CNI News

11 July 2025

 Myanmar's garment industry could be hurt and unemployment rates could rise as the US President Donald Trump sent a notice in which the US would impose a 40 percent trade tariff on Myanmar, U Htay Aung Kyi, an economic analyst, told CNI News.

The SAC would conduct negotiations and discussions with the US after receiving the US President Trump's notification in which the US would impose a 40 percent trade tariff on Myanmar, said Major General Zaw Min Tun, leader of the SAC's Information Team on July 8.

Because the US would impose a 40 percent tariff on Myanmar, not only more economic problems but also more unemployment problems could emerge in Myanmar,  economic analyst U Htay Aung Kyi told CNI News.

Major General Zaw Min Tun

“Myanmar’s biggest export is Garments. It’s currently worth about $800 million. But 40 percent is the highest among all Southeast Asian countries. If taxes are raised, it becomes a tax burden. If taxes are increased, skilled workers may become unemployed, older people may become unemployed, and costs may increase. There are also businesses that export Chinese brands from Myanmar. It's not just an economic problem. It could also lead to other consistent problems," he said.

The trade value between Myanmar and the United States reached 701.9 million US dollars in the 2023-2024 fiscal year and more than 588.3 million US dollars in the 2024-2025 fiscal year, said Major General Zaw Min Tun, leader of the Infrmation Team of the SAC.

The economic sanctions imposed on Myanmar by the United States, Europe, and Western countries are causing the Myanmar economy to decline and unemployment rates to rise. 

Malaysian Prime Minister Anwar Ibrahim

Then, the International Labor Organization (ILO) imposed sanctions on Myanmar, affecting the garment industry, and unemployment is increasing due to the withdrawal of investment in the garment industry.

US President Donald Trump has sent notices saying he will impose 25% trade tariffs on South Korea, Japan and Malaysia, 40% on Laos and Myanmar, 36% on Cambodia and Thailand, 32% on Indonesia and 20% on Vietnam. Malaysian Prime Minister Anwar Ibrahim warned on July 9 ahead of the ASEAN meeting that global trade is being used as a weapon, the AP reported.

The ASEAN Foreign Ministers' Meeting held in Kuala Lumpur, Malaysia on July 9 focused on the issue of the US's trade tariff hike. Six ASEAN members are among the 14 countries where the US's trade tariffs will take effect from August 1.