U.S. President Donald Trump, on “Liberation Day,” reserved some of his highest tariff rates for Southeast Asia. Economists expected to see some targets, like manufacturing hub Vietnam, on Trump’s tariffs list. Other targets, like neighboring Cambodia, were more surprising—and all were shocked by the steep tariffs imposed on the region, often extending into the 40% range.
April 2 set off a scramble in Southeast Asia, which has relied on exports for growth. Both Vietnam and Cambodia have already offered to cut their tariffs on U.S. imports. But that’s unlikely to mollify everyone in the Trump administration. Trade advisor Peter Navarro has accused Vietnam of “non-tariff cheating,” pointing to the country’s value-added tax and its use by Chinese manufacturers to evade U.S. tariffs. Commerce Secretary Howard Lutnick also argues Vietnam’s large trade surplus means it’s ripping off the U.S.
