Latest news with #ClassicFashion
The Star
9 hours ago
- Business
- The Star
Some Walmart garment orders from Bangladesh on hold due to US tariff threat
FILE PHOTO: A Walmart store is shown in Oceanside, California, U.S., May 15, 2025. 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 due to the tariff risk. - Reuters 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
Yomiuri Shimbun
15 hours ago
- Business
- Yomiuri Shimbun
Some Walmart Garment Orders from Bangladesh on Hold Due to US Sariff Threat
LONDON/NEW YORK, July 11 (Reuters) – 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 U.S. President Donald Trump's threat of a 35% 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% of its export earnings and 10% 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% rate. Iqbal Hossain, managing director of garment manufacturer Patriot Eco Apparel Ltd, told Reuters an order for nearly 1 million swim shorts for Walmart was put on hold on Thursday due to the tariff threat. 'As we discussed please hold all below Spring season orders we are discussing here due to heavy Tariff % 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% 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 10% tariff imposed by the U.S. 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% of the inventory it needs for the rest of 2025. U.S. clothing imports from Bangladesh totaled $3.38 billion in the first five months of 2025, up 21% from the year-earlier period, according to U.S. 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 U.S. 35% tariff gets implemented, even if he has to cut prices to stimulate demand.
Business Insider
15 hours ago
- Business
- Business Insider
Walmart (WMT) Suppliers Are Pausing Clothing Orders from Bangladesh due to Tariffs
Some suppliers of retail giant Walmart (WMT) have paused or delayed orders from clothing factories in Bangladesh because of President Trump's threat to place a 35% tariff on imports from the country. According to Reuters, which cited three factory owners and a supplier's email, the uncertainty is already affecting business. Bangladesh, which depends on the apparel industry for 80% of its export earnings and 10% of its GDP, could see a sharp drop in U.S. orders if the tariff takes effect on August 1. Factory owners say they simply can't absorb such a steep tax and expect demand to fall as a result. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. One major example involves an order of nearly one million swim shorts for Walmart, which was put on hold on July 11, according to Iqbal Hossain, head of Patriot Eco Apparel Ltd. In an email to Hossain and others, a manager from Classic Fashion—an agent that places orders for big retailers—wrote that all spring season orders from Bangladesh were being paused due to the potential tariff. The manager also clarified that this decision came from Classic Fashion's leadership, not Walmart directly. Meanwhile, Bangladesh is holding discussions in Washington to try to reduce the proposed tariff. Factory owner Mohiuddin Rubel, who makes jeans for brands like H&M (DE:HMSB), said that if the 35% tariff goes into effect, his clients may pressure him to absorb some of the cost, which he says is financially impossible, especially after already handling the 10% blanket tariff added in April. Therefore, Hossain stated that he might shift his focus to Europe to make up for lost U.S. business, even if it means lowering prices. Is WMT Stock a Good Buy? Turning to Wall Street, analysts have a Strong Buy consensus rating on WMT stock based on 29 Buys assigned in the past three months, as indicated by the graphic below. Furthermore, the average WMT price target of $111.25 per share implies 17.8% upside potential.
NBC News
19 hours ago
- Business
- NBC News
Some Walmart garment orders from Bangladesh on hold due to US tariff threat
LONDON/NEW YORK, July 11 (Reuters) - Suppliers to Walmart WMT.N 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 U.S. President Donald Trump's threat of a 35% 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% of its export earnings and 10% 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% rate. Iqbal Hossain, managing director of garment manufacturer Patriot Eco Apparel Ltd, told Reuters an order for nearly 1 million swim shorts for Walmart was put on hold on Thursday due to the tariff threat. 'As we discussed please hold all below Spring season orders we are discussing here due to heavy Tariff % 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% 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 10% tariff imposed by the U.S. 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 LEVI.N, which imports from Bangladesh, said on Thursday it has 60% of the inventory it needs for the rest of 2025. U.S. clothing imports from Bangladesh totaled $3.38 billion in the first five months of 2025, up 21% from the year-earlier period, according to U.S. 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 U.S. 35% tariff gets implemented, even if he has to cut prices to stimulate demand.
CTV News
a day ago
- Business
- CTV News
Some Walmart garment orders from Bangladesh on hold due to U.S. 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 U.S. 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 10 per cent of its GDP. The factory owners all said they expected orders to fall if the Aug. 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 1 million swim shorts for Walmart was put on hold on Thursday 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 10 per cent tariff imposed by the U.S. 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 LEVI.N, which imports from Bangladesh, said on Thursday it has 60 per cent of the inventory it needs for the rest of 2025. U.S. clothing imports from Bangladesh totaled $3.38 billion in the first five months of 2025, up 21 per cent from the year-earlier period, according to U.S. 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 U.S. 35 per cent tariff gets implemented, even if he has to cut prices to stimulate demand. (Reporting by Helen Reid in London and Siddharth Cavale in New York; Editing by David Gaffen and Matthew Lewis)
