The company is trying to diversify from China. Now Trump's tariffs will hit those Asian alternatives

Several Asian countries made a comeback Thursday as they were attacked with some President Donald Trump’s highest tariffs, which now threatened Trump to benefit from investment after he imposed taxes on China during his first term.

Six of the nine Southeast Asian countries listed by Trump were subject to tariffs that were greater than 32% to 49% on Wednesday. By comparison, the EU level is 20% and Japan is 24%.

So far, Southeast Asian countries have not spoken of retaliatory tariffs.

“Ultimately, if you are a medium or smaller economy, it is not feasible because you are in a situation where you are seriously hurting yourself,” said Eric Miller, an international trade consultant and president of Rideau Potomac Strategy Group. Front burner Wednesday night.

The most exposed in Vietnam

For many countries, there is no choice but to lobby directly at a more favorable rate.
Vietnam, which slapped with a 46% tariff, demanded negotiations with Washington to reconsider its “unfair” duties.

It is one of many heavy exporters of the U.S. to the U.S. – gaining from the so-called “China plus one” strategy, where manufacturers shift certain output from China to countries near the region – will be under pressure.

Although China plus a trend began a few years ago with concerns about labor costs, geopolitical tensions between the two superpowers have exacerbated the trend, including Trump’s first tariffs on Beijing and a condemnation of the origins of the 19009 pandemic.

Vietnam, companies with large manufacturing operations like Apple, Nike and Samsung Electronics seem particularly exposed. According to a report by Bloombeg.com, 27% to 40% of merchandise between Nike, apparel companies GAP, Abercrombie, Adidas and Lululemon Source comes from Vietnam.

Last year, Vietnam's exports to the United States amounted to $142 billion, accounting for about 30% of its GDP.

Bangladesh’s clothing industry suppliers view Gap Inc. and Vans Parent VF Corporation as customers, told Reuters they began seeking government support hours after Trump’s lightning bolts. Bangladesh was hit by 37% of U.S. tariffs.

The ready-made garment industry is crucial to Bangladesh's economy, accounting for more than 80% of total export revenue, employs 4 million people, and accounts for about 10% of its annual GDP.

Anwar-ul Alam Chowdhury of apparel maker Evince (which counts Tommy Hilfiger and Levi Strauss & Co. both counted as customers) said he was concerned that India has gained more questions from U.S. suppliers since last year's political crisis in Bangladesh and will now benefit from a 27% share of the lower Trump Trump Tariff.

Asian textile producers suffer, Central America’s pain?

Sri Lanka, another major casualty in Trump's “reciprocity tariffs” move, now faces a 44% tariff.

About 40% of Sri Lanka's clothing exports to the United States, which helped island countries make $1.9 billion last year. Clothing is also Sri Lanka's second largest foreign exchange earner; the industry employs 300,000 employees.

Cambodia faces a 49% tariff that will hurt its apparel and footwear industry.

“The ultimate goal is to promote investment into the United States,” said Miller, an international trade adviser.

From a Washington perspective, failure to make nearly close commodities is also necessary. Miller noted that more modest tariffs were imposed on Honduras and El Salvador, where the textile and garment sectors were important job creators.

“Essentially, the basic incentive is to favor the production of Central American apparel,” he said.

Honduras and El Salvador, as well as other Latin American countries, appear to be working with the Trump administration, and another established priority (dispersing illegal immigrants) may make them good for the government.

Tariffs, key executive orders facing China

For China, Trump’s tariffs Salworth may stop an export-led recovery, as COVID-19 is no longer considered an international emergency.

China was hit by 34% tariffs, 20% he imposed earlier this year, bringing the total new tax to 54% and a 60% figure that Trump was threatened during the campaign.

Like exporters in other economies around the world, as part of the new 34% tax, will face a 10% benchmark tariff, with almost all goods shipped to the world's largest consumer economy before the remaining higher “reciprocal tariffs” from April 9.

Chad Brown, a senior fellow at the Peterson Institute for International Economics and chief economist at the Biden administration for the last year, said the average U.S. tariffs on Chinese goods would be 76%.

Despite the dazzling number of people, William Hurst, a professor of Chinese development at Cambridge University, said the impact on China is not uniform.

“Trump's tariffs certainly won't help Chinese companies and will cause some real pain in some sectors, but they don't have any certain mark on the Chinese economy,” Hurst said.

“From Europe to Southeast Asia and Africa, U.S. tariffs will stimulate more Chinese trade with elsewhere,” he added.

The imbalance that Hurst talked about could feel in another measure signed by Trump on Wednesday that ended a trade loophole called de minimis that left low-value packages from China and Hong Kong unauthorized into the U.S.

“The reason it disappeared is because companies such as Temu and Shein, founded in China, have become absolutely huge exporters from Chinese factories to American consumers, all of which are worth less than $800,” Miller told CBC.

Taiwan feels threatened by a superpower

For Taiwan (with 32% responsibility), Trump's announcement came hours after the end of Taiwan's latest war round. Despite the Taipei government's objection, Beijing claims that the territory is its own.

Taiwan's exports to the United States and its massive trade surplus with the United States increased as the U.S.'s U.S. tariffs and control over semiconductors and artificial intelligence-related products and Trump's first phase of tariffs and control over China.

Taiwan is home to major chip maker TSMC, which announced a $100 billion investment in the U.S. last month.

However, U.S. tariffs do not apply to semiconductors.

Taiwan's cabinet said in a statement that it will seek clarification and continue to hold talks with Washington.