Trump’s 35% Tariff Threat Ripples Through Walmart’s Bangladesh Supply Chain: Report

Some of Walmart's (WMT) suppliers have put on hold orders from garment manufacturers in Bangladesh in response to U.S. tariffs, according to a Reuters report.

U.S. President Donald Trump has threatened to impose a 35% tariff rate on the South Asian nation, which is a key textile hub. 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 GDP.

Factory owners in Bangladesh told Reuters that orders would fall if the Aug. 1 rate hike goes into effect.

Garment manufacturer Patriot Eco Apparel said an order for nearly 1 million swim shorts for Walmart was put on hold last week due to the tariff threat. This is according to instructions from its buying agent, Classic Fashion, which wrote in a letter to Patriot: "We are holding Bangladesh production for time being and IN case Tariff issues settled then we will continue as we planned here."

On Stocktwits, the retail sentiment for Walmart was ‘bullish.’ WMT shares are up nearly 5% year-to-date.

"If the 35% tariff remains for Bangladesh, that will be very tough to sustain, honestly speaking, and there will not be as many orders as we have now," said Mohiuddin Rubel, managing director at jeans manufacturer Denim Expert Ltd in Dhaka. Denim Expert produced jeans for H&M and other brands.

Another unnamed Dhaka-based garment factory owner said an importer with whom he was negotiating a spring 2026 order of trousers for Walmart asked him to wait a week before the order would be confirmed.

Bangladesh is currently in talks with the U.S. in Washington to try to negotiate a lower tariff, even as Trump has sent out tariff letters to several nations offering to renegotiate before the start of August.

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