The United State President Donald Trump’s sweeping new tariff regime has significantly raised trade barriers for Asian economies, with countries like Bangladesh, Vietnam, Cambodia, and Sri Lanka among those facing the steepest tariff rates.

Trump has upended a 75-year-old global trading system by implementing a sweeping new tariff policy, introducing a baseline 10 per cent tariff on goods from all countries and higher reciprocal tariff rates for nations his administration claims have restrictive trade practices.

The new tariff structure, outlined in an executive order, aimed to counter what the Trump administration viewed as unfair trade policies, including currency manipulation, lax environmental and labour laws, and burdensome regulations that limit the US exports.

The US has announced 37 per cent tariff on Bangladesh and this could have major implications for its textile and garment sector, which relies heavily on access to the American market.

Cambodia tops the list with a 49 per cent tariff, followed closely by Vietnam at 46 per cent and Sri Lanka at 44 per cent.

China, the world’s largest exporter, will see a 34 per cent tariff, which rises to 54 per cent when combined with earlier duties imposed in February.

Thailand (36 per cent), Taiwan (32 per cent), and Indonesia (32 per cent) have also been hit hard under the new structure.

Meanwhile, India and South Korea, two other major Asian exporters, face tariffs of 26 per cent and 25 per cent, respectively, while Malaysia will see a 24 per cent duty.

The European Union will be hit with a 20 per cent tariff rate, but Russia was not on Trump’s tariff list, despite running a $2.5 billion goods trade surplus with the US in 2024, according to the US Trade Representative’s office.

Global reactions to trump’s tariffs

According to the reports from several global media, the US tariffs has sparked strong opposition from major economies, with several countries vowing to retaliate or seek negotiations to mitigate the impact.

China condemned the 34 per cent tariffs on its exports, calling them a violation of international trade rules and warning of countermeasures to protect its economic interests.

The European Union described the move as a ‘major blow to the world economy,’ with Brussels preparing countermeasures while expressing hope for diplomatic negotiations.

Germany also voiced concern over economic losses, urging the EU to respond firmly but cautiously.

Japan criticised the tariffs as ‘extremely regrettable’ and suggested they could breach World Trade Organization rules.

India acknowledged the potential damage but noted that the even higher tariffs imposed on China and Vietnam could create new opportunities for Indian exporters.

The United Kingdom, facing a 10 per cent tariff, pledged to negotiate a trade deal with the U.S. while reserving the right to retaliate if necessary.

France and Italy strongly opposed the measures, warning that a trade war would weaken Western economies.

Canada and Brazil took an even firmer stance, with Brazilian lawmakers passing an ‘Economic Reciprocity Law’ to counter the US tariffs.

Meanwhile, South Korea labelled the move a ‘global tariff war’ and convened emergency discussions to mitigate its impact through negotiations with Washington.

Australia denounced the tariffs as ‘unwarranted’ and harmful to its long-standing alliance with the United States.

Switzerland, Poland, and Taiwan also expressed deep regret, with Taiwan calling the 32 per cent tariff ‘highly unreasonable’ and pushing for urgent discussions with U.S. officials.

Scope for modifications

Trump’s executive order allows for adjustments based on economic and national security considerations.

The Secretary of Commerce and the US Trade Representative will oversee the impact of the tariffs and suggest modifications if required.

The order outlined key conditions under which tariffs could be adjusted:

If the policy fails to reduce the trade deficit or curb unfair trade practices, additional measures may be introduced.

If trading partners retaliate with their own tariffs, U.S. duties may be raised further.

If a country aligns its trade policies with U.S. interests, tariffs could be lowered.

If U.S. manufacturing continues to decline, duties may be further increased.