Trump’s New Asia Tariff Strategy Creates Uncertainty for Exporters

President TRUMP has implemented new tariff rates targeting Southeast Asian exports to the U.S., with 20% for Vietnam and 19% for Indonesia and the Philippines. The move affects $352 billion in annual trade. A punitive 40% tariff on transshipped goods—products suspected of being Chinese imports rerouted through other countries—has left exporters scrambling for clarity.

The WHITE House aims to block Chinese supply chains from circumventing earlier tariffs, but no clear standards exist to determine what qualifies as transshipped. Companies remain in the dark about which ingredients, raw materials, or labor sources might trigger penalties. Economists and investors are left guessing as the administration fails to provide definitive guidelines.

Recent deals with Indonesia and Vietnam include threats of the 40% tariff but offer no concrete thresholds for local content. Thailand, yet to sign any agreement, has been warned to significantly increase local production to avoid penalties. The lack of transparency is destabilizing trade networks across the region.