Walmart Suppliers Pause Orders from Bangladesh Due to Tariffs

Walmart suppliers in Bangladesh have paused or delayed clothing orders due to President Trump's threat of a 35% tariff on imports from the country. Bangladesh depends on the apparel industry for 80% of its export earnings and 10% of its GDP. Factory owners expect demand to fall if the tariff takes effect on August 1, as they cannot absorb the steep tax. Analysts have a Strong Buy consensus rating on Walmart stock with an average price target of $111.25 per share, implying 17.8% upside potential.

Walmart suppliers in Bangladesh have paused or delayed clothing orders due to President Trump's threat of a 35% tariff on imports from the country. The Bangladesh garment sector, which accounts for 80% of the country's export earnings and 10% of its GDP, is bracing for potential disruptions [1].

Factory owners expect demand to fall if the tariff takes effect on August 1, as they cannot absorb the steep tax. "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 [1].

Retailers have front-loaded orders since Trump returned to the White House, anticipating higher tariffs. Jeans maker Levi's, which imports from Bangladesh, has already stockpiled 60% of the inventory it needs for the rest of 2025 [1].

Bangladesh is currently in talks with the United States in Washington to try to negotiate a lower tariff. However, the threat of higher levies on numerous nations looms large [1].

Analysts have a Strong Buy consensus rating on Walmart stock with an average price target of $111.25 per share, implying 17.8% upside potential [4].

References:
[1] https://www.investing.com/news/stock-market-news/exclusivesome-walmart-garment-orders-from-bangladesh-on-hold-due-to-us-tariff-threat-4132469
[2] https://www.tbsnews.net/economy/rmg/bangladesh-holds-2nd-spot-apparel-export-vietnam-gains-ground-1183371
[3] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3T80Q9:0-some-walmart-garment-orders-from-bangladesh-on-hold-due-to-us-tariff-threat/
[4] https://www.tipranks.com/stocks/wmt/forecast