Trump’s Tariffs Reshape Asia’s Trade Landscape: Which Economies Were Hit the Hardest?

Hadisur Rahman, JadeTimes Staff

H. Rahman is a Jadetimes news reporter covering Asia

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Image Source: AFP via Getty Images

In a sweeping move with global economic implications, President Donald Trump’s administration has announced new tariffs targeting a wide range of Asian economies, reshaping trade relations across the Indo-Pacific. The measures, introduced on “Liberation Day” in April and revised by the end of July, have sent shockwaves through export-dependent nations, many of which scrambled to strike deals before the 1 August deadline.

Traditional US allies in Asia, including Japan, South Korea, Taiwan, and Australia, have managed to negotiate significant reductions in the proposed tariff rates.

Japan and South Korea, both vital to US industries through their automotive and semiconductor exports, successfully reduced an initial 25% tariff to 15%. These negotiations were finalized just days before the deadline, with Trump lauding the Japan agreement as the “largest trade deal in history.”

Taiwan, a major semiconductor supplier and key strategic partner, saw its tariff drop from 32% to 20%. However, concerns remain over potential sector-specific tariffs on chips.

Australia maintained its earlier 10% tariff rate, avoiding any increase. Meanwhile, neighboring New Zealand saw its rate increase from 10% to 15%, prompting official protests from Wellington.

While China was not directly included in the latest tariff list, ongoing diplomatic efforts point to tense negotiations. Washington is seeking commitments from Beijing on curbing fentanyl production, expanding US market access, and increasing purchases of American goods. In exchange, China hopes to secure continued access to critical US technologies. The two sides have now agreed to a 90-day extension of their existing trade truce.

India, though referred to by Trump as a “good friend,” was not spared. It faces a 25% tariff, down slightly from the originally proposed 27%, along with an unspecified penalty linked to its procurement of Russian oil and arms. Secretary of State Marco Rubio described India's ties with Moscow as a "point of irritation" in bilateral relations.

Southeast Asia, heavily reliant on exports, has experienced a range of outcomes. Initially hit with tariffs as high as 49%, ASEAN nations rushed to negotiate more favorable terms. Vietnam led the charge, cutting its rate from 46% to 20%, setting a precedent for other ASEAN members.

Most other countries Cambodia, Indonesia, Malaysia, the Philippines, Bangladesh, Sri Lanka, Thailand, and Vietnam now face tariffs between 19% and 20%.

Brunei stands slightly higher at 25%, while Laos and Myanmar are the hardest hit, each facing 40% levies. Analysts point to their weaker market access and stronger ties to China as possible reasons for the heavier penalties. Singapore remains largely unaffected, with its 10% tariff unchanged due to its status as a net importer of US goods.

In South Asia, Pakistan emerged relatively unscathed with a 19% tariff the lowest in the region. The decision comes amid warming ties between Islamabad and Washington, highlighted by Pakistan’s nomination of President Trump for the Nobel Peace Prize in June. This move is expected to bolster Pakistan’s textile exports, which account for 60% of its trade, primarily with the US.

Afghanistan, Fiji, Nauru, and Papua New Guinea each face 15% tariffs, while Kazakhstan has been assigned a 25% rate.

Experts caution that these tariffs are subject to change. Dr. Deborah Elms of the Hinrich Foundation noted, “The executive order allows the president to adjust tariffs at will. Agencies also have wide discretion in addressing trade obstacles.” As negotiations continue and global alliances shift, the full economic impact of Trump’s tariff strategy remains to be seen.