By Staff
NORTHWEST ASIAN WEEKLY
Southeast Asian countries are facing major economic challenges as new tariffs imposed by the Trump administration start to take effect. These steep duties are targeting key industries, making it harder for countries like China, Vietnam, Taiwan, and India to remain competitive in the U.S. market. As a result, their export costs have risen, and many industries are feeling the pressure.
China
China, the biggest target of the tariffs, is facing a combined 54% tariff on various goods exported to the U.S., including a 20% tariff under the International Emergency Economic Powers Act and a 34% reciprocal tariff. This affects everything from electronics and machinery to textiles and consumer goods. The trade disruption has had a big impact on Chinese manufacturing, with companies now scrambling to find new markets or adjust their strategies.
Even with retaliatory tariffs from China on U.S. goods, the damage to China’s economy is clear. Industries that rely heavily on the U.S. market, like electronics and textiles, are dealing with higher costs and increasing uncertainty.
Vietnam
Vietnam, which had seen some benefits from the trade shift away from China, is also feeling the pressure. A 46% tariff on its exports to the U.S. has caused significant disruption in industries like textiles, electronics, and footwear. As a result, Vietnam’s export-driven economy is facing difficulties, with its goods becoming less competitive in the U.S. market.
Taiwan
Taiwan, a country that depends heavily on exports, particularly in the tech sector, is also struggling with the new tariffs. With a 32% tariff on its products, the cost of Taiwanese goods—like semiconductors and consumer electronics—has gone up in the U.S. market. As a result, Taiwan’s tech industry, a major part of its economy, is now looking for alternative markets to offset the lower demand from the U.S.
India
India, which exports a wide range of goods to the U.S., including textiles, agricultural products, and machinery, is facing a 26% tariff. The new tariffs have made Indian exports more expensive, leading to a drop in demand from U.S. buyers. India’s textile industry, one of the country’s biggest sectors, has been particularly hard hit as U.S. buyers turn to cheaper suppliers. Agricultural products like tea, spices, and fruits are also seeing less demand, putting more pressure on India’s export-driven economy.
Other Southeast Asian countries hit hard
Other countries in Southeast Asia are also feeling the impact. Cambodia, Sri Lanka, Laos, and Myanmar are facing tariffs ranging from 44% to 49% on their exports to the U.S. These nations, which rely on industries like textiles, agriculture, and manufacturing, are seeing reduced access to the U.S. market.
Cambodia’s garment industry is struggling, with the 49% tariff making its products more expensive and less competitive. Similarly, Sri Lanka’s textile sector is facing challenges, and Myanmar is dealing with a drop in demand for agricultural exports like rice and beans.