Bangladesh’s garment sector, a key supplier to Walmart and major US retailers, is facing disruptions as suppliers delay or halt orders due to the threat of a 35% tariff on exports to the United States. Factory owners expect a sharp decline in orders if the tariff takes effect, citing an inability to absorb such costs. Some manufacturers are seeking alternative markets, while negotiations between Bangladesh and the US continue.
Key Takeaways
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Walmart suppliers have paused or delayed orders from Bangladesh as a 35% US tariff looms.
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Factory owners warn that small and medium manufacturers will be hardest hit, with potential job losses and reduced exports.
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Bangladesh is trying to negotiate a lower tariff, but uncertainty is already shifting business strategies and order volumes.
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