Myanmar: Bag factory shuts down following US tariff hike
"Samsonite Bag Factory in Myanmar Shuts Down Over Trump Tariffs", 29 August 2025
A major factory in Yangon’s Shwepyithar Industrial Zone that produced travel bags and apparel for American brands like Samsonite and Callaway Golf has permanently shut down after a U.S. tariff hike took effect on Aug. 1...
Twinkle (Myanmar) informed its workforce that the 40 percent tariff imposed by the U.S. on imports from Myanmar rendered continued operations financially untenable...
“It has been four days since the factory was closed,” a former worker said. “We have received compensation.”
Staff confirmed they were given one month’s salary as compensation, but many are upset that they have lost their jobs...
The U.S. is currently the fourth-largest export market for Myanmar’s “cut-make-pack” (CMP) industries, which include garment, bag, and shoe manufacturing...
The country’s CMP sector is already grappling with numerous challenges, including international sanctions following the 2021 military coup, power outages, fuel shortages, and strict foreign currency controls that require export earnings to be converted at a fixed rate way below the market rate.
Prior to U.S. President Donald Trump’s decision, the tariff on Myanmar’s garment exports to the U.S. was around 20 percent...
The company has not issued any formal public statement. Office staff confirmed the shutdown on social media but declined to respond to inquiries from The Irrawaddy.