Reuters: Walmart Halts Orders, US Tariff Threat Impacts Bangladesh's Apparel Industry

Reuters, July 11 report, due to the United States' threat to impose a high tariff of 35% on Bangladesh, suppliers of Walmart have postponed or suspended some orders from Bangladeshi garment manufacturers. Bangladesh is the third largest clothing supplier to the United States, with 80% of its export revenue and 10% of its GDP dependent on the apparel industry. Iqbal Hussain, Director General of the Bangladesh Garment Manufacturer's Patriotic Eco Clothing Limited, confirmed to Reuters that a Walmart order for nearly a million swimsuits was suspended on Thursday; Classic Fashion, a Walmart supplier and procurement agent, stated in an internal email that "according to management instructions, we have temporarily stopped production in Bangladesh," and Faruk Sarkar, Assistant Merchandising Manager of the company, emphasized that the suspension decision was made by the company itself, not by Walmart; Mohiuddin Rubel, General Manager of Denim Experts Limited, a denim manufacturer, warned that "if the 35% tariff is implemented, the order volume will not be able to maintain the current level, and small and medium-sized manufacturers will find it difficult to survive," as manufacturers have already been unable to absorb additional costs - the 10% comprehensive tariff imposed by the United States since April 2 has already partially been passed on to the production side; data shows that the total value of U.S. imports of clothing from Bangladesh in the first five months of 2025 reached 3.38 billion U.S. dollars, an increase of 21% year-on-year; currently, Bangladesh is negotiating with the United States in Washington to try to get the tariffs reduced.

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