Trump's tariffs: Some US buyers ask to hold apparel shipments from Bangladesh

Highlights:

• Walmart, Levi's, GAP, ask to pause shipments until 10 April  
• GAP tells suppliers to bear tariff; others demanding discounts  
• BGMEA urges shipping lines to fast-track US-bound containers

Several US apparel buyers have asked Bangladeshi suppliers to temporarily halt shipments until 10 April, as they await clarity on US President Donald Trump's decision to impose a 37% tariff on Bangladeshi goods.

Industry insiders say at least one major US buyer has already instructed its suppliers in Bangladesh to absorb the additional duty burden, while others – including retail giants Walmart, Levi's – are reportedly demanding discounts. 

A Bangladesh Garment Manufacturers and Exporters Association (BGMEA) official told The Business Standard that GAP has also directed its suppliers to pay the extra tariffs.

Meanwhile, with the new tariff expected to take effect on 9 April, the BGMEA's Chattogram office has urged the Bangladesh Shipping Association to fast-track US-bound shipments currently stuck at Chattogram Port and inland container depots.

Exporters fear that missing the deadline could push their products into the higher-duty window, slashing profit margins or triggering cancellations.

"In the next three days, the authorities and shipping lines must ensure these containers are shipped," said former BGMEA Vice President Rakibul Alam Chowdhury.

The trade organisation has issued an open letter to global buyers, calling for patience and solidarity while emphasising the need for continued partnerships to navigate the crisis.

"We fully recognise the pressure this has created at your end," the letter said, appealing buyers not to shift the financial burden to suppliers at this early stage, warning that doing so could "exacerbate the stress" within the sector.

Request to hold shipments

Syed M Tanvir, managing director of Pacific Jeans Ltd, said, "None of our clients have asked us to delay production – we're still shipping as instructed."

Mohiuddin Rubel, former BGMEA director, noted that some buyers – particularly smaller ones – are pushing suppliers to either pay the full tariff or share the burden.  

"It's going to be very difficult for exporters to absorb this. I think we need to wait before making any decisions," he said.

Shovon Islam, managing director of Sparrow Group, anticipates pricing pressure in upcoming negotiations. "Buyers may now ask for revised price tags that reflect the new duty structure."

Meeting with US buyers on 7 April

A leading Bangladeshi exporter to the US, speaking on condition of anonymity, told TBS that there is some confusion regarding the effective date of the new tariffs.

"As per our convention with buyers, we have a meeting on Monday [7 April], and we expect to know the real picture by Tuesday," he added.

Former BGMEA President Faruque Hassan called for strategic negotiations, suggesting that Bangladesh explore trade facilitation options to help ease the tariff burden.  

He also expressed concern that if Bangladesh reduces duties significantly for a single country like the US, it may affect exports to other destinations — especially the EU, where Bangladesh enjoys duty-free market access.

"This decision by the US will hurt both their economy and ours," Hassan said. "Higher duties could fuel inflation in the US, impacting consumer spending and apparel demand — which, in turn, may slow down our export growth."