Suppliers to Walmart, opens new tab have delayed or put on hold some orders from garment manufacturers in Bangladesh, according to three factory owners and correspondence from a supplier seen by Reuters, as US President Donald Trump's threat of a 35 per cent tariff on the textile hub disrupts business.

Bangladesh is the third-largest exporter of apparel to the United States, and it relies on the garment sector for 80 per cent of its export earnings and 10 per cent of its GDP. The factory owners all said they expected orders to fall if the tariffs go into effect on 1 August, as they are unable to absorb that 35 per cent rate.

Iqbal Hossain, managing director of garment manufacturer Patriot Eco Apparel Ltd, told Reuters an order for nearly 1 million swim shorts for Walmart (WMT.N), opens new tab was put on hold on Thursday due to the tariff threat.

"As we discussed please hold all below Spring season orders we are discussing here due to heavy Tariff imposed for USA imports," Faruk Saikat, assistant merchandising manager at Classic Fashion, wrote in an email to Hossain and others seen by Reuters. Classic Fashion is a supplier and buying agent that places orders for retailers.