Trump’s tariffs are a huge blow for Vietnam’s economic ambitions

US President Donald Trump’s broad tariffs tariffs tariffs tariffs are now effective – and outside China, no other region has become difficult like South East Asia.

Near the top of the list is Vietnam and Cambodia which are affected by some of the highest tariffs: 46% and 49%. Further below are Thailand (36%), Indonesia (32%) and Malaysia (24%). The Philippines get a tariff of 17%and Singapore of 10%.

This is a major setback for the highly dependent field on exports. In the last three decades, its widespread economic growth is largely inspired by its success in selling its products to the rest of the world, especially for America.

Export to the US contributes about 30% of Vietnam’s GDP and 25% of Cambodia.

That development story is now affected by punitive measures being planted in Washington.

The long-term effects of these tariffs, assuming that they will remain in place, will vary, but will definitely create particularly major challenges for the governments of Vietnam, Thailand and Cambodia.

Vietnam’s “Bamboo Diplomacy”, where it attempts to befriend all and balance relations with both China and America, will now be tested.

Under the leadership of the new Communist Party General Secretary for Lam, Vietnam has launched an ambitious plan to create an upper income, knowledge-technical-based economy by 2045. It is targeting for an annual growth rate of more than 8%.

Exporting more to the US, already its largest market, was central for that scheme.

This was also the main reason that Vietnam agreed to extend his relationship for a comprehensive strategic partnership in 2023.

The Communist Party, which tolerates a little dissatisfaction and has no formal political opposition, depends on its economic vows for its validity. Already seen as very ambitious by many economists, now it will be even more difficult to meet.

Less than Thailand Vietnam – less than 10% of GDP depends on American exports – but the Thai economy is in a very poor size, weakened for the last decade. The Thai government is trying to find ways to raise economic development, recently trying but has failed to legalize gambling, and this tariff is another economic shock that it cannot tolerate.

For Cambodia, tariff is probably the biggest political threat to the region.

Hun Manet’s government has proved ruling like his father Hun Sen, which he succeeded two years ago, but it is unsafe.

Cambodia’s economic privileges such as monopoly or land concessions have been offered to hold the power of the Hun family, but it has helped to create a glow of property development, which are no longer selling, and a mass of complaints on the expansion of the land.

The apparel area, which employs 750,000 people, has been an important social security valve, which gives stable income to the poorest of Cambodia. Thousands of those jobs are now likely to be lost as a result of President Trump’s tariff.

Unlike China, who is back with its own levy, the official message of governments in Southeast Asia is not nervous, not vengeance, but interacts.

Vietnam has sent Deputy Prime Minister Ho Duke Folk to Washington to fulfill his country’s case, and offered to eliminate all tariffs on US imports. Thailand has planned to send its Finance Minister to make a similar appeal, and offer to reduce its tariffs and buy more American products such as food and aircraft.

Malaysian Prime Minister Anwar Ibrahim is also going to Washington, although the US is making only 11% of the total of Malaysia with exports, its country is less affected than some of its neighbors.

However, the Trump administration appears to be in any mood to compromise.

Peter Navarro, one of the main consultants behind the business and manufacturing of President Trump, and the main thinkers behind the new policy, said in an interview on Monday that Vietnam’s zero tariffs were offered in vain, as it would not address a deficit in business where Vietnam sells $ 15 price to America for every $ 1.

He accused Vietnam of placing several non-tariff barriers for the US imports, and said that all Vietnamese exports in the US were actually Chinese products, trans-ship through Vietnam.

The ratio of Vietnamese exports that are being built or trans-showing there to avoid American tariffs on China is difficult to assess, but wide trade studies placed it between 7% and 16%, not one-third.

Like Vietnam, the government of Cambodia has appealed to the US to postpone the tariff, while it tries to negotiate.

The local American Chamber of Commerce has called 49% of tariffs to demolish, which is an issue that the Cambodian apparel industry, the country’s largest employer, will be badly affected, but that any tariff level, although high, will look at the manufacture of clothes and shoes in the US.

Perhaps the most perverted tariff rate is 44% applied to Myanmar, a country located in a civil war that has no ability to buy more American goods.

American exports create only a small ratio of Myanmar’s GDP, which is less than 1%.

But in Cambodia, the region, mainly clothing, is one of the few that provide a stable income to poor families in cities in Myanmar.

In the highest irony, Trump is still a popular person in the region.

He has been widely praised in Vietnam for his hard, transaction approach to foreign policy, and former Strongman Hun Sen of Cambodia, still the main power behind the curtain, has long sought close personal relations with the US President, proudly posting a selfie with him in his first meeting in 2017.

Only last month Cambodia was praising Trump The American media network Voice of America and Radio Free Europe, which often leads to the ideas of Cambodian dissatisfaction.

Now Cambodia, like many of his neighbors, finds himself in a long queue of supplements that begs with him to reduce their tariff burden.