Trump slaps 44% tariff on quake-hit Myanmar, fuelling economic fears

Myanmar, already struggling with earthquake recovery, now faces a 44 per cent US tariff under Donald Trump's trade policy, threatening key industries and worsening its economic challenges

The imposition of a 44 per cent tariff by the United States under President Donald Trump’s ‘Liberation Day’ trade policy is expected to have severe repercussions for Myanmar’s already fragile economy. Myanmar, which is grappling with the aftermath of a devastating 7.7-magnitude earthquake and ongoing civil conflict, faces one of the highest tariff rates globally, alongside nations like Cambodia and Laos.

 

The Southeast Asian nation, still struggling to recover from widespread infrastructure damage and political turmoil since the 2021 military coup led by Min Aung Hlaing, has now been hit with punitive tariffs of 44 per cent — among the steepest in the world. As Myanmar appeals to the international community for assistance, concerns are mounting over its ability to recover both economically and structurally.

 

 

Myanmar’s junta chief is expected to travel to Bangkok for the upcoming BIMSTEC summit, where he is likely to raise the issue of international support in the aftermath of the earthquake.

 

Myanmar’s vulnerable economy

Myanmar’s economy is in a precarious state, grappling with the aftermath of a prolonged civil conflict, natural disasters such as recent earthquakes, and international sanctions. The country relies heavily on exports like textiles, agricultural products, and natural resources to sustain its economy. The US is not a major trading partner for Myanmar, but the imposition of a 44 per cent tariff will make Myanmar’s goods significantly less competitive in the American market. This could further erode its already limited export revenue.  ALSO READ | Trump says tariffs on chips and pharma imports to be announced soon

 

Impact on key sectors

1. Textiles and garments: The garment industry is one of Myanmar's largest export sectors and employs hundreds of thousands of workers. Higher tariffs will likely lead to reduced orders from US buyers, forcing factories to cut production or shut down entirely.

   

2. Agriculture: Agricultural products like rice and beans could face similar challenges in accessing US markets due to the steep tariff hike.

 

3. Natural resources: Exports of timber and minerals — already under scrutiny due to environmental and ethical concerns — will become even less viable under the new tariff regime.

 

Additionally, the tariffs could lead to job losses, and currency depreciation.

 

PM Modi meets Myanmar’s military head

Prime Minister Narendra Modi met Myanmar’s Senior General Min Aung Hlaing on Friday. The meeting took place on the sidelines of the Bay of Bengal Initiative for Multi-Sectoral and Technical Cooperation (BIMSTEC) Summit, where leaders from the regional bloc convened.  

 

PM @narendramodi met Senior General Min Aung Hlaing of Myanmar on the sidelines of the BIMSTEC Summit in Bangkok. He conveyed condolences over the recent earthquake and assured India's assistance during this difficult time. They also discussed strengthening India-Myanmar ties,… pic.twitter.com/dHY0JzSrjR

— PMO India (@PMOIndia) April 4, 2025

India has initiated Operation Brahma to support relief efforts in Myanmar, which has been under military rule since the February 2021 coup that brought Senior General Min to power.    ALSO READ | PM Modi holds first talks with Bangladesh CA Yunus after Hasina exit

 

Myanmar plays a crucial role in BIMSTEC’s objective of enhancing regional connectivity. Several key infrastructure projects linking member nations pass through Myanmar, where governance remains fragmented across different regions.

Trump’s tariffs on developing countries

Other developing countries have also been targeted in this new wave of tariffs. Cambodia faces a 49 per cent levy, despite nearly 18 per cent of its population living below the poverty line, according to the Asian Development Bank. Laos, with a poverty rate of 18.3 per cent, has been hit with a 48 per cent tariff. 

Lesotho, a small African nation that Trump once described as a place “nobody has ever heard of”, is facing the highest tariff of all at 50 per cent. The country also has the world’s second-highest HIV prevalence rate.

 

Vietnam, an emerging economy that had taken steps to reduce its trade surplus with the US by lowering tariffs on American imports, has been slapped with a 46 per cent tariff. Sri Lanka, which is slowly recovering from its most severe economic crisis since 2019, now also faces a 44 per cent tariff.

 

[With agency inputs]