The recent tariffs introduced by U.S. President Donald Trump have generated varied reactions from major trading partners, indicating a reluctance to engage in a full-scale trade conflict.
Trump unveiled the import duties, termed "reciprocal tariffs," ranging from 10% to 49%, essentially mirroring the actions he believes other countries have taken against the U.S. for years.
Leaders such as European Commission President Ursula von der Leyen criticized the tariffs as detrimental to the global economy, while Japanese and Korean officials expressed disappointment and called for protective measures to assist affected industries. The news caused stock markets in Asia to plummet on Thursday morning.
Thai Prime Minister Paetongtarn Shinawatra responded by expressing readiness to negotiate with the U.S. to establish a fair trade balance after Trump announced 36% tariffs on Thailand. She emphasized Thailand's commitment to collaborating with the U.S. for sustainable economic progress and advised local exporters to diversify markets to reduce dependence on a single market.
In India, industry experts view the new tariffs as a double-edged sword for the country. While Trump announced a 26% reciprocal tariff for India compared to higher rates for China, Vietnam, Bangladesh, and Thailand, it is expected to impact Indian businesses and jobs. However, the situation could also open doors for new opportunities as India fares better than its Asian counterparts.
Experts such as S.C Ralhan, head of the Federation of Indian Exports Organisations, believe that despite the challenges posed by the tariffs, India might benefit from global supply chain adjustments due to the protectionist tariff environment.
South and Southeast Asia face some of the most significant tariff increases, with countries like Vietnam, Cambodia, Bangladesh, and Sri Lanka facing high duties ranging from 37% to 49%. These tariffs will not only affect local exporters but also impact Chinese, Japanese, and South Korean companies that have moved production to Southeast Asia to navigate trade tensions during Trump's presidency.