Close Menu
World Economist – Global Markets, Finance & Economic Insights
  • Home
  • Economist Impact
    • Economist Intelligence
    • Finance & Economics
  • Business
  • Asia
  • China
  • Europe
  • Economy
  • USA
    • Middle East & Africa
    • Highlights
  • This week
  • World Economy
    • World News
What's Hot

China’s lead in global shipbuilding may already be fading, new data suggests

July 9, 2025

Why EU capitals are irate at German car swap scheme to swerve US tariffs

July 9, 2025

Indonesia to press on with US trade talks despite 32% tariff: ‘very optimistic’

July 9, 2025
Facebook X (Twitter) Instagram
Wednesday, July 9
Facebook X (Twitter) Instagram
World Economist – Global Markets, Finance & Economic Insights
  • Home
  • Economist Impact
    • Economist Intelligence
    • Finance & Economics
  • Business
  • Asia
  • China
  • Europe
  • Economy
  • USA
    • Middle East & Africa
    • Highlights
  • This week
  • World Economy
    • World News
World Economist – Global Markets, Finance & Economic Insights
Home » Trump ‘tariff wall’ takes shape around south-east Asia’s factories
USA

Trump ‘tariff wall’ takes shape around south-east Asia’s factories

adminBy adminJuly 9, 2025No Comments4 Mins Read
Share Facebook Twitter Pinterest Copy Link LinkedIn Tumblr Email VKontakte Telegram
Share
Facebook Twitter Pinterest Email Copy Link
Post Views: 7


Unlock the White House Watch newsletter for free

Your guide to what Trump’s second term means for Washington, business and the world

Donald Trump’s latest act of trade brinkmanship risks creating a “tariff wall” around the manufacturing hubs of south-east Asia, leading to higher prices and tough choices for US consumers and industry, analysts warn.

Ahead of Wednesday’s deadline to cut trade deals with Washington, the US president signalled a fresh round of tariffs on the south-east Asian countries that have become a conduit for Chinese manufacturers looking to escape US levies.

He threatened Cambodia, Indonesia, Laos, Malaysia and Thailand with duties ranging from 25 to 40 per cent in an apparent final bid to force them to the negotiating table ahead of a new August 1 deadline.

Last week Trump announced that Vietnam — the biggest destination for ‘rerouted’ Chinese goods — had accepted a 20 per cent tariff on its exports to the US, rising to 40 per cent for goods that had been “trans-shipped”.

The US administration expects its trade policies to raise more than $300bn in revenue by the end of the year, with Trump saying on Wednesday that “the big money will start coming in on August 1”.

Economists said that, while it was hard to predict at what level duties would finally settle, the outline of a new Asian tariff wall was beginning to take shape that would warp regional and global supply chains.

Some content could not load. Check your internet connection or browser settings.

Alicia García Herrero, chief economist for Asia Pacific at investment bank Natixis, said there was still time for south-east Asian countries like Cambodia, Malaysia and Thailand to negotiate a better deal with Washington.

She argued that Vietnam’s 20 per cent tariff deal did not necessarily have to become the benchmark for other south-east Asian countries that were less dependent on China for their manufacturing inputs, and less guilty of ‘rerouting’ goods to avoid US tariffs.

But whatever the final tariffs levels agreed, she added that they would force up prices for goods exported from south-east Asia which remains a key hub manufacturing for many consumer goods sold in the US.

“Manufacturing will get more expensive in Asia generally, but in principle the 20 per cent ‘tariff wall’ might be different across countries where inputs from China are smaller. I don’t think it has to be the same,” she said.

Some content could not load. Check your internet connection or browser settings.

Mark Williams, chief Asia economist at consultancy Capital Economics, which tracks ‘rerouting’ of Chinese goods through other Asian countries, agreed that there could still be a “fair degree of inconsistency” among tariff rates for countries and industries in the region.

However he added that Trump’s tariff wall would have regional supply chain impacts, including potentially slowing the shift of Chinese manufacturing firms into the 10 nations of the Asean regional grouping, which accelerated during Trump’s first term.

“A relatively high tariff on countries that could substitute for China in global manufacturing would probably slow the shift of firms out of China [because] there would be less urgency if the wedge between tariffs on China and other manufacturing economies was smaller,” Williams said.

But even if tariffs settled at a relatively high rate, they would fail to achieve the administration’s stated ambition of pulling manufacturing back into the US, Williams argued.

“The choice for consumers and firms in the US will be between paying more for a foreign-made product that now has an additional tariff, or going without. And in many sectors US production wouldn’t be competitive with imports, even if tariffs have to be paid,” he said. 

Some content could not load. Check your internet connection or browser settings.

Trump’s decision to slap punitive duties on countries that ‘trans-shipped’ Chinese goods will also be a huge opportunity for the supply chain management industry, according to Alex Capri, senior lecturer at the National University of Singapore’s business school.

“The new Trump tariffs will require importers to have reliable traceability practices to spare them from these arbitrary ‘trans-shipment tariffs’. This will result in a burgeoning services sector around the necessary technologies and verification processes,” he added.

Data visualisation by Jonathan Vincent. Additional reporting by James Politi in Washington



Source link

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email Telegram Copy Link
admin
  • Website

Related Posts

USA

Why EU capitals are irate at German car swap scheme to swerve US tariffs

July 9, 2025
USA

China producer price deflation deepens as trade war bites

July 9, 2025
USA

Donald Trump escalates trade war with plans for 50% copper tariff

July 8, 2025
USA

Trump administration looks to ban Chinese groups from buying US farmland

July 8, 2025
USA

Wall Street turns more bullish on US stocks despite Donald Trump’s tariff threats

July 8, 2025
USA

Inside Donald Trump’s latest tariff threats

July 8, 2025
Add A Comment
Leave A Reply Cancel Reply

Editors Picks

SECP records 35,000 company incorporations in FY2024-25 – Business & Finance

July 9, 2025

NSPC merges with and into PSPC – Business & Finance

July 9, 2025

Trump announces 50pc tariff on copper imports – World

July 9, 2025

Pakistan’s Rs7.2trn annual debt burden should finance growth-generating activities, says think tank – Pakistan

July 8, 2025
Latest Posts

PSX hits all-time high as proposed ‘neutral-to-positive’ budget well-received by investors – Business

June 11, 2025

Sindh govt to allocate funds for EV taxis, scooters in provincial budget: minister – Pakistan

June 11, 2025

US, China reach deal to ease export curbs, keep tariff truce alive – World

June 11, 2025

Subscribe to News

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

Recent Posts

  • China’s lead in global shipbuilding may already be fading, new data suggests
  • Why EU capitals are irate at German car swap scheme to swerve US tariffs
  • Indonesia to press on with US trade talks despite 32% tariff: ‘very optimistic’
  • Malaysia police hunt priest accused of molesting beauty queen at Hindu temple ‘blessing’
  • Hong Kong stocks fall on worries about China’s deflationary pressure

Recent Comments

No comments to show.

Welcome to World-Economist.com, your trusted source for in-depth analysis, expert insights, and the latest news on global finance and economics. Our mission is to provide readers with accurate, data-driven reports that shape the understanding of economic trends worldwide.

Latest Posts

China’s lead in global shipbuilding may already be fading, new data suggests

July 9, 2025

Why EU capitals are irate at German car swap scheme to swerve US tariffs

July 9, 2025

Indonesia to press on with US trade talks despite 32% tariff: ‘very optimistic’

July 9, 2025

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

Archives

  • July 2025
  • June 2025
  • May 2025
  • April 2025
  • March 2025
  • February 2025
  • January 2025
  • December 2024
  • June 2024
  • October 2022
  • March 2022
  • July 2021
  • February 2021
  • January 2021
  • November 2019
  • April 2011
  • January 2011
  • December 2007
  • July 2007

Categories

  • AI & Tech
  • Asia
  • Banking
  • Business
  • Business
  • China
  • Climate
  • Computing
  • Economist Impact
  • Economist Intelligence
  • Economy
  • Editor's Choice
  • Europe
  • Europe
  • Featured
  • Featured Business
  • Featured Climate
  • Featured Health
  • Featured Science & Tech
  • Featured Travel
  • Finance & Economics
  • Health
  • Highlights
  • Markets
  • Middle East
  • Middle East & Africa
  • Middle East News
  • Most Viewed News
  • News Highlights
  • Other News
  • Politics
  • Russia
  • Science
  • Science & Tech
  • Social
  • Space Science
  • Sports
  • Sports Roundup
  • Tech
  • This week
  • Top Featured
  • Travel
  • Trending Posts
  • Ukraine Conflict
  • Uncategorized
  • US Politics
  • USA
  • World
  • World & Politics
  • World Economy
  • World News
© 2025 world-economist. Designed by world-economist.
  • Home
  • About Us
  • Advertise With Us
  • Contact Us
  • DMCA
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.