Relief in Southeast Asia as Trump's tariffs level playing field

1/8/2025 16:47

Southeast Asian countries breathed a sigh of relief on Friday after the U.S. announced tariffs on their exports that were far lower than threatened and levelled the playing field with a rate of about 19% across the region's biggest economies.



U.S. President Donald Trump's global tariffs offensive has shaken Southeast Asia, a region heavily reliant on exports and manufacturing and in many areas boosted by supply chain shifts from China.



Thailand, Malaysia and Cambodia joined Indonesia and the Philippines with a 19% U.S. tariff, a month after Washington imposed a 20% levy on regional manufacturing powerhouse Vietnam,



Southeast Asia had raced to offer concessions and secure deals with the United States, the top export market for much of the region.



Its countries vied to stave off the prospect of losing market share to each other and of multinational firms shifting operations and orders elsewhere.



Malaysia's Trade Ministry said its rate, down from a threatened 25%, was a positive outcome without compromising on what it called "red line" items.



Thailand's finance minister said the reduction from 36% to 19% would help his country's struggling economy face global challenges ahead.