From Makers to Victims: American Apparel Workers Face Consequences Amid Industry Changes

Millions of garment workers across Asia are facing an uncertain future as a looming deadline for a trade deal with the United States approaches. With new tariffs set to take effect on August 1, countries like Cambodia and Sri Lanka, which heavily rely on the US as an export market, are bracing for the potential economic fallout. The tariffs, announced by President Donald Trump, could impose rates of 36% on Cambodian goods and 30% on Sri Lankan exports, raising fears of job losses and increased poverty among workers in the garment industry.

Impact on Workers in Cambodia

In Cambodia, garment workers are expressing deep concerns about their livelihoods. Nao Soklin, a factory worker, fears for her family’s future as she and her husband earn a meager $570 a month, barely enough to support their two children and elderly parents. The garment sector is crucial for Cambodia’s economy, generating over $3 billion in exports to the US last year and employing more than 900,000 people. Soklin has urged President Trump to reconsider the tariffs, emphasizing the dire need for jobs to support families. The garment industry has become a vital alternative to Chinese manufacturing, but the impending tariffs threaten to undermine this progress.

The situation is dire for many workers who already live paycheck to paycheck. The potential for job losses looms large, and the fear of not being able to provide for their families is palpable. As the deadline approaches, workers like Soklin are left wondering how they will survive if their jobs are taken away.

Sri Lanka’s Economic Concerns

Sri Lanka is also facing significant challenges due to the impending tariffs. The country’s garment industry, which directly employs around 350,000 people, generated $1.9 billion in exports to the US last year, making it a critical component of the national economy. Yohan Lawrence, secretary general of Sri Lanka’s Joint Apparel Association Forum, has voiced concerns that the proposed 30% tariff could severely impact the industry, especially when compared to competitors like Vietnam, which have received lower tariff rates.

Sri Lankan authorities are actively seeking to negotiate a reduction in the tariffs but have not disclosed what they would consider an acceptable rate. Some officials believe that the country has already made progress in negotiations, securing a 14 percentage point concession. However, the uncertainty remains, and the garment sector’s future hangs in the balance as it navigates these challenging trade dynamics.

Negotiations and Trade Dynamics

As the deadline for the new tariffs approaches, both Cambodia and Sri Lanka are engaged in last-ditch negotiations with US officials. Cambodian Deputy Prime Minister Sun Chanthol has expressed the desire for a zero tariff rate, emphasizing the importance of protecting both investors and workers. The US administration has stated that the tariffs are necessary to address trade imbalances, but analysts argue that these measures could harm the very economies they aim to support.

Experts point out that the tariffs may overlook the benefits that the US gains from existing trade agreements, such as lower-priced clothing and increased profits for American companies sourcing from these countries. The historical context of trade relations, including the phased-out quota system that previously supported developing nations, adds complexity to the current situation. As both countries strive to maintain economic ties with the US while managing their relationships with China, the stakes are high for the garment industry.

The Gendered Impact of Tariffs

The looming tariffs are expected to disproportionately affect women, who make up approximately 70% of the garment workforce in the region. Many women in Cambodia and Sri Lanka already face challenges related to low wages and job security. The potential for layoffs and reduced orders could lead to increased poverty and food insecurity for families that rely on these jobs.

Workers like Surangi Sandya, a supervisor in Sri Lanka, have expressed anxiety about the future of their employment. With the threat of company closures looming, many workers are considering desperate measures, including illegal migration to neighboring countries for work. The emotional toll of uncertainty weighs heavily on these workers, who pray daily for relief from the tariffs and hope for a more stable economic future. The situation highlights the urgent need for a resolution that considers the well-being of workers and their families in the garment industry.

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