Bangladesh’s apparel sector, a critical pillar of its economy, faces disruption as suppliers to Walmart suspend orders amid looming US tariffs.
Several Walmart garment orders from Bangladesh have been delayed or put on hold by suppliers due to fears over a potential 35% US tariff on imports from the South Asian textile hub. The move reflects growing uncertainty as the US administration under President Donald Trump revives protectionist trade policies.
According to three Bangladeshi factory owners and email correspondence reviewed by Reuters, sourcing partners—rather than Walmart itself—have initiated the pauses, citing financial risks if tariffs are enacted on August 1.
Bangladesh is the third-largest apparel exporter to the US, with garments accounting for approximately 80% of the country’s export revenue and contributing around 10% of its GDP.
While larger firms may be able to absorb higher tariffs temporarily, small and medium-sized enterprises (SMEs) could face serious losses—or closure—if the proposed tariffs go into effect.
Amid the uncertainty, retailers have front-loaded orders, anticipating costlier imports in the second half of 2025. For instance, Levi’s, which sources from Bangladesh, stated it already holds 60% of its required inventory for the rest of the year.
US imports of Bangladeshi garments reached $3.38 billion in the first five months of 2025, marking a 21% year-on-year increase, according to the US International Trade Commission. Meanwhile, negotiations between Bangladesh and the US are ongoing in Washington, with hopes of securing a reduced tariff to stabilize trade relations.
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