US Tariffs Threaten Livelihoods of Garment Workers in Bangladesh and Cambodia, Women Most at Risk
New Delhi, July 16, 2025 — The decision by the United States to impose significantly higher tariffs on garment imports from key Asian manufacturing hubs like Bangladesh and Cambodia is raising widespread alarm. Unions, economists, and industry leaders warn that the move will cripple the lives and livelihoods of millions of workers — especially women — who form the backbone of these countries' garment industries.
Effective August 1, 2025, Bangladeshi goods will face a 35% tariff, while Cambodian exports will be hit with a 36% tariff, as the 90-day pause on tariff hikes ends.
Women Workers at the Heart of the Crisis
The impact will be disproportionately felt by female workers, who make up the majority of the workforce in both countries' garment sectors.
“If these women lose their jobs because high tariffs force factories to shut, it will not only impact Cambodia’s economy, but children may not be able to go to school and aging parents may not be able to afford medicine,” said Yang Sophorn, President of the Cambodian Alliance of Trade Unions.
In Cambodia alone, over 900,000 people work in the garment sector, which accounts for nearly half the country’s export revenue. In Bangladesh, the garment industry employs more than four million workers, the majority of whom are women from rural and low-income backgrounds.
Many of these workers have taken out loans to support their families or pay off debts, relying entirely on factory jobs for their income. With layoffs looming, their entire financial stability is at risk.
A Regional Shift in Trade Dynamics
The decision, announced by US President Donald Trump via letters posted on his social platform, Truth Social, on July 8, is part of a broader reshaping of trade relationships.
While Bangladesh and Cambodia are now subject to higher tariffs, the United States recently struck a deal with Vietnam, capping tariffs on Vietnamese goods at 20%. India is also negotiating a trade agreement, while Pakistan’s reciprocal tariff structure remains unclear.
“With Vietnam having a lower tariff and being right next door, many companies may simply relocate operations from Cambodia, which would be devastating,” said Sophorn.
This has led to concerns that supply chains will shift, leaving Bangladesh and Cambodia at a severe competitive disadvantage. Factories could scale back or shut down entirely.
Industry Voices Raise Alarm
“The potential loss of jobs will cut the income and ability for workers to sustain their daily lives,” said Ath Thorn, Vice President of the Coalition of Cambodian Apparel Workers’ Democratic Union, which represents 80,000 workers across 40 factories.
In 2024, Cambodia exported nearly $10 billion worth of goods to the US, with garments, footwear, and luggage forming a major portion. Similarly, Bangladesh exported $8.4 billion worth of goods, of which $7.34 billion came from the garment sector.
“With more than doubling tariff rates, can you imagine how the cost of the products will rise?” asked Mohiuddun Rubel, a former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and now executive at Denim Expert Ltd.
Rubel questioned what tariff rates the US might impose on India or Pakistan, both of which are major competitors in the global apparel market.
A Blow to Buyer Confidence and Investment
The abrupt tariff hikes could erode the confidence of international buyers and investors, making it more difficult for factory owners in Bangladesh and Cambodia to plan for the future.
“If tariff rates on our competitors like India, Indonesia and Vietnam prove to be lower, we will face a serious disadvantage,” warned Dr. Selim Raihan, economics professor at Dhaka University.
According to Raihan, higher production costs and thinner profit margins will likely push factories to reduce operations or shut down altogether.
Calls for Government Action
As the clock ticks toward the August 1 implementation date, unions are urging their governments to continue diplomatic efforts to negotiate lower tariffs, diversify export markets, and provide financial safeguards to affected workers.
“If we don’t act, we will face serious economic and social problems,” warned Ath Thorn.
Cambodia’s temporary reduction from a 49% to 36% tariff offers slight relief, but the garment industry remains tense. Industry leaders hope the government will explore new trade routes or incentives to help companies weather the storm.
Final Thoughts from The Trending People
The United States’ tariff hike may be a strategic move in global trade, but for the millions of women workers in Bangladesh and Cambodia, it could mean the loss of a job, the loss of dignity, and the loss of a future. If governments and international partners fail to act swiftly, the ripple effects of this policy will stretch far beyond economics — touching on education, healthcare, and generational poverty.