% of its gross domestic product. The factory owners all said they expected orders to fall if the Aug. 1 tariffs go into effect, as they are unable to absorb that 35% rate.

Iqbal Hossain, managing director of garment manufacturer Patriot Eco Apparel Ltd, told Reuters an order for nearly 1 million swim shorts for Walmart was put on hold on Thursday due to the tariff threat.