🚨 Exclusive: Walmart Garment Orders from Bangladesh Put on Hold Amid Looming U.S. Tariff Shock ⚠️

July 2025 — Bangladesh’s garment sector, the lifeblood of its economy, has been hit with sudden turbulence as some suppliers to global retail giant Walmart have frozen new orders due to an impending 35% import tariff threatened by the United States.

This pause has sent shockwaves through the industry, with major factories halting production and exporters scrambling to reassess their business strategies. For a country where apparel exports account for nearly 80% of total export earnings and 10% of GDP, this development is nothing short of a crisis.

 

🧵 How the Storm Began

The trouble began when buying agents working for Walmart, including major players like Classic Fashion, instructed Bangladeshi manufacturers to stop work on upcoming shipments. One of the most notable halted consignments was a massive order of nearly 1 million swim shorts, scheduled for Walmart’s spring collection.

Industry insiders confirm the pause is a preemptive move — buyers fear that if the U.S. imposes the steep 35% duty on Bangladeshi garments from August 1, prices will become uncompetitive, potentially leading to unsold stock and heavy financial losses.

 

⚠️ Why This Tariff is a Game Changer

If enforced, the 35% tariff could completely reshape the trade landscape between Bangladesh and the United States.
Here’s why it’s a big deal:

• Price Shock: The extra duty would push prices of Bangladeshi apparel far above those from competitors like Vietnam, Cambodia, and Indonesia.
• Profit Squeeze: Margins are already razor-thin in the garment industry. Buyers, especially fast-fashion retailers, demand low prices, leaving little room to absorb additional costs.
• Order Flight Risk: U.S. retailers may shift sourcing to other countries with no or lower tariffs, reducing Bangladesh’s share of the market.

 

🗣 What Industry Leaders Are Saying

Iqbal Hossain, a key supplier for Walmart, confirmed that his company was told to halt shipments immediately. He expressed deep concern about how factories would manage overhead costs if orders continue to be frozen.

Mohiuddin Rubel, a denim exporter, warned:

“If the 35% tariff stays, the number of orders will drop sharply. Some big exporters might take partial losses to keep clients, but for smaller suppliers, it’s simply not sustainable.”

Md. Fazlul Hoque, a knitwear manufacturer, pointed out that smaller factories are especially vulnerable:

“The industry is already under pricing pressure from buyers. Adding a heavy tariff is like pouring salt on a wound.”

 

📦 The Order Cycle Disruption

The situation is even more complicated because many U.S. buyers front-loaded their orders earlier in the year in anticipation of possible trade disruptions. Some retailers, like Levi’s, already have more than half their annual inventory ready.

Now, with warehouses full and tariffs looming, they have little incentive to confirm new orders — especially for the Spring 2026 season. Several agents have delayed order confirmations, leaving Bangladeshi factories in limbo.

 

🌍 Bangladesh’s Export Dependence

The Ready-Made Garments (RMG) sector is the crown jewel of Bangladesh’s economy:

• Contributes over 80% of total export earnings
• Employs more than 4 million workers, most of them women
• Supplies top brands and retailers worldwide, including in the U.S., Europe, and Asia

A sudden drop in orders from a retail giant like Walmart could ripple across the entire supply chain — affecting yarn suppliers, dyeing units, printing houses, logistics providers, and port operations.

 

🏗️ Potential Economic Fallout

If the U.S. tariff takes effect:

• Factory Closures: Smaller units unable to diversify or find new buyers could shut down.
• Mass Layoffs: Thousands of workers, particularly women in rural areas, could lose their jobs.
• Foreign Exchange Losses: Reduced exports would weaken Bangladesh’s foreign reserves, impacting currency stability.
• Competitor Advantage: Countries like Vietnam, Indonesia, and India could snatch up lost U.S. orders.

 

🔎 The Diplomatic Battle

Bangladeshi trade officials are already in urgent talks with U.S. authorities, trying to negotiate a lower tariff rate or exemptions for certain product categories. However, the clock is ticking, and no final decision has been made.

In the meantime, exporters are pivoting towards European markets to cushion the blow, though this often means cutting prices to remain competitive. Some are also exploring opportunities in emerging markets like Latin America and the Middle East.

 

🔮 What’s Next for Bangladesh’s Garment Industry?

The current crisis highlights the need for:

• Market Diversification: Reducing over-dependence on the U.S. by tapping into new regions.
• Value-Added Products: Moving up the value chain to produce high-margin goods that can absorb tariff impacts.
• Trade Agreements: Negotiating free trade deals to ensure long-term access to major markets.
• Sustainability & Innovation: Investing in eco-friendly manufacturing and advanced textile technology to stay attractive to global buyers.

 

🎯 Conclusion: A Defining Moment for Bangladesh’s Export Future

The Walmart order freeze serves as a wake-up call for Bangladesh’s RMG sector. It’s a stark reminder that global trade is highly vulnerable to policy changes and geopolitical shifts.

If the 35% tariff becomes reality, the country could face one of its toughest export challenges in recent history. But with strategic adaptation, aggressive market diversification, and continued focus on quality and sustainability, Bangladesh has the potential to weather the storm and emerge stronger.

For now, all eyes are on Washington — and the clock is ticking. ⏳