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2025-04-20

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Southeast Asia's six countries face high tariffs of 32% to 49% imposed by the United States.

Southeast Asia's six countries face high tariffs of 32% to 49% imposed by the United States.
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The Vietnamese government has announced the establishment of a special task force to respond to the United States imposing tariffs of up to 46%. Other Southeast Asian countries, including Thailand and Malaysia, also plan to negotiate with the U.S. Vietnam's exports to the U.S. reached $142 billion last year, accounting for nearly 30% of its GDP; meanwhile, Thailand faces a 37% tariff, and the government hopes to renegotiate. Although Cambodia is hit by a high tax rate of 49%, affecting its apparel and footwear industry, it is currently unable to conduct effective negotiations. Countries are striving to seek ways to mitigate the impact of tariffs to maintain economic growth targets.

The Vietnamese government announced on April 3 that it will establish a special task force to respond to the high tariffs imposed by U.S. President Trump. Other Southeast Asian countries also plan to negotiate with Washington. Countries such as Vietnam and Thailand are key exporters to the U.S. As Trump imposed tariffs on China during his first term, many Chinese and other international manufacturers have shifted production to these regions, benefiting significantly. Currently, among the nine Southeast Asian countries listed by Trump, six have tariffs that exceed expectations, ranging from 32% to 49%, which is significantly different compared to the EU's only 20% tariff. So far, no Southeast Asian country has indicated it will implement retaliatory tariffs.

The special task force of the Vietnamese government aims to address the high tariff of 46%, which poses great pressure on locally large-scale producing companies. Last year, Vietnam's exports to the U.S. reached $142 billion, accounting for nearly 30% of its GDP. During an emergency cabinet meeting, the Vietnamese Prime Minister directed the establishment of this task force and emphasized that the government would maintain the annual growth target of 8%. He pointed out that Vietnam's export-oriented growth model has always been very successful, attracting a large number of multinational companies; however, the 46% U.S. tariff will directly challenge this model. Experts predict that both sides will continue to negotiate to mitigate the impact of the new tariffs.

In Thailand, the Prime Minister expressed hope that the U.S. would lower the 37% tariff on the country and stated that in-depth discussions on negotiation details are necessary to avoid impacting economic growth targets. The country's economic growth has lagged behind other regions, only growing by 2.5% last year. The Thai Minister of Commerce emphasized that the government is well-prepared for negotiations and is confident about the prospects for future talks.

Malaysia is subject to a 24% tariff from the U.S., and the government has stated it will not take retaliatory measures and will actively seek solutions that conform to the spirit of free and fair trade. In contrast, Cambodia faces a high tariff of 49%, which will severely impact its garment and footwear industries and significantly reduce its attractiveness to foreign investment. An investment advisor stated that Cambodia has almost no bargaining chips in negotiations and faces significant challenges.

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