In Southeast Asia, millions of garment workers are gripped by anxiety as a significant trade deal with the U.S. is set to expire, potentially resulting in punitive tariffs. On July 9, President Trump announced new tariff rates that would impact countries like Cambodia and Sri Lanka, where the garment industry is a vital part of the economy and deeply integrated with American brands.
Rising from a three-month negotiation pause, the U.S. plans to impose tariffs of 36% on Cambodia and 30% on Sri Lanka starting August 1. For workers such as Nao Soklin in Cambodia, the thought of job loss is harrowing; she fears for the well-being of her children and elderly parents as her modest monthly income barely sustains them. The garment sector supports over 900,000 jobs in Cambodia and contributed over $3 billion to the U.S. market last year.
Sri Lanka, employing approximately 350,000 people in this sector and securing $1.9 billion in U.S. exports, faces similar fears. Yohan Lawrence, representing Sri Lanka's apparel sector, warned that their competitive edge is weakened against neighbors like Vietnam, which may see more favorable tariff rates.
Authorities in both countries are urgently seeking to renegotiate tariff terms, with hopes pinned on achieving lower rates, while acknowledging past concessions. Nonetheless, experts argue that the U.S. tariffs could counteract previously established trade benefits, which include access to cheaper clothing for American consumers.
Mark Anner, a professor specializing in trade relationships, highlighted that the U.S. is seeking to alter a trade dynamic that previously benefited developing nations like Sri Lanka and Cambodia. Amid these shifts, established issues such as weak labor rights and existing economic crises in these nations compound the uncertainty for workers, particularly those women who comprise a significant percentage of the labor force.
Workers express a quiet desperation for relief from tariffs, with many contemplating drastic measures as a possible last resort to secure their families’ futures. "We pray every day that President Trump will lift the tariff," said An Sopheak, a garment worker from Cambodia, voicing the hope of many affected by the looming tariffs.
Rising from a three-month negotiation pause, the U.S. plans to impose tariffs of 36% on Cambodia and 30% on Sri Lanka starting August 1. For workers such as Nao Soklin in Cambodia, the thought of job loss is harrowing; she fears for the well-being of her children and elderly parents as her modest monthly income barely sustains them. The garment sector supports over 900,000 jobs in Cambodia and contributed over $3 billion to the U.S. market last year.
Sri Lanka, employing approximately 350,000 people in this sector and securing $1.9 billion in U.S. exports, faces similar fears. Yohan Lawrence, representing Sri Lanka's apparel sector, warned that their competitive edge is weakened against neighbors like Vietnam, which may see more favorable tariff rates.
Authorities in both countries are urgently seeking to renegotiate tariff terms, with hopes pinned on achieving lower rates, while acknowledging past concessions. Nonetheless, experts argue that the U.S. tariffs could counteract previously established trade benefits, which include access to cheaper clothing for American consumers.
Mark Anner, a professor specializing in trade relationships, highlighted that the U.S. is seeking to alter a trade dynamic that previously benefited developing nations like Sri Lanka and Cambodia. Amid these shifts, established issues such as weak labor rights and existing economic crises in these nations compound the uncertainty for workers, particularly those women who comprise a significant percentage of the labor force.
Workers express a quiet desperation for relief from tariffs, with many contemplating drastic measures as a possible last resort to secure their families’ futures. "We pray every day that President Trump will lift the tariff," said An Sopheak, a garment worker from Cambodia, voicing the hope of many affected by the looming tariffs.
