South East Asia Shudders as Trump Tariffs Cause Economic Disturbance
Vietnam, Cambodia, and neighboring countries are confronting severe taxes as their export-oriented growth strategies are challenged.
President Donald Trump’s global tariff strategy has struck hard in Southeast Asia, where some of the highest trade penalties in the world—reaching as much as 49 percent—are jeopardizing economies that heavily depend on US exports. Vietnam and Cambodia are the most affected, followed by Thailand, Indonesia, and Malaysia, with experts warning that this situation could undermine decades of regional development.
Exports to the US represent nearly a quarter of Vietnam’s GDP and an astounding 67 percent of Cambodia’s economy. Both countries are now racing to safeguard vital sectors, as Vietnam sends high-ranking officials to Washington and Cambodia issues warnings about significant job losses in its garment industry, which serves as an essential social safety net. At the same time, Thailand, already grappling with slow growth, finds itself facing additional pressure.
Trump's administration maintains that the tariffs are essential for rectifying trade imbalances and stopping Chinese trans-shipments, dismissing proposals from Vietnam and other nations to lower or eliminate tariffs on US goods. While China responds with its own measures, Southeast Asian countries are choosing to engage in negotiations. However, with Washington reluctant to make concessions, the region’s economic stability—and political balance—is at risk.