SEA, your future looks tariff-ic

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Since US President Donald Trump imposed new trade tariffs on countries across the world last week, much of the conversation on social media has centered around one question: Why?

Economists, political analysts and even some of Trump’s fellow ideologues seem baffled as to what the goal of taxing trade so highly is. Trying to understand Trump’s motivations as a politician has always seemed futile to me – sometimes they just don’t hold up to logic.

Rather than try and parse why this has happened, today’s featured story explores the possible impact of these tariffs on Southeast Asia. Spoiler alert: It’s not pretty.

Today we look at:

• Tariffs here, there, and everywhere
• The Indian government questioning Ola Electric Mobility’s sales figures
• Other newsy highlights such as AI tools for Grab’s merchants and drivers and Agritech ClimAccelerator Singapore’s new program.

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Trump’s tariff tantrum

Image credit: Timmy Loen

The world is counting the cost of the trade tariffs announced by US President Donald Trump last week.

Southeast Asia is expected to experience a sharp decline in exports and could lose its appeal as a destination for global businesses seeking to diversify their supply chains.

• Tech hit hard: Collectively, Vietnam and Thailand exported more than US$70 billion worth of tech products to the US in 2024. These new tariffs will have a significant impact on that figure.
• Knock-on effects: In recent years, Chinese companies looking to circumvent US trade restrictions have found Southeast Asian countries to be viable alternatives for manufacturing and transshipment. Higher tariffs on countries like Vietnam make that a less attractive option, according to analysts.
• Uncertain future: Analysts have slashed growth forecasts for countries across the region due to the US tariffs. But there is hope that the rates could be cut, either through negotiations or if Trump decides to reverse them on his own.

Read more: New Trump tariffs deal ‘massive blow’ to Southeast Asia

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Ola under scrutiny

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