Walmart suspends purchase orders in Bangladesh

Staff Correspondent | July 13, 2025

U.S.-based multinational retail corporation Walmart has suspended its entire seasonal purchase orders in Bangladesh. The company stated that it was compelled to make this decision due to the 35% additional tariff imposed on Bangladeshi products by U.S. President Donald Trump. This information was revealed in a report published by Reuters.

The report, published yesterday, mentioned that owners of three garment factories in Bangladesh confirmed the information to Reuters.

It is worth noting that Bangladesh is currently the third-largest apparel exporter to the U.S. market. About 80% of the country’s total export earnings come from the garment sector, which accounts for approximately 10% of Bangladesh’s GDP. Until now, the average tariff rate on Bangladeshi products in the U.S. was 15%, but with the new 35% tariff, it will rise to 50%. The new tariff is set to take effect from August 1.

The report further stated that factory owners fear that if Trump’s additional tariff comes into effect from August 1, American buyers may reduce their orders from Bangladesh.

Iqbal Hossain, Managing Director of Patriot Eco Apparel Limited, told Reuters, “Fearing the additional tariff, we had to suspend an order of nearly one million swim pants on Thursday.”

The report also mentioned that Faruq Saikat, an official at a buying agency named Classic Fashion, informed supplier companies of the order suspension through an email.

Referring to the additional tariff in the email, Faruq Saikat said, “As per our discussion, please keep all spring orders on hold.”

He further added, “Following instructions from the management, we are temporarily suspending production in Bangladesh. However, if the tariff issue is resolved, we will proceed according to the previous plan.”

Faruq Saikat also clarified that, “This decision to suspend purchase orders is not from Walmart; it is a decision by Classic Fashion.”

The report added that Reuters sought comments from Walmart on the matter, but the company did not respond.

Meanwhile, after returning to power for a second term, Donald Trump has adopted a tough stance on global trade policy. His indiscriminate imposition of tariffs has sparked tension in the global economy. However, Trump later postponed the implementation of his tariff plan until July 9 to allow countries time to negotiate trade deals with the U.S.

But two days before the July 9 deadline, the Trump administration sent letters to the heads of state and government of 14 countries, including Bangladesh, stating that the additional tariffs would be implemented as scheduled. Despite last-minute negotiations, Bangladesh failed to secure a deal.

In contrast, the United Kingdom and Vietnam reached trade agreements with the United States within the given timeframe. U.S. officials stated that a deal with India is in its final stages.

After the second round of trade talks, the Bangladesh government stated that consensus had been reached on some tariff-related issues with the U.S., but some matters remain unresolved.