AFP – Hawking clothes outside the garment factory where her daughter toils inside, a Lao vendor weighs US President Donald Trump’s threat of trade tariffs that may soon snarl both their livelihoods.
“I just live day by day. For now, I still have my business, and the factory is operating as usual,” she told AFP, speaking on condition of anonymity in Vientiane Capital.
“I’m not too worried about my daughter’s job yet,” she added. Then again, she says, “I don’t know anything about what the US will decide.”
Laos is now bracing for the Friday deadline when Trump says a 40 percent levy will kick in unless a trade deal is sealed.
The rate is among the highest Trump has touted in his global tariff blitz, which has yielded a handful of deals with countries including Britain, Japan, and Vietnam but left dozens others scrambling for a pact.
Laos has limited exports, little leverage and supply chains deeply entwined with US trade rival China.
The United States had a trade deficit of more than USD 760 million with Laos last year — singling it out for steep tolls alongside other nations Trump sees as imbalanced business partners.
“A 40 percent tariff is just a nail in the coffin for any industry trying to ship to the United States,” said John F. Somers, Executive Chairman of garment manufacturing firm Diep Vu Co.
Only a handful of factories, mostly in the capital, supply the US market and sales make up only between three and six percent of the country’s gross domestic product.
But with the Southeast Asian country already suffering from high inflation and a severe labour shortage, Trump’s default tariff could still have a devastating effect, industry insiders say.
– ‘Cause for suspicion’ –
“We estimate about 20,000 workers or more could be impacted,” said Xaybandith Rasphone, head of the Association of the Lao Garment Industry.
“We’re not certain about the exact number yet, but it could easily be higher if companies shut down,” said Xaybandith, who is also vice-president of the Lao National Chamber of Commerce and Industry (LNCCI).
He warned between 35 and 40 factories could be affected if buyers are spooked by the tariffs.
“If the tariff stays in place, some factories will definitely close,” he said. “Finding alternative markets takes time, negotiations and a lot of effort. It could take years.”
Like neighbouring Cambodia and Vietnam, Laos is a hub of the garment industry — producing brands for western markets including Dr. Martens.
But the production of mattresses, silicone products and solar panels also stands to be impacted.
Solar panel manufacturing has exploded in Laos since 2023 and driven up its export figures after Trump hit China with a 50 percent tariff on the renewable power sources.
However the US trade offensive has focused

