Trump Tariffs Force Samsonite Supplier to Exit Myanmar

Twinkle

A major travel bag factory in Yangon has shut its doors permanently following a steep tariff hike imposed by the United States, dealing a fresh blow to Myanmar’s fragile manufacturing sector.

Twinkle (Myanmar), a Chinese-owned facility in the Shwepyithar Industrial Zone, ceased operations earlier this month after the U.S. raised tariffs on Myanmar-made goods from 20 to 40 percent. The factory, which produced for brands like Samsonite and Callaway Golf, employed over 200 workers and had been a key player in the country’s export economy since 2019.

Staff were notified of the closure shortly after the tariff took effect on 1 August. While workers received one month’s salary in compensation, many expressed frustration and uncertainty about their future. “It has been four days since the factory was closed,” one former employee posted online. “We have received compensation.”

The shutdown highlights the vulnerability of Myanmar’s “cut-make-pack” (CMP) sector, which includes garment, bag, and shoe manufacturing. The industry employs nearly 800,000 people and relies heavily on exports to the U.S.—currently its fourth-largest market. The Myanmar Garment Manufacturers Association had warned in April that the new tariffs would likely dampen trade and deepen economic strain.

Already reeling from international sanctions following the 2021 military coup, the CMP sector faces additional hurdles: power outages, fuel shortages, and rigid currency controls that force exporters to convert earnings at unfavourable fixed rates.

Twinkle (Myanmar) made its final shipment via Singapore on 16 August. The company has not issued a formal statement, and office staff declined to comment beyond confirming the closure on social media.

As Myanmar’s export landscape shifts under geopolitical pressure, the loss of factories like Twinkle underscores the human cost of global trade disputes—and the precarious position of workers caught in the crossfire.

-2025-08-31