Southeast Asian countries found themselves grappling with economic shockwaves on Thursday as they faced some of the highest tariffs imposed by the U.S. President Donald Trump. These hefty duties now threaten the economies that previously thrived on investments since Trump’s first-term tariffs on China redirected manufacturing to the region.
Vietnam, hit with a staggering 46% tariff, called for immediate discussions with Washington, deeming the duties “unfair.” Meanwhile, Thailand’s Prime Minister Paetongtarn Shinawatra voiced her intention to negotiate a reduction from the unexpected 37% rate, significantly higher than the anticipated 11%.
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Both nations have been major beneficiaries of the “China+1” strategy, where manufacturers diversified their production away from China to nearby countries to dodge earlier U.S. tariffs.
“We must sit down for detailed negotiations,” stated Shinawatra. “Missing our GDP target is not an option.”
Of the nine Southeast Asian countries targeted by Trump, six received steep tariffs ranging from 32% to 49%. In contrast, the European Union faces a 20% duty, Japan 24%, and India 27%. Despite the blow, none of the affected Southeast Asian countries have announced any plans for retaliatory measures.
