Bangladesh Garment Sector Faces Uncertainty Amid U.S. Tariff Threats
As tensions around international trade escalate, some Walmart garment orders from Bangladesh have been placed on hold, reflecting the real-world ripple effects of looming U.S. tariffs. This development comes as President Donald Trump’s administration signals a potential 35% tariff on textiles from Bangladesh — a country intricately connected to the global apparel supply chain.
The Stakes for Bangladesh’s Economy and Global Apparel Market
Bangladesh holds the position as the third-largest apparel exporter to the United States, with the garment industry representing a staggering 80% of its export revenue and about 10% of its GDP. This sector is a lifeline for millions of workers and their families. However, according to factory owners and suppliers interviewed by Reuters, the introduction of a 35% tariff scheduled for August 1 would significantly disrupt their operations.
Iqbal Hossain, managing director of Patriot Eco Apparel Ltd, revealed that an order nearly reaching 1 million swim shorts for Walmart was paused due to the tariff uncertainty. Similarly, Faruk Saikat from Classic Fashion, a supplier and buying agent, confirmed that they initiated the hold on Bangladeshi production to avoid the burden of the “heavy tariff percentage” imposed by the U.S.
Industry Voices Highlight the Challenges Ahead
Mohiuddin Rubel, who manages Denim Expert Ltd — a key jeans manufacturer supplying global brands like H&M — voiced serious concerns.
