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July 10, 2025

U.S. Imposes 40% Tariff on Myanmar

A-Garment-factory-July-925-feat
Workers at a garment factory in Yangon / The Irrawaddy — https://www.irrawaddy.com/business/trumps-tariffs-to-hit-myanmars-garment-manufacturers-hard.html
July 10, 2025

On July 7, President Trump announced a 40% tariff on imports from Myanmar, effective August 1, 2025, marking a slight reduction from an earlier proposed 44% rate. This will be especially detrimental to Myanmar’s garment industry, for which the US market is the fourth-most export recipient. Notably, President Trump’s letter directly engages “His Excellency Min Aung Hlaing”, the “Chairman of the [military-led] State Administrative Council” (SAC). This may be interpreted as a rare signal of de facto U.S. recognition of the SAC as Myanmar’s governing authority.
 

In response, SAC Chairman Senior General Min Aung Hlaing issued a formal letter on July 9 proposing reciprocal cuts: 10 - 20% for Myanmar’s exports and 0 - 10% for U.S. goods. The letter offers to send a “high-level negotiation team” if necessary and urges the lifting of U.S. economic sanctions. Further, the SAC attempts to justify its seizure of power by drawing a direct parallel to the 2020 U.S. election, alleging similar electoral fraud and irregularities in Myanmar’s 2020 vote. This appeal frames the SAC as a legitimate authority seeking engagement, and underscores the symbolic significance of Trump’s direct correspondence.

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