Myanmar Offers to Negotiate Tariffs with US, Requests Sanctions Relief

Myanmar's leader, Senior Gen. Min Aung Hlaing, has offered to send a high-level tariff negotiation team to the US in response to President Trump's letter. Trump lowered the "reciprocal" tariff rate on goods from Myanmar to 40% from 44%. Hlaing also asked for an easing of economic sanctions against Myanmar in his letter to Trump.

Myanmar's garment industry, already grappling with numerous challenges, is now facing a new set of tariff hurdles following U.S. President Donald Trump's latest tariff announcements. On July 7, Trump sent a formal letter to Myanmar, threatening a 40% tariff on all goods exported to the U.S., effective August 1, 2025 [2]. This tariff rate is a significant increase from the previous 20% average tariff on Myanmar garment imports [1].

The Myanmar Garment Manufacturers Association (MGMA) has warned that the new tariffs will likely dampen trade and further strain the country's already struggling economy. 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 [1]. The sector employs nearly 800,000 workers, and a 40% tariff is expected to drive orders down almost immediately [1].

In response to the tariff threat, Myanmar's leader, Senior Gen. Min Aung Hlaing, has offered to send a high-level tariff negotiation team to the U.S. Hlaing also asked for an easing of economic sanctions against Myanmar in his letter to Trump [1]. However, the effectiveness of these efforts remains uncertain, as Trump's letters have left room for negotiation but emphasized the potential for retaliatory tariff hikes [2].

The U.S. has cited significant trade deficits and non-reciprocal trade relationships as justification for the new tariffs. Trump has offered a path to avoid the duties: if companies from the targeted countries choose to manufacture goods within the U.S., there will be no tariff, and approvals for such moves would be quickly, professionally, and routinely granted [2]. However, the economic nationalism and security rhetoric used by Trump suggest that the primary goal of these tariffs is to rebalance trade relationships, rather than to encourage domestic manufacturing [2].

The garment industry in Myanmar is already facing numerous challenges, including international sanctions following the 2021 military coup, power outages, fuel shortages, and strict foreign currency controls [1]. The new tariffs are expected to exacerbate these issues, potentially leading to job losses and further economic strain.

References:
[1] https://www.business-humanrights.org/en/latest-news/myanmar-garment-bag-shoe-manufacturing-expected-to-suffer-following-40-us-tariff-announcement/
[2] https://www.livemint.com/news/us-news/donald-trump-targets-5-more-countries-with-25-40-tariff-warnings-after-japan-south-korea-11751918492421.html