Tariffs imposed by Trump administration hit Myanmar's garment sector hard

The 40-percent tariffs imposed on Myanmar by the administration of US President Donald Trump are taking a heavy toll on the country’s garment industry, with several factories forced to shut down, workers’ associations report. Since the tariffs went into effect on August 1, orders have dropped sharply, leading to job losses, fewer overtime hours, and factory closures, according to industry groups. In the industrial zones of Yangon’s Hlaing Tharyar and Shwepyithar townships, at least four factories have closed, said Ei, a spokesperson for the Federation of General Workers Myanmar. The first to shut down was Twinkle (Myanmar), a factory that manufactures garments for US-based Callaway Golf and luggage maker Samsonite. Other closures include SDI Manufacture, Wan Xin Myanmar, and Eternal Fashion, Ei added. “We believe these closures are a direct result of Trump’s tariffs,” she said. “In the past, employers would have blamed factors like electrical problems, raw material shortages, or road closures—all significant challenges since the coup—but now the tariffs are a major contributing factor.” Despite having the lowest labour costs in Southeast Asia, Myanmar struggles to attract foreign investment due to Western sanctions and underdeveloped infrastructure. For many companies that had managed to stay afloat, the recent tariff hike may prove to be the breaking point. To counter the effects of the tariffs, some factories that previously catered to the US market are now seeking orders from Japan, South Korea, and the European Union, according to a man with more than 30 years of experience in Myanmar’s garment sector. “We are doing everything we can to keep factories running,” he said. “The closures are real—they are happening. But the factories still operating are managing by sharing small orders among them. They’re surviving, but just barely.” None of the companies that have shut down their factories were available for comment, and garment industry officials also declined to speak with Myanmar Now. Bilateral trade between Myanmar and the US is valued at approximately $600 to $700 million annually, with Myanmar’s exports—mainly garments, shoes, electronics, and agricultural products—accounting for the majority of this figure. Imports of American products are limited. In July, Myanmar’s military junta expressed interest in sending a high-level delegation to the US to negotiate a trade deal, but those talks never materialised. At the time, the junta announced it aimed to negotiate tariffs of 10 to 20 percent on Myanmar goods and 0 to 10 percent on US goods. Dr. Zaw Oo, an advisor to Myanmar’s military regime, warned in late July that a 40-percent tariff on garment products could have a devastating impact, particularly on the many women employed in the sector. Alongside the tariffs, Myanmar is also facing action from the International Labour Organization over violations of agreements related to workers’ rights, such as freedom of association and the elimination of forced labour. Over 700,000 workers are employed in Myanmar’s garment factories, with double that number in related industries. An estimated four times that number of family members depend on their wages, according to the Myanmar Garment Manufacturers Association (MGMA). The MGMA reports that 60 percent of its members’ exports go to European markets, 20 percent to Japan, and 20 percent to other countries.

Tariffs imposed by Trump administration hit Myanmar’s garment sector hard

In the two months since the tariffs were imposed, a number of factories have been closed in Yangon’s industrial zones, sources say

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