On April 2, 2025, President Donald Trump announced a brand new tariff policy often known as “Liberation Day”. This policy features a 10% basic tariff on just about all imports to the United States, with higher additional tariffs for countries which might be considered unfair industrial practices.
It is claimed that the aim of this movement increases domestic production and reduces the US industrial deficit. However, this policy also caused global concerns in regards to the economic stability and the potential of the trade war.
Growing tariffs, falling markets
The latest tariff policy has a far -reaching impact on the worldwide economy, especially for countries which might be based on exports to American countries with strong production sectors, especially in Asia, are facing serious challenges, because tariff growth may undermine the competitiveness of their products.
Investors and economic analysts also emphasized the potential of inflation and market instability on account of this patronist approach.
According to the Bloomberg report, currencies and stock markets from Southeast Asia were under pressure on account of these tariffs, reflecting investors’ concerns about regional economic perspectives. Meanwhile, Guardian announced that latest tariffs can result in higher prices of products imported within the USA, potentially causing higher inflation.
Reuters also noted that several countries of Southeast Asia expressed their intention to barter with the US government to seek out solutions to alleviate the negative impact of those tariffs.
Controversy regarding US tariff calculations
Of probably the most affected countries, Vietnam, Thailand and Indonesia belong to those at the highest of the list published by the White House. The United States accuses these countries of applying high tariffs on American products and using trade barriers outside the tariff, including currency manipulation.
It is claimed that Vietnam imposes an efficient tariff of 90%on American goods, followed by Thailand (72%), Indonesia (63%) and Malaysia (47%).
However, the diplomat report reveals that these numbers are literally calculated on the premise of the trade surplus of those countries from the USA, and indirectly utilized by tariffs. The White House itself later confirmed this calculation method.
As a result, the US tariff policy is taken into account defective and inaccurate within the assessment of the particular impact of trade. Mike Bird of the Economist even described this calculation method as a type of manipulation, which could be more harmful than the tariffs themselves.
Like American tariffs affect South -East Asia
According to the tariff list published by the White House, on several Southeast Asian countries has a big impact on US trade policy. Cambodia is probably the most affected by the 49%tariff, followed by Laos (48%) and Vietnam (46%).
Vietnam, which largely involves exports to the USA – based on 29% of total export and 30% of its GDP – will significantly affect these tariffs. This policy can damage hard -to -earn bilateral relations and destroy the newly established comprehensive strategic partnership in 2023.
Cambodia may even have serious consequences with a 49%tariff, which might shake the production industry of clothing and clothing, which is strongly depending on exports to the mass layoffs of the US on this sector, can result in economic difficulties and potentially increased political tensions.
Myanmar, despite the limited US trade volume on account of various sanctions, remains to be within the face of a high tariff of 44%.
In addition, Thailand is subject to a 36% tariff, while Indonesia is within the face of 32% of the tariff. Brunei and Malaysia are subject to a 24%tariff.
On the opposite hand, some countries within the region stand in front of the lower tariffs, equivalent to the Philippines with 17%, and Timor-Wimens and Singapore, that are subject only to the fundamental 10%tariff. Singapore and Timor-Wimens are also the one nations of Southeast Asia, which currently register a trade surplus from the USA, giving them a more stable position in coping with these tariff policies.
Although these tariffs could be seen as an initial negotiating position to force Southeast Asia countries to make concessions, this policy signals withdrawal from US involvement to free trade principles. This further reduces the economic impact of the US within the region, making a space for China to strengthen its position as a more stable and predictable economic partner.
