The measures will hit key Asian exporters hard. The administration imposed steep rates on Indo-Pacific economies, including Vietnam (46 percent), Thailand (36 percent), China (34 percent), Taiwan and Indonesia (32 percent), India (26 percent), South Korea (25 percent), Malaysia and Japan (24 percent), and the Philippines (17 percent), and framing these rates as proportional responses to persistent trade imbalances.
The policy does not distinguish between friends and competitors. Like the tariffs on steel, aluminum and autos, the new round of tariffs is universal and does not reflect any of the ‘flexibility’ Trump previously hinted at. This is a notable departure from his first term when he accommodated exemption requests from allies like Australia, South Korea, Canada, and Mexico.
Among Asian governments, only China seems certain to retaliate. Others appear likely to pursue a mixture of negotiation and adaptation strategies, although so far only India has a clear path toward negotiation. Thus, all the announced tariffs on Asia are expected to go into effect next week on April 9.
Media
Commentary
Asia Reacts to Trump’s Historic Tariffs
Trump’s Liberation Day Tariffs:
On April 2, U.S. President Donald Trump imposed 10 percent duties on all trading partners, effective April 5, plus higher market-by-market tariffs on many Asian nations, effective April 9, targeting partners that have the largest trade surpluses with the United States. President Trump is calling these tariffs “reciprocal,” although the methodology of tariff calculations remains unclear.
The latest tariffs will not stack atop Trump’s sector-specific duties, but will be applied alongside 25 percent tariffs on steel, aluminum, and autos. The administration also announced carve-outs for pharmaceuticals, semiconductors, and lumber as well as energy and other minerals not available in the United States.
The measures will hit key Asian exporters hard. The administration imposed steep rates on Indo-Pacific economies, including Vietnam (46 percent), Thailand (36 percent), China (34 percent), Taiwan and Indonesia (32 percent), India (26 percent), South Korea (25 percent), Malaysia and Japan (24 percent), and the Philippines (17 percent), and framing these rates as proportional responses to persistent trade imbalances.
The policy does not distinguish between friends and competitors. Like the tariffs on steel, aluminum and autos, the new round of tariffs is universal and does not reflect any of the ‘flexibility’ Trump previously hinted at. This is a notable departure from his first term when he accommodated exemption requests from allies like Australia, South Korea, Canada, and Mexico.
Among Asian governments, only China seems certain to retaliate. Others appear likely to pursue a mixture of negotiation and adaptation strategies, although so far only India has a clear path toward negotiation. Thus, all the announced tariffs on Asia are expected to go into effect next week on April 9.
Listen on:
Related Posts
TAG Managing Partner Amb. Kurt Tong Talks to BNN Bloomberg on U.S.-China London Trade Talks
TAG Partner Dan Kritenbrink Comments on U.S.-China London Trade Talks
The Asia Group Welcomes Colonel (Ret.) Shailender Arya as Senior Advisor
The Asia Group to Co-Host “The U.S.-Japan Partnership in the New Era” with Nikkei Forum on June 23