Myanmar Garment Manufacturers Issue Stark Warning on US Tariffs and Quake Recovery

The Myanmar garment industry is facing significant challenges as new U.S. tariffs take effect on April 9, amid the aftermath of a devastating earthquake and ongoing civil conflict. The Southeast Asian country, which has already been dealing with economic instability and political unrest, now faces additional pressure from a 44% tariff on its exports to the United States. The Myanmar Garment Manufacturers Association (MGMA) has raised concerns about the impact of the tariffs on an industry that employs over 500,000 people, primarily young women.

The new tariffs, introduced under President Donald Trump’s latest trade measures, are expected to substantially affect Myanmar’s economy. The MGMA has warned that the increased trade barrier will significantly impact garment manufacturers already struggling to recover from a series of domestic challenges.These trade restrictions coincide with the aftermath of a powerful earthquake that struck central Myanmar on March 28. According to the military junta, 3,600 people were confirmed dead as of Monday evening, with over 5,000 injured and 160 still missing. Thousands of homes, schools, and monasteries were destroyed, adding to the country's humanitarian crisis.

The earthquake further complicates Myanmar’s fragile economic landscape. Since the military coup in 2021, the nation has been embroiled in a civil war that has fragmented control across the country. The central government, led by the junta, faces resistance from anti-coup militias and long-standing ethnic armed groups, leading to instability in governance, trade, and international relations.

The country has also experienced growing international isolation and a decline in trade activity. According to the Office of the U.S. Trade Representative, bilateral trade between the United States and Myanmar totaled an estimated $734 million in the last year. Myanmar’s exports accounted for $656.5 million of that total, representing a 23.5% decrease compared to the previous year. The decrease reflects growing instability and the international community's hesitance to engage economically with Myanmar’s military-led government.

Adding to the economic burden, the U.S. has significantly cut humanitarian assistance. Trump’s administration suspended refugee admissions for Myanmar citizens shortly after returning to office and implemented substantial cuts to foreign aid budgets. These cuts, reportedly backed by top donor Elon Musk, have directly affected organizations such as the World Food Programme. The WFP recently announced a reduction in assistance to one million people in Myanmar due to critical funding shortfalls.

Humanitarian conditions across the country continue to deteriorate. More than 3.5 million people are currently displaced, and roughly half of the country’s 51 million residents live below the poverty line. The garment sector, one of the last functioning pillars of Myanmar’s formal economy, is now at increased risk due to the new trade policies.

In response, the MGMA has called on the U.S. to reconsider the severity of the tariffs in light of Myanmar’s ongoing crises, emphasizing that businesses are already on the brink of collapse. The association argues that even a slight easing of the tariffs could help protect jobs and provide some level of economic stability as the country attempts to recover from both natural and political disasters.

Conclusion

Myanmar's garment industry, a vital source of employment and export revenue, is bracing for severe disruptions as new U.S. tariffs come into effect. With the country already grappling with the consequences of a deadly earthquake, civil conflict, and dwindling humanitarian aid, the latest trade measures are likely to deepen the economic and social crisis. While calls for leniency have been made by Myanmar’s industry representatives, it remains unclear whether Washington will respond to the appeal in the short term.

Source: Compiled from statements by Myanmar Garment Manufacturers Association