Trump tariffs on Asia: Which economies were hit hardest?

August 1, 2025

President Trump's recent tariff announcements have significantly impacted Asian economies, with varying outcomes across the region. While key U.S. allies Japan and South Korea managed to negotiate reduced tariffs from 25% to 15%, other countries faced different results based on their strategic importance and trade relationships with the United States. Southeast Asian nations, whose economies are heavily export-dependent, experienced particularly dramatic impacts with final tariff rates ranging from 10% for Singapore to 40% for Laos and Myanmar.

Who is affected

Export-driven Asian economies reliant on U.S. markets
Traditional U.S. allies (Japan, South Korea, Taiwan, Australia)
Southeast Asian countries in the ASEAN bloc
China (though absent from the latest announcement)
India and other South Asian nations (Pakistan, Bangladesh, Sri Lanka)
Various Indo-Pacific nations (Afghanistan, Fiji, Nauru, Papua New Guinea, Kazakhstan)

What action is being taken

Countries are actively negotiating with the U.S. to reduce proposed tariff rates
Trade delegations are being sent to Washington to finalize deals before deadlines
New Zealand is requesting discussions with the U.S. ambassador and trade negotiator
U.S. and China are conducting ongoing diplomatic talks in various global locations
The U.S. and China are seeking a 90-day extension of their trade truce
Vietnam has established a benchmark for negotiations in Southeast Asia

Why it matters

The tariffs directly impact export-driven economies that rely on U.S. markets
Different tariff rates create competitive advantages or disadvantages between rival nations
The outcomes reflect the strategic importance of each country to U.S. interests
For some countries like Pakistan, lower tariffs may boost specific industries such as textiles
The tariffs are reshaping trade relationships across the entire Asia-Pacific region
Countries with military ties to the U.S. appear to have fared better in negotiations

What's next

Ongoing negotiations between Taiwan and Washington are expected to continue as Taiwan's president indicated current rates are "temporary"
New Zealand is planning to make a case for lower levies in upcoming discussions
The U.S. and China are working toward a 90-day extension of their trade truce set to expire on August 12
President Trump maintains the right to modify tariff rates based on future conversations or changing events

Read full article from source: BBC