Trump’s New Reciprocal Tariffs on 90 Nations Raise Global Trade Concerns

New Tariff Policy Aims to Rebalance Trade

President Donald Trump has announced new reciprocal tariffs on imports from approximately 90 nations, imposing an across-the-board 10% tax on all imports to the United States, with certain countries facing even higher levies. According to the White House, this policy is designed to rebalance global trade flows by applying additional duties on imports from all trading partners, except where exemptions apply.

Describing the move as "Liberation Day," Trump stated that the new tariffs are necessary to eliminate the U.S. trade deficit with countries such as China and the European Union. While some nations will only face the universal 10% tariff, others will be subject to significantly higher rates. For example, Australian imports will remain at the 10% baseline, whereas Chinese imports will be taxed at 34%.

The White House has justified the tariff rates by using a formula that accounts for various trade practices it deems unfair, including currency manipulation, existing tariffs, and other trade barriers imposed by foreign governments.

(Full List of the 90 Countries affected by the current U.S Reciprocal Tariff policies are attached at the end of the article.)

The new tariff policy has significant implications for Southeast Asian economies. A detailed chart accompanying the White House report highlights the affected nations, with Singapore and East Timor being the only regional countries subject solely to the 10% base tariff. Singapore, which has a Free Trade Agreement (FTA) with the United States, benefits from some protection against additional tariff hikes. However, even this baseline levy is expected to have economic repercussions, given that the U.S. recorded a $2.8 billion goods trade surplus with Singapore last year, an 84.8% increase from 2023, according to the U.S. Trade Representative.

East Timor, meanwhile, faces limited impact due to its relatively small trade volume with the United States, thus receiving only the 10% base tariff.

Statements by The White House

The White House published a statement on April 2, 2025, justifying the tariffs by citing persistent U.S. trade deficits. The administration argues that these deficits have led to a weakened manufacturing base, undermined domestic supply chains, and left the defense-industrial sector reliant on foreign adversaries. The White House further claims that existing trade relationships are unbalanced due to non-reciprocal tariffs and economic policies that artificially suppress domestic wages and demand for U.S. exports.

The statement also asserts that the post-war international economic system was based on three incorrect assumptions:

1. The U.S. would lead the world in reducing tariffs and non-tariff barriers, prompting other nations to follow.

2. This liberalization would result in greater economic convergence and increasing domestic consumption among U.S. trading partners.

3. The U.S. would not experience large and persistent goods trade deficits.

However, the announcement has sparked international condemnation, with concerns that it may escalate global trade tensions. Several Southeast Asian nations have issued statements criticizing the policy and seeking diplomatic alternatives. The new tariffs are set to take effect on April 10, 2025, following further review of individual country rates.

Economic Ramifications and Expert Analysis

Malaysian-American economist, Woo Wing Thye told CNA that the U.S. appears to be targeting Indochina countries due to their strong trade ties with China. Given Washington’s view of Beijing as its "number one threat" in global trade, these tariffs could serve as an extension of U.S. economic pressure on China. Woo warned that such actions risk pushing Southeast Asian nations closer to Beijing, despite some countries' prior efforts to remain neutral in the U.S.-China trade war.

Woo, who also serves as vice president of the United Nations Sustainable Development Solutions Network’s Asia office, noted that some affected nations, particularly Vietnam and Cambodia maintain significant trade surpluses with the U.S. and have benefited from the China Plus One strategy. This strategy encourages companies to diversify supply chains away from China by shifting production to neighboring countries, potentially disguising the origin of goods to bypass previous U.S. tariffs on China.

Vietnam’s trade surplus with the U.S. reached a record $123 billion in 2024, placing it behind only China, the European Union, and Mexico in terms of trade imbalances with Washington. Woo noted that part of this surplus is linked to companies that relocated operations from China to Vietnam to sidestep tariffs.

Meanwhile, economist Jayant Menon, a visiting senior fellow at the ISEAS-Yusof Ishak Institute in Singapore, analyzed the tariff calculations, suggesting they are based on the ratio of the trade deficit to total exports to the U.S., then halved, with a minimum tariff of 10%. He noted that this methodology disproportionately affects Indochina nations, many of which are among the poorest in the Mekong region but maintain high trade surpluses with the U.S.

“The bottom line is that these tariffs are arbitrary and detrimental to global trade. They represent a new height in the weaponization of trade policy, which could prompt trading partners to rethink their reliance on the U.S. rather than China,” Menon warned.

As the April 10 deadline approaches, global markets and policymakers remain on edge, closely monitoring the impact of the new tariffs and potential retaliatory measures from affected nations.

List of Countries affected by the Reciprocal Tariff Policies

Below is a list of countries affected by the United States' Reciprocal Tariff Policies. The countries are organized alphabetically on the left and by tariff percentage on the right.