Some bangladesh Walmart clothing orders pending due to the American tariff threat

London / New York, July 11 (Reuters) – Walmart WMT.N suppliers have delayed or suspended certain orders for clothing manufacturers in Bangladesh, according to three factory owners and correspondence of a supplier seen by Reuters, such as President Donald Trump’s’s’s’s threat of a price of 35% On the textile center disrupts business.

Bangladesh is the third clothing exporter in the United States, and it relies on the clothing sector For 80% of its export income and 10% of its GDP. The factory owners have all said that they expected the orders to drop if the rates of August 1 enter vigue Rate of 35%.

IQBAL HOSSAIN, Managing Director of the Patriot Eco Apparel LTD clothing manufacturer, told Reuters that an order for nearly a million swimming shorts for Walmart was suspended Thursday due to the price threat.

“As we have discussed, please keep all orders for the spring season which we discuss here due to the heavy price% imposed for American imports,” wrote Faruk Saikat, deputy director of merchandising at Classic Fashion, wrote in a Hosseain email and other views by Reuters. Classic Fashion is a supplier and a purchase agent that plays orders for retailers.

“According to our management instructions, we hold the production of Bangladesh for time and, in the event that the tariff problems set, we will continue as we had planned here.”

The catch was not decided by Walmart, Saikat told Reuters, but by classic fashion itself.

Walmart did not respond to a request for comments.

Bangladesh is currently in talks with the United States in Washington to try to negotiate a lower rate. Trump in recent days has Relaunched threats higher samples from many nations.

“If the 35% price remains for Bangladesh, it will be very difficult to maintain, honestly speaking, and there will not be as many orders as we have done now,” Mohiuddin Rubel, CEO at Jeans Fabriner Denim Ltd in Dhaka, said.

Rubel, whose company produces jeans for H&M HMB.ST and other retailers, said it expects customers to ask him to absorb part of the price, but added that this would not be possible financially. Manufacturers have already absorbed part of the 10% coverage rate imposed by the United States on April 2.

“Only large companies can probably support a little (prices) but not small and medium-sized businesses,” he said.

Retailers have had front loaded orders since Trump returned to the White House, anticipating higher prices. Levi.n of the levi.n jeans manufacturer, who matters of Bangladesh, said Thursday It holds 60% of the inventory it needs for the rest of 2025.

Imports of American clothing from Bangladesh totaled $ 3.38 billion in the first five months of 2025, up 21% compared to the annual period, according to data from the US International Trade Commission.

Another Dhaka -based clothing factory owner said that an importer with whom he was negotiating a printemps for spring 2026 for Walmart asked him on Thursday to wait a week before the order was confirmed due to the rate risk.

Hostain said that he could look for more orders from European customers to compensate for lost orders if the 35% American rate is implemented, even if he has to reduce prices to stimulate demand.

(Reuters reports by Helen Reid in London and Siddharth Cavale in New York; edition by David Gaffen and Matthew Lewis)