Timeline

April 2nd: President Donald Trump announced reciprocal trade tariffs for 57 countries. The reciprocal tariffs mark a renewed escalation in global trade tensions, coming off the back of a fresh wave of tariff hikes targeting China, Canada, The European Union and other strategic partners. 

April 9th: Trump suspended the reciprocal tariffs for 90 days. A blanket 10% tariff was applied to all 57 countries except for China.

July 9th: The suspended reciprocal tariffs will come into effect unless trade deals are reached.

Tariff changes

A list of the the Asian countries facing the steepest reciprocal tariffs. For all these countries, with the exception of Myanmar, the US is either their no. 1  or significant export market. 

Download a PDF of the table.

Disproportionate impact on poorest nations

Trump has faced criticism for the substantial hike in tariffs of goods coming from the poorest nations in Asia. Cambodia faces 49%, Laos 48% and Myanmar 44% tariffs in July if trade deals cannot be negotiated. Young women in particular will pay the price in job losses as they account for the majority of the garment industry workforce in these countries.

The US tariffs  also come off the back of the termination of USAID funds. Cambodia saw $260 million of USAID cuts in February this year inclcuding a programme worth $10 million to advance labour and worker's rights. 

Perhaps the most troubling case is Myanmar, which is mired in civil conflict and is just recovering from an earthquake that has devastated the country.  

“It’s a perversity,” wrote the Financial Times, “to punish a nation that can’t afford to import much from the U.S. but depends on the garment industry for survival.”

Luz Maria de la Mora, UNCTAD's director of international trade and commodities has said all 44 economies listed by the UN as “least developed countries” should be exempted from the “reciprocal” tariffs should they come into force, as well as the 10 per cent baseline tariff that has already been applied. 

Winners and losers

• Bangladesh, India, and Pakistan could gain ground as alternative suppliers, especially as they have supply chains with less ties to China. And yet, none can fully replicate the scale, efficiency, and integrated infrastructure of China's textile and garment production.
• Mexico is also poised to benefit, with proximity and trade agreements making it an attractive alternative.
• China, whose apparel exports to the U.S. dropped from $27.4 billion in 2018 to $16.5 billion in 2024, continues to bear the brunt of Washington’s economic offensive.
• Vietnam and Cambodia, part of the so-called “China Plus One” strategy (where Chinese companies relocate operations to avoid tariffs), are now under scrutiny. 

Looking ahead

The 90-day pause ends on July 9, and many questions remain. Will countries strike deals in time? 

Cambodia has already offered to reduce tariffs on US goods from 35% to 5% in exchange for a discount on the reciprocal tariff. Vietnam has pledged to buy more Boeing planes and liquefied natural gas, and opened talks on purchasing C-130 cargo planes from Lockheed Martin. Last month, officials agreed to allow Elon Musk’s Starlink satellite internet service to operate in the country on a trial basis.

 Will the U.S. offer exemptions to Least Developed Countries, as urged by UNCTAD? What’s clear is this: Asia's garment industry is at a crossroads. For millions of workers and hundreds of billions in trade, what happens next in Washington could reshape the global clothing supply chain for years to come.