Sun, 06 Jul 2025

Sun, 06 Jul 2025 How Trump's tariff chaos could reshape Asia's businesses

The US president's tough stance on global trade is shaking up the region's crucial supply chains.

* GlobalFoundries' operations in Singapore are customizing chips to meet client needs, but also have to adapt to Trump's unpredictable tariff policy.
* The US government is planning to impose higher tariffs on up to 12 countries, but did not specify which ones will be affected.
* Semiconductors are currently exempt from tariffs, but their uncertainty is making it hard for businesses to plan for the future.
* GlobalFoundries has pledged to work with the Trump administration to move parts of its chip manufacturing and supply chain to US soil.
* The company's CEO says that "uncertainty is the new normal" and that businesses need to rethink buffers and lead times to account for volatility.
* Asian economies are heavily reliant on both China and the US, and shifts in global trading patterns will have a major impact on them.
* Countries like Vietnam have managed to strike deals with the US, but others like Cambodia face staggering 49% tariffs.
* The region's GDP is expected to be severely impacted by the extra costs of tariffs.
* Companies are rushing to fulfill orders, cut costs, and find new customers as they navigate a market in turmoil.
* Foreign investments could shift from Vietnam, Laos, and Cambodia to countries with lower tariffs like the Philippines, Singapore, Malaysia, and Indonesia.
* The chip industry is shifting towards regionalisation rather than globalisation, with companies looking for safer markets.
* Prof Dutt says that China may emerge as the "guardian of the world trading order" as the US becomes increasingly unreliable.
  >>