Since August 1, when the US imposed a 40 percent tariff on Myanmar exports, garment orders have plummeted and some garment factories in Yangon have closed. At least four garment factories in Yangon’s Shwe Pyi Thar and Hlaing Tharyar townships have closed in the two months since the new tariffs took effect, with some factories cutting jobs and cutting overtime. While some factories that were no longer able to operate in the US market have closed, others have been able to pick up orders from Japan, South Korea and the European Union (EU). Myanmar has one of the lowest wages in Southeast Asia, allowing factories to operate despite the challenges, but Trump’s tariff hike on Myanmar has had a major impact on factories that mainly export to the US market. If the garment industry faces a crisis, it could affect the lives of more than 700,000 workers and their families who depend on the industry.

