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US tariffs impact SEA with high rates for Vietnam, Cambodia, Laos

On Apr. 2, the US government announced tariffs ranging from 10% to 49% on several Southeast Asian nations under the “Liberation Day” initiative.

Cambodia, Laos, and Vietnam face the highest tariffs at 49%, 48%, and 46%, respectively. Other affected countries include Myanmar (44%), Thailand (36%), Indonesia (32%), Brunei (24%), Malaysia (24%), the Philippines (17%), Timor-Leste (10%), and Singapore (10%).

The White House justified the move as a response to unfair trade practices, but critics argue the tariffs were based on trade surplus data rather than actual tariff rates.

The tariffs could significantly impact export-driven economies, especially Vietnam, where US trade makes up 29% of total exports and 30% of GDP.

Cambodia’s garment industry, which heavily relies on US demand, may also suffer.

Analysts warn that the decision could weaken trust in US partnerships, particularly with Vietnam, which recently strengthened ties through a Comprehensive Strategic Partnership.

Some believe the tariffs may be a negotiation tactic, but they come at a time when China’s influence in the region is growing.

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