South East Asia is Thriving as Trump's Tariffs Cause Economic Jolt.
Vietnam, Cambodia, and nearby countries encounter severe taxes as their export-oriented growth strategies are jeopardized.
President Donald Trump’s global tariff initiative has struck South East Asia hard, where some of the highest trade penalties in the world—soaring to 49 percent—are jeopardizing economies that depend heavily on US exports. Vietnam and Cambodia are the most affected, followed by Thailand, Indonesia, and Malaysia, with experts cautioning that this could hinder decades of regional development.
Exports to the US represent nearly a quarter of Vietnam’s GDP and an astonishing 67 percent of Cambodia’s. Both countries are now urgently working to safeguard vital sectors, with Vietnam sending high-ranking officials to Washington and Cambodia alerting to potential widespread job losses in its garment sector, crucial for social welfare. Meanwhile, Thailand, already grappling with slow growth, finds itself facing renewed challenges.
The Trump administration maintains that the tariffs are essential to rectify trade imbalances and thwart Chinese trans-shipments, rejecting proposals from Vietnam and others to lower or eliminate tariffs on US goods. As China retaliates, Southeast Asian nations are choosing to negotiate. However, with Washington resistant to compromise, the region's economic stability—and political balance—hangs in the balance.
Exports to the US represent nearly a quarter of Vietnam’s GDP and an astonishing 67 percent of Cambodia’s. Both countries are now urgently working to safeguard vital sectors, with Vietnam sending high-ranking officials to Washington and Cambodia alerting to potential widespread job losses in its garment sector, crucial for social welfare. Meanwhile, Thailand, already grappling with slow growth, finds itself facing renewed challenges.
The Trump administration maintains that the tariffs are essential to rectify trade imbalances and thwart Chinese trans-shipments, rejecting proposals from Vietnam and others to lower or eliminate tariffs on US goods. As China retaliates, Southeast Asian nations are choosing to negotiate. However, with Washington resistant to compromise, the region's economic stability—and political balance—hangs in the balance.
