Fashion
Tariffs pushing Myanmar’s RMG sector to the brink?
Myanmar’s garment industry, once the beating heart of its export economy, is now reportedly reeling under the weight of US tariffs.
A steep 40 per cent tariff on Myanmar’s garment exports has made its products far less competitive than those from Bangladesh, Cambodia, Indonesia, etc, triggering a sharp decline in US orders.
Beyond tariffs, Myanmar’s apparel sector also faces growing headwinds from political instability, sanctions, poor infrastructure, and global scrutiny over labour rights.
The 40 per cent tariff, slapped on Myanmar, marking a slight reduction from an earlier proposed 44 per cent, has made its products far less competitive, particularly in the face of rising competition from countries like Vietnam, Bangladesh, Cambodia, Indonesia, Malaysia, etc, which enjoy lower—or in some cases, no—tariffs.
For an industry that has already been struggling to stay afloat due to various reasons, the new tariff has come as a hammer blow, compounding an already fragile situation, as per many within the industry.
It may be mentioned here that political instability, for long, remained a major concern area, with the military-led government facing growing international condemnation and sanctions.
The country also reportedly suffers from poor infrastructure, power outages, and limited access to financing, all of which make it a difficult place to do business. On top of that, questions around labour rights and corporate governance are also putting Myanmar’s garments on the radar of the increasingly discerning Western consumers.
In Europe, especially in markets like Germany and the UK, there is reportedly a growing movement to exclude Myanmar-made products due to concerns over labour practices and human rights, even as the International Labour Organization (ILO) also invoked Article 33—its most serious enforcement measure—for Myanmar’s alleged failure to comply with international labour standards.
And now there’s the additional 40 per cent tariffs imposed by the US. The result, as industry insiders claim, notable reduction in fresh orders, pushing factories to downsize, cut shifts, lay off workers, and factory closures in many cases.
In Yangon’s industrial zones, the slowdown is palpable. As per reports, at least six factories have shut down since August, while many others are operating at reduced capacity to survive the downturn.
The Myanmar Garment Manufacturers Association (MGMA) reportedly revealed that by August, 56 of its 589 member factories had suspended operations entirely, while the Federation of General Workers Myanmar (FGWM) has reportedly held the US tariff responsible for triggering the factory closures, pointing out that the increased costs have made it impossible for producers to remain viable.
The ripple effects are hitting the workforce hardest—particularly women, who make up the vast majority of the garment sector’s employees. For years, the industry has been one of the few reliable sources of income and empowerment for women in Myanmar. Now, thousands are reportedly finding themselves out of work as factories shutter or scale back, and those still employed are facing shorter working hours, slashed overtime, and shrinking wages.
So, even if the sector remains a vital part of the country’s economy, with every factory that shuts down and with every worker who loses their job, Myanmar’s path back to recovery seems increasingly difficult.
Fibre2Fashion News Desk (DR)
“This bill protects Louisiana workers and American businesses, ensuring loopholes don’t hold them back,” Dr Cassidy said in a press release.
US Senators Bill Cassidy and Sheldon Whitehouse have introduced the Last Sale Valuation Act to close the ‘first sale’ customs loophole that lets importers underpay duties.
The bipartisan bill would base tariffs on final sale values, strengthen US Customs enforcement and curb duty evasion.
Supporters say it will protect American manufacturers, workers and federal revenue.
If passed, the bipartisan measure would grant clearer enforcement authority to US Customs and Border Protection (CBP), streamline valuation reviews and reduce disputes over documentation, while curbing mis-invoicing and related-party pricing schemes linked to tariff evasion and illicit financial activity.
The legislation has drawn support from the American Compass, the Coalition for a Prosperous America and the Southern Shrimp Alliance.
“Cassidy’s ‘Last Sale Valuation Act’ strengthens customs valuation by assessing duties on the final transaction value of goods entering the US,” said Mark A DiPlacido, senior political economist at the American Compass, adding that closing the judicially created ‘first sale’ loophole would reduce duty evasion, simplify enforcement and increase customs revenue.
Jon Toomey, president of the Coalition for a Prosperous America, said the bill is “an important first step in restoring customs integrity,” ensuring duties are paid on the true commercial value of imported goods and helping level the playing field for American manufacturers and workers.
Fibre2Fashion News Desk (CG)
Rising global political and economic tensions have driven sustained increases in raw material and energy costs, impacting the textile machinery sector.
Rieter has faced mounting input expenses amid strong demand and price hikes for various materials.
The company has so far absorbed the additional costs but will implement price adjustments from March 2026 as pressures persist.
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“Running continues to gain extraordinary momentum around the world as more people choose movement as part of their approach to health and wellness,” said Dan Sheridan, Brooks CEO. “Our opportunity ahead is incredibly exciting and I have great confidence in the entire Brooks global team. Following a record 2025, we enter 2026 energised by the innovations and programmes we’ll deliver to runners and retailers worldwide.”
Brooks Running closed 2025 with record global revenue, up 16 per cent year-over-year, marking its ninth straight year of growth.
Strong gains came from North America, EMEA, and Asia Pacific–Latin America, led by a surge in China.
Growth was driven by performance innovation, strong footwear sales, and new lifestyle collections and collaborations.
In EMEA in 2025, the performance running footwear market grew 14 per cent in France and 21 per cent in Germany with Brooks outpacing both 22 per cent and 28 per cent, respectively, the company said in a press release.
In 2025, ten Brooks footwear styles posted year-over-year revenue growth of 20 per cent or more. The Glycerin series, featuring Brooks’ new DNA Tuned midsole foam, delivered 33 per cent revenue growth and a 27 per cent increase in unit sales year over year, accelerated by a 46 per cent year-over-year revenue surge in Q4.
At Paris Fashion Week in January 2025, Brooks unveiled its new lifestyle footwear collection, which celebrates the brand’s 112-year heritage as a leader in sport and answers customer desire for performance-inspired silhouettes to wear on and off the run. Brooks partnered with streetwear pioneers and visionaries to launch multiple sought-after collaborations including the Brooks x STAPLE Adrenaline GTS 4 with New York-based Jeff Staple and the Brooks x RSVP Gallery Caldera 8 with the renowned Don C.
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