Some Walmart garment orders from Bangladesh on hold due to US tariff threat
LONDON/NEW YORK: Suppliers to Walmart have delayed or put on hold some orders from garment manufacturers in Bangladesh, according to three factory owners and correspondence from a supplier seen by Reuters, as US President Donald Trump's threat of a 35 per cent tariff on the textile hub disrupts business.
Bangladesh is the third-largest exporter of apparel to the United States, and it relies on the garment sector for 80 per cent of its export earnings and ten per cent of its GDP. The factory owners all said they expected orders to fall if the August 1 tariffs go into effect, as they are unable to absorb that 35 per cent rate.
Iqbal Hossain, managing director of garment manufacturer Patriot Eco Apparel Ltd, told Reuters an order for nearly one million swim shorts for Walmart was put on hold on Thursday (July 10) due to the tariff threat.
"As we discussed please hold all below Spring season orders we are discussing here due to heavy Tariff per cent imposed for USA imports," Faruk Saikat, assistant merchandising manager at Classic Fashion, wrote in an email to Hossain and others seen by Reuters. Classic Fashion is a supplier and buying agent that places orders for retailers.
"As per our management instruction we are holding Bangladesh production for time being and IN case Tariff issues settled then we will continue as we planned here."
The hold was not decided by Walmart, Saikat told Reuters, but by Classic Fashion itself.
Walmart did not respond to a request for comment. Bangladesh is currently in talks with the United States in Washington to try to negotiate a lower tariff. Trump in recent days has revived threats of higher levies on numerous nations.
"If the 35 per cent 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.
Rubel, whose company produces jeans for H&M and other retailers, said he expects clients will ask him to absorb part of the tariff, but added this would not be possible financially. Manufacturers have already absorbed part of the blanket ten per cent tariff imposed by the US on April 2.
"Only probably the big, big companies can a little bit sustain (tariffs) but not the small and medium companies," he said. Retailers have front-loaded orders since Trump returned to the White House, anticipating higher tariffs. Jeans maker Levi's, which imports from Bangladesh, said on Thursday it has 60 per cent of the inventory it needs for the rest of 2025.
US clothing imports from Bangladesh totaled US$3.38 billion in the first five months of 2025, up 21 per cent from the year-earlier period, according to US International Trade Commission data.
Another Dhaka-based garment factory owner said an importer with whom he was negotiating a spring 2026 order of trousers for Walmart asked him on Thursday to wait a week before the order would be confirmed due to the tariff risk.
Hossain said he may look for more orders from European clients to make up for lost orders if the US 35 per cent tariff gets implemented, even if he has to cut prices to stimulate demand. - Reuters
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
44 minutes ago
- The Star
In a show of unity against Trump, Brazil and India vow to triple trade flows
As US President Donald Trump revved up his tariff threat against Brics, Brazil and India responded with a show of unity as they vowed to triple bilateral trade during Indian Prime Minister Narendra Modi's state visit to Brasilia on Tuesday. Describing the US dollar as the 'king', Trump on Tuesday claimed that Brics was set up to hurt the US and 'degenerate' the dollar. He added that Brics nations, including India and Brazil, would 'have to pay 10 per cent if they're in Brics'. Cancel anytime. Ad-free. Full access to Web and App. RM 13.90/month RM 9.73 /month Billed as RM 9.73 for the 1st month, RM 13.90 thereafter. RM 12.39/month RM 8.63 /month Billed as RM 103.60 for the 1st year, RM 148 thereafter.
Malay Mail
an hour ago
- Malay Mail
Trump's dealmaker name on the line in high stakes tariff talks
WASHINGTON, July 13 — President Donald Trump set out early in his second term to fulfill a decades-long desire of reshaping US trade with the world, but the main outcomes so far have been discord and uncertainty. The real estate tycoon, who has staked his reputation on being a consummate dealmaker, embarked on an aggressive strategy of punitive tariffs that his administration predicted could bring '90 deals in 90 days.' The score so far? Two. Three if you count a temporary de-escalation agreement with China. The 90-day deadline was due on July 9, with dozens of economies including the European Union, India and Japan facing tariff hikes without a deal. But days before it arrived, Trump issued a delay to August 1. It was his second extension since unveiling the tariffs in April—reigniting the 'Taco Theory' that has gained traction among some Wall Street traders. The acronym coined by a Financial Times writer stands for 'Trump Always Chickens Out,' highlighting the president's inclination to roll back policies if markets turn sour. Treasury Secretary Scott Bessent, part of Trump's multi-leader trade team, has reportedly been a key advocate for the pauses. But the label has irked Trump and he insisted Tuesday that the deadline had always been in August. 'I didn't make a change. A clarification, maybe,' Trump said at a cabinet meeting. This week, he published more than 20 letters dictating tariff rates to world leaders including in Japan, South Korea and Indonesia. 'We invite you to participate in the extraordinary Economy of the United States, the Number One Market in the World, by far,' Trump wrote. He also issued letters to the EU, Canada, Mexico and Brazil—although Brazil was not previously targeted by the steeper 'reciprocal' tariffs and Canada and Mexico face a separate tariff regime. The documents 'appear to be Trump's way of combatting the Taco label,' said Inu Manak, a fellow for trade policy at the Council on Foreign Relations. 'He wants to show that he's not just kicking the can down the road on the deadline, but that he means business,' she told AFP. 'He's likely frustrated that there isn't a parade of deals coming in.' 'Politically complicated' 'The shift in his rhetoric from 'there is no cost—the foreigners pay the tariffs' to 'there is a short term cost, but there will be a long term gain' has put him in a more politically complicated position,' said William Reinsch, senior adviser at the Centre for Strategic and International Studies. Trump has repeatedly claimed that foreign countries foot the bill for tariffs, although the reality is more complicated with US companies generally paying them. 'In the public's mind, the tariffs are the pain, and the agreements will be the gain,' said Reinsch, a former US commerce official. He warned that without trade agreements, Americans could conclude Trump's strategy was flawed and deem his tactics a failure. While the 90-deal goal was probably unrealistic, Reinsch said, 'it's clear that three (UK, China, Vietnam) with only one actual text made public (UK) is too small.' Deflecting attention Meanwhile, Trump has announced a 50 per cent levy on copper imports starting August 1. Commerce Secretary Howard Lutnick said officials would also conclude investigations into semiconductors and pharmaceuticals—which could lead to tariffs—at month-end. 'That timing is not coincidental—it lines up with the new deadline of August 1, adding more pressure and deflecting attention from any lack of deals that get made in that time frame,' Manak said. Analysts believe Trump's supporters will likely not pay much attention to trade talks unless the tariffs fuel inflation. 'Trade policy is not top-of-mind for the average voter,' said Emily Benson, head of strategy at Minerva Technology Futures. She expects the Trump administration's focus on boosting US manufacturing and reinvigorating the defense industrial base means it could be willing to bear some political heat to achieve those objectives. But it's a delicate balance. Voters will likely pay more attention if Trump follows through on his August tariff threats, Manak said. 'And we could see a negative market reaction as well, which would not go unnoticed.' — AFP
The Star
2 hours ago
- The Star
Trump admin increasing scrutiny of Chinese, other foreign farmland ownership in US
US President Donald Trump's administration is expanding scrutiny of Chinese and other foreign ownership of American farmland and starting to cancel agricultural contracts with entities from 'countries of concern' amid apprehension over the national security risks of such foreign involvement. As part of a new seven-part National Farm Security Action Plan, Agriculture Secretary Brooke Rollins told reporters on Tuesday that 'swift legislative and executive action' would be taken at 'every level of government' to 'ban the purchase of American farmland by Chinese nationals and other foreign adversaries'. The Agriculture Department will also target research and innovation programmes with foreign countries 'that do not have our best interests in mind'. Rollins said that the department has already cancelled seven active agreements with entities from countries of concern – a designation that includes China, Iran, Russia, North Korea – and will continue to cancel them, along with removing foreign citizens from federal contracts. 'American agriculture is not just about feeding our families, but about protecting our nation and standing up to foreign adversaries who are buying our farmland, stealing our research and creating dangerous vulnerabilities in the very systems that sustain us,' Rollins said, citing China as a 'hostile regime' that sees the American way of life as a 'profound and existential threat'. The Agriculture Department, according to Rollins, is coordinating with the White House; the departments of Treasury, Defence, Homeland Security, and Justice; and state governors, agriculture commissioners, and local, tribal, and territorial governments to carry out the plan. Flanked by Defence Secretary Pete Hegseth, White House trade counsellor Peter Navarro, Attorney General Pam Bondi, Homeland Security Secretary Kristi Noem, and several Republican governors and lawmakers, Rollins added that she has officially joined the Treasury-led Committee on Foreign Investment in the United States as of Tuesday. CFIUS, as the inter-agency committee is commonly known, is responsible for reviewing transactions involving foreign investment in the US. Tuesday's announcement comes as US-China tensions have cascaded through local and state politics across the US in recent years, sparking alarm about Chinese investment and other involvement in the American agricultural sector. According to the New York-based Committee of 100, a group of prominent Chinese-Americans, 45 bills restricting foreign property ownership, some of them explicitly targeting Chinese citizens, were under consideration in 14 US states as of June 25. Last month, Texas Governor Greg Abbott, a Republican, signed legislation to restrict Chinese nationals from buying property in his state. However, the potential trade-offs of banning Chinese purchases of farmland have also been acknowledged at both national and local levels. A Republican-led legal effort to restrict Chinese entities from owning land failed in Arizona last month after a veto by the state's governor, Democrat Katie Hobbs, who argued that the bill would be 'ineffective at counter-espionage' and open the door to arbitrary enforcement. Critics of efforts to limit Chinese land investment argue that they could unfairly subject Chinese-Americans and Asian-Americans to extra scrutiny. They also point to the relatively small amount of US land owned by Chinese entities and argue that there has been little evidence of Beijing's interest in acquiring US farmland. According to a 2023 US Department of Agriculture report, Chinese individuals or businesses own about 277,336 acres (112,234 hectares) of US land – less than 1 per cent of total foreign-held acreage – with none directly registered to the Chinese government. Chinese ownership of land has come into the national spotlight several times in recent years. In 2023, a US$700 million corn mill project in Grand Forks, North Dakota, was scrapped after opposition over its Chinese owner and proximity to a military base. In a similar development that year, agrochemical and seed company Syngenta AG was ordered to divest 160 acres of farmland (65 hectares) in Arkansas within two years. That enforcement action against Syngenta, which was acquired by China National Chemical Corporation, was the first taken under legislation signed by Republican Governor Sarah Huckabee Sanders restricting foreign entities from owning agricultural land in the state. Sanders was one of the governors present at Tuesday's event. In her remarks, she emphasised the need for a federal effort to curb land purchases by US 'enemies', noting that while states have led the way, they could not address the issue alone. Tuesday's National Farm Security Action Plan sets up a new portal for reporting foreign farm investments and raises the fine for late and false filings. Rollins also said to expect an executive order on foreign land purchases from the White House 'very soon'. Responding to Rollins' remarks, the Chinese embassy in Washington said that the US was 'overstretching' the concept of national security. 'Over the years, Chinese companies' investment in the United States has made important contributions to local jobs and growth,' said embassy spokesperson Liu Pengyu. 'Politicising economic and trade investment issues violates the principles of market economy and international trade norms, only to undercut international confidence in the US market environment.' - SOUTH CHINA MORNING POST
