Nations in Southeast Asia, including the war-affected and disaster-stricken Myanmar, along with various African countries, are among the trading partners facing the steepest tariffs imposed by US President Donald Trump.
In a significant departure from long-standing US trade policy, Trump announced a series of tariffs on Wednesday, claiming they are aimed at preventing the US economy from being “cheated”.
“In my view, this is one of the most significant days in American history,” Trump stated on Wednesday. “It marks our economic independence.”
While the US president hailed it as “liberation day,” the tariffs are expected to provoke strong opposition from some of the world’s most vulnerable economies. Experts suggest Trump may be focusing on countries that benefit from Chinese investment, irrespective of local conditions. Manufacturers in China have historically relocated to countries like Vietnam and Cambodia not only to reduce costs but also to sidestep tariffs.
These tariffs come at a time when many Southeast Asian nations are already facing the repercussions of USAid cuts, which provide humanitarian assistance to a region that is susceptible to natural disasters and supports pro-democracy activists opposing oppressive regimes.
Cambodia, classified as a developing economy where 17.8% of the population lives below the poverty line according to the Asian Development Bank (ADB), faces the highest tariff rate in the region at 49%. Reports indicate that over half of the factories in the country are owned by Chinese investors.
Following Cambodia, Laos, a landlocked Southeast Asian country heavily bombed by the US during the Cold War, faces a 48% tariff. The ADB reports a poverty rate of 18.3% in Laos.
Next is Vietnam at 46%, and Myanmar, which is recovering from a severe earthquake last Friday and enduring years of civil conflict since a military coup in 2021, is subject to a 44% tariff.
Indonesia, the largest economy in Southeast Asia, faces a 32% tariff rate, while Thailand, the second-largest economy, has been subjected to a 36% tariff.
China, a primary competitor and trading partner, is facing a reciprocal tariff of 34%, in addition to the existing 20% levy.
Dr. Siwage Dharma Negara, a senior fellow at the ISEAS-Yusof Ishak Institute in Singapore, remarked that the tariffs imposed on Southeast Asian nations are primarily intended to impact China.
“The administration believes that by targeting these nations, they can indirectly strike at Chinese investments in places like Cambodia, Laos, Myanmar, and Indonesia. By focusing on their products, it may also affect Chinese exports and their economy,” he stated.
“While the true target is China, the actual ramifications for these countries will be significant, as these investments foster job creation and generate export revenue.”
He added that imposing tariffs on countries like Indonesia could be counterproductive for the US, and the specifics of how these tariffs will be enforced remain ambiguous.
“Certain apparel and footwear companies, including American brands like Nike and Adidas, which have manufacturing facilities in Indonesia, might also be subjected to the same tariffs,” he noted.
Other severely affected nations include various African countries, such as Lesotho, which Trump mentioned last month as “a country nobody has ever heard of,” facing a 50% tariff, Madagascar with 47%, and Botswana at 37%. Lesotho, a small kingdom enveloped by South Africa, has one of the highest HIV infection rates globally, with nearly one in four adults infected.
In South Asia, Sri Lanka is confronted with a 44% tariff, while Serbia in Europe faces a rate of 37%.
In addition to the reciprocal tariffs on numerous countries, Trump will enforce a 10% universal tariff on all imported goods. This tariff is set to commence on April 5, with the reciprocal tariffs beginning on April 9.
The US president defends these measures as retaliation for nations that have allegedly “cheated” the US, asserting that the tariffs will help bring jobs back to America.
However, economists have cautioned that these sweeping alterations could elevate costs, jeopardize jobs, hinder growth, and drive the US away from the global trading system it helped to establish and promote over many decades.
“This is how you undermine the world’s economic engine while claiming to revitalize it,” said Nigel Green, CEO of global financial advisory deVere Group.
“The reality is clear: these tariffs will inflate prices on thousands of everyday items—from electronics to food—intensifying inflation during a time when it is already uncomfortably persistent.”
