Myanmar Faces 44% Tariff as Trump Escalates Trade War

[geovalin]

 

Myanmar, already battered by conflict and natural disasters, has been hit with a 44% tariff under US President Donald Trump’s latest round of trade levies. The move is part of a sweeping overhaul of US trade policy, targeting several Southeast Asian and African nations, with Trump declaring it a fight against countries that have “cheated” America.

 

Announced on Wednesday, the tariffs mark a sharp shift in US economic relations and risk igniting a global trade war. Myanmar, which suffered a devastating earthquake last week and continues to grapple with the effects of a 2021 military coup, is among the hardest-hit nations. Analysts say the decision will further strain an already fragile economy, where conflict, displacement, and sanctions have choked trade and investment.

 

While Cambodia tops the list with a 49% tariff, Myanmar’s position is not far behind. Laos (48%), Vietnam (46%), and Sri Lanka (44%) have also been targeted. Meanwhile, major players like China (34%) and Indonesia (32%) face significant levies, highlighting what experts believe is a broader strategy to curb Chinese influence in the region.

 

Dr Siwage Dharma Negara of the ISEAS-Yusof Ishak Institute in Singapore noted that these tariffs indirectly aim at China, as Myanmar and other Southeast Asian nations have increasingly become hubs for Chinese investment. “By targeting these countries, the administration hopes to hit Chinese exports and influence,” he explained.

 

For Myanmar, the tariff could have severe consequences. The country’s economy has already shrunk under military rule, with foreign investment fleeing and inflation soaring. The US is an important export destination, particularly for garments and agricultural goods—sectors that employ thousands of vulnerable workers. With increased costs, businesses may struggle to remain competitive, potentially leading to factory closures and job losses.

 

The broader impact of Trump’s tariffs remains uncertain, but experts warn of rising costs, inflation, and economic instability. As one financial analyst put it: “This is how you sabotage the world’s economic engine while claiming to supercharge it.”

 

With reciprocal tariffs set to take effect on 9 April, Myanmar and other affected nations now face a difficult path ahead, as they weigh potential responses to the sudden economic shock.

 

-2025-04-03