Trump’s New Tariff Policy Hits Asian Countries the Hardest
Over 90 Nations Face Increased US Tariffs, with Southeast Asia Most Affected
Over 90 Nations Face Increased US Tariffs, with Southeast Asia Most Affected
Former U.S. President Donald Trump’s latest new tariff policy announcement has sparked concern across Southeast Asia, with countries in the region among the worst affected. On Thursday, Trump imposed new reciprocal tariffs on over 90 countries, ranging from 10% to a staggering 41%.
Southeast Asia Faces Steep Tariff Hikes
According to a BBC report, countries like Cambodia, Indonesia, Malaysia, the Philippines, Bangladesh, Sri Lanka, Thailand, and Vietnam now face tariffs between 19% and 20%. Brunei has been hit with a 25% tariff, while Laos and Myanmar are facing the highest rates—40%.
Dr. Deborah Elms, Head of Trade Policy at the Hinrich Foundation, suggests that limited U.S. market access, lower purchasing power, and strong ties with China could be reasons behind the harsh rates.
Pakistan, India, and Central Asia Also Impacted
Tariff rates across the Indo-Pacific vary significantly. Pakistan, which exports about 60% of its textiles to the U.S., faces a 19% tariff—lower than India, Bangladesh, or Vietnam. Afghanistan, Fiji, Nauru, and Papua New Guinea are subject to a 15% tariff, while Kazakhstan and India both face 25%.
In addition, India is facing unspecified penalties from the U.S. for purchasing oil and weapons from Russia. U.S. Secretary of State Marco Rubio said India’s growing ties with Moscow remain a “point of irritation” in U.S.-India relations. However, the current tariff is slightly lower than the proposed 27% from April.
Japan, South Korea, and Taiwan in Relatively Better Position
Compared to other Asian nations, Japan and South Korea remain less affected due to their export of essential products like automobiles and semiconductors to the U.S.
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Taiwan, a key U.S. ally and major semiconductor exporter, had its tariff rate reduced from 32% to 20%. Still, uncertainties remain about whether Taiwan’s chip sector will face additional tariffs. President Lai Ching-te of Taiwan described the current rate as “temporary” as negotiations with Washington continue.
China Absent from Tariff List but Remains at Center Stage
Although China was not included in the latest U.S. tariff list, it remains central to ongoing trade discussions. Both nations have agreed to extend their current trade truce by 90 days, originally set to expire on August 12.
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ASEAN Countries Seek Bilateral Solutions
The tariffs have also affected ASEAN countries, with Vietnam being the first to negotiate and successfully reduce its tariff from 46% to 20%. Singapore, which imports more from the U.S. than it exports, has maintained a stable 10% tariff.
