Myanmar: Factories forced to shut down leading to job losses for workers as a consequence of US tariffs
IndustriALL Global Union
"Tariffs imposed by Trump administration hit Myanmar’s garment sector hard", 1 October 2025
The 40-percent tariffs imposed on Myanmar by the administration of US President Donald Trump are taking a heavy toll on the country’s garment industry, with several factories forced to shut down, workers’ associations report.
Since the tariffs went into effect on August 1, orders have dropped sharply, leading to job losses, fewer overtime hours, and factory closures, according to industry groups.
In the industrial zones of Yangon’s Hlaing Tharyar and Shwepyithar townships, at least four factories have closed, said Ei, a spokesperson for the Federation of General Workers Myanmar.
The first to shut down was Twinkle (Myanmar), a factory that manufactures garments for US-based Callaway Golf and luggage maker Samsonite. Other closures include SDI Manufacture, Wan Xin Myanmar, and Eternal Fashion, Ei added.
“We believe these closures are a direct result of Trump’s tariffs,” she said. “In the past, employers would have blamed factors like electrical problems, raw material shortages, or road closures—all significant challenges since the coup—but now the tariffs are a major contributing factor.”…
To counter the effects of the tariffs, some factories that previously catered to the US market are now seeking orders from Japan, South Korea, and the European Union, according to a man with more than 30 years of experience in Myanmar’s garment sector…
None of the companies that have shut down their factories were available for comment, and garment industry officials also declined to speak …
Alongside the tariffs, Myanmar is also facing action from the International Labour Organization over violations of agreements related to workers’ rights, such as freedom of association and the elimination of forced labour.
Over 700,000 workers are employed in Myanmar’s garment factories, with double that number in related industries. An estimated four times that number of family members depend on their wages, according to the Myanmar Garment Manufacturers Association (MGMA)…