Trump Slaps ASEAN Tariff Over U.S. Trade Deficit
President Trump has introduced sweeping new tariffs on ASEAN countries. He claims these tariffs respond to unfair trade practices and large U.S. trade deficits. The policy assigns tariffs based on each country’s trade surplus and what they charge U.S. products. Although framed as “reciprocal,” the move affects key allies, strategic partners, and fast-growing economies. Below is a detailed breakdown.
1. Cambodia – 49%
Cambodia faces the steepest tariff at 49%. Trump says Cambodia imposes up to 35% on U.S. goods. In 2023, the U.S. posted a $9.4 billion trade deficit with Cambodia. As a result, Cambodia may redirect its exports toward China and the EU. However, its textile sector will likely suffer the most.
2. Laos – 48%
Next is Laos, with a 48% tariff. Trump claims Laos levies 34% on U.S. imports. The U.S. recorded a $163 million deficit with Laos. Although economic ties are small, Laos may reroute exports through Vietnam or Thailand. This move could help soften the impact.
3. Vietnam – 46%
Vietnam faces a 46% tariff. Trump accuses Vietnam of charging 55% on U.S. goods. The 2023 trade deficit reached $104.2 billion, the highest among ASEAN countries. Consequently, Vietnam seeks negotiations and may turn to Europe and Australia for trade. Its electronics and textile sectors will face mounting pressure.
4. Myanmar – 44%
Myanmar receives a 44% tariff. Trump claims the country levies 40% on U.S. products. The U.S. had a $1.1 billion deficit with Myanmar. Due to political instability, Myanmar has limited options. It may lean further into China and Russia for trade support.
5. Thailand – 36%
Thailand now faces a 36% tariff. Trump says Thailand taxes U.S. agriculture and autos up to 45%. The 2023 trade deficit hit $38.2 billion. Thailand plans to seek exemptions for key sectors. Additionally, it may strengthen ties with ASEAN+3 markets.
6. Indonesia – 32%
Indonesia faces a 32% tariff. Trump says the country imposes 64% on U.S. products. The U.S. had a $20.1 billion deficit with Indonesia. In response, Jakarta may file a WTO complaint and boost trade with the Middle East. Overall, its rubber and textile industries could see reduced demand.
7. Brunei – 24%
Brunei gets a 24% tariff. Trump says Brunei charges 22% on American goods. The U.S. trade deficit was only $34 million. Brunei likely won’t retaliate due to low exposure. Instead, it may quietly increase regional cooperation.
8. Malaysia – 24%
Malaysia also faces a 24% tariff. Trump claims Malaysia imposes 35% on U.S. electronics and food items. The 2023 trade deficit stood at $33.7 billion. Malaysia may explore WTO channels. Meanwhile, tech and palm oil exporters prepare for tighter margins.
9. Philippines – 17%
The Philippines receives a 17% tariff. Trump says it charges 30% on U.S. meat and dairy. The U.S. recorded a $5.9 billion deficit in 2023. As a long-time U.S. ally, the Philippines hopes to negotiate reduced rates. However, its electronics and BPO-linked exports may face delays.
10. Singapore – 10%
Singapore faces the lowest tariff at 10%. Trump notes that Singapore imposes zero tariffs but charges a 9% GST on all imports. In 2023, the U.S. enjoyed a $9.7 billion trade surplus with Singapore. Singapore will likely lobby for exemption. It may also push ASEAN toward a coordinated response.
ASEAN’s Joint Strategy Against U.S. Tariff
ASEAN may respond collectively, much like the European Union. Member states could file a joint WTO complaint or apply selective retaliatory tariffs. Countries like Singapore, Malaysia, and Vietnam will likely lead diplomatic and legal actions. Meanwhile, Cambodia, Laos, and Myanmar may turn to China for support. Additionally, ASEAN may accelerate internal trade and improve regional supply chains. This shift could reduce long-term dependence on the U.S. market.
