Published: 4 Apr 2025

Author: Stephen Olson

Trump’s “Liberation” day tariffs will hit Southeast Asia hard. Countries can hold firm and adopt appropriate countermeasures, or cut “deals” in order to reduce or eliminate the tariffs. Neither option bodes well.

Liberation” day has arrived in the US, and as promised, the Trump administration has unveiled its plans for an unprecedented swath of tariff increases. Declaring the lack of reciprocity in its bilateral trade relationships to be an “unusual and extraordinary threat” to the national security and economy of the US, President Trump has announced a 10 per cent across-the–board tariff on all countries and double-digit “reciprocal” tariffs on those countries deemed to be the worst offenders.  China’s tariff rate is 34 per cent while the EU was hit with a 20 per cent tariff. In Southeast Asia, Vietnam was assessed a 46 per cent rate, Thailand at 36 per cent, Indonesia at 32 per cent, Malaysia at 24 per cent, and Cambodia at 49 per cent. The wealthiest country in the region, Singapore, got off relatively lightly, with only the baseline 10 per cent being applied. Of note for at least some countries in Southeast Asia, semiconductors will be exempted from the reciprocal tariffs.

For full article, please open the link:

https://fulcrum.sg/trumps-liberation-day-unlikely-to-end-well-for-southeast-asia-or-anyone/

The article was published by ISEAS.

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The opinions expressed in this article are the author’s own and do not necessarily reflect the official policy, position or view of IRSEA