US tariff hike could hurt Myanmar's garment industry
CNI News
15 April 2025
Myanmar's exports to the US could suffer, especially those from the garment industry, as the US President Donald Trump imposes a 44 percent tariff on imports from Myanmar, economists told CNI News.
On April 2, US President Donald Trump increased tariffs on goods imported into the US from various countries around the world, including Myanmar.
The US has increased tariffs as existing investments in Myanmar are struggling due to the earthquake.
It was difficult to expect new investments, Ko Zaw Min Naing, an agricultural and economic advisor, told CNI News.
"Myanmar is included in the countries that Trump has increased trade tariffs on. I hear that the garment industry is going to suffer. Some brands are sewn in Myanmar. They have to be sewn and then shipped back. So if the tariffs are increased, the viability of garment factories here is going to be a problem. Because of the Trade War, the existing investments in Myanmar are struggling. It's not easy to get more investment. When the SAC chairman went to Russia and Belarus, they signed agreements. I can't say whether investments in the energy sector will enter Myanmar. It's very difficult to expect other investments. It may be because of the trade war. Another thing is related to infrastructure. Even in areas that were hit by the earthquake, including Mandalay, electricity has not been restored to normal. In a situation like this, it is less likely that foreign investments will enter the country. Because charges are too high due to the trade war, existing investments are struggling." said Ko Zaw Min Naing.
While seeing the port where goods are released
The White House press conference said that the tax increase is an effort to ensure fairness in trade with the United States and to prevent excessive profits.
The United States has increased tariffs on more than 180 countries, including Myanmar, which is the highest tariff increase in decades, according to international reports.
Banking expert U Htay Aung Kyi told CNI News that the increase in tariffs will force US importers to choose countries with lower tariffs, depending on the product.
While rescuing those affected by the earthquake in Myanmar
"Tariffs are money that American importers have to pay, so they will raise prices. After all, it will be the American consumers who suffer. American importers will choose the products from the countries with lower import tariffs." he said.
The World Bank's Myanmar Economic Monitor report, released on December 11, predicted that the Myanmar economy would shrink by another 1 percent by March 2025 due to the spread of armed conflicts, natural disasters, and shortages of basic goods. However, the report does not take into account the impact on the country's economy from the damage caused by the recent earthquake.
