Wed, 09 Apr 2025

Wed, 09 Apr 2025 Trump's tariffs are a huge blow to Vietnam's economic ambitions

US exports have driven the economic success of countries like Vietnam and Cambodia.

* Vietnam and Cambodia have been hit by some of the highest tariffs: 46% and 49%.
* Thailand (36%), Indonesia (32%) and Malaysia (24%) also face significant tariffs, while the Philippines gets a tariff of 17% and Singapore of 10%.
* The region's economic growth story is imperilled by the punitive measures.
* Vietnam's "bamboo diplomacy" and ambitious plan to build an upper-income economy will be severely tested.
* Thailand's economy is in worse shape than Vietnam's, with underperformed growth for the past decade.
* Cambodia's government faces a significant political threat from the tariffs.
* Governments in South East Asia urge the US not to panic or retaliate but to negotiate and ease the tariff burden.
* The US appears unwilling to compromise, with Trump administration official Peter Navarro dismissing Vietnam's offer of zero tariffs as "meaningless".
* Trade studies suggest that between 7% and 16% of Vietnamese exports to the US are actually Chinese products trans-shipped through Vietnam.
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