Trump’s tariff that defeats itself in Southeast Asia

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For years, Vietnam and many neighbors in Southeast Asia have seemed to have a profitable growth formula. They have already followed the export track by the likes of China. They were the great beneficiaries of rearranging the supply chains that Covid and the United States with Beijing, to become part of the “China and one” strategies for the United States and other companies that seek to obtain a second manufacturing base for export. Now these policies have returned to their bite. When Donald Trump revealed “Editing Day” DefinitionsSome of the highest were 46 percent in Vietnam, and 49 percent on Cambodia.

Although a significant rise in American definitions is expected to be a highly overburdened, the strike is to the southeast Asian manufacturing It was a surprise. Writing at financial times, Peter Navarro, Trump Commercial Adviser, Make up The White House wants to make countries like Cambodia and Vietnam choose between the United States and China, and “stop allowing China to evade the American tariff through exports by shipping across your countries.” Some of those familiar with the Trump administration insist that China is its main goal; Other affected countries are side effects.

The damage, though, is large-and far from one side. Great American companies including Apple, Nike Intel has a manufacturing or suppliers in Vietnam, following a strategy they believed that sound works and political meaning. While the efforts made to improve local capabilities in some extremist manufacturing may have an advantage for the flexibility of the supply chain, moreover, the economics of the T -shirt reformulation of the United States is doubtful.

China chose revenge, pledged to “Fighting to the end“If Washington has evolved forward with punitive drawings, it is likely to be obligated to stand against bullying by its largest individual-business partner-and has a greater area to harm the United States more than their smaller Asian counterparts. Southeast Asian countries may still exacerbate the confrontation, as they exchange them in their trading.

The Prime Minister in Malaysia, Anwar Ibrahim, aims to coordinate the ASEAN response, and a delegation from the Southeast Asian trading bloc Travel to Washington Tuesday. Anwar’s efforts may hinder the group’s economic diversity: Indonesia, for example, export more commodities to the United States; The Philippines has a current account deficit and export more services. Some members have already made their own sales to Washington. Vietnam offered to Remove all definitions We have to import warm words from the American president.

But Navarro and other American officials accused Vietnam and others of “cheating” through non -carrier barriers such as export subsidies, as well as being Chinese export platforms to evade definitions. It may limit any opportunity for the deals negotiating. Therefore, ASEAN countries must also try to increase the deepening of regional trade, as it was through its comprehensive regional economic partnership with China, Japan, South Korea, Australia, New Zealand, Asia and the Pacific CPTPP. They should also seek to improve free trade links with the European Union and Western Markets.

However, in the end, despite their deep American commercial ties, it is very difficult, for example, Cambodia or Vietnam to sparkle America on China, the economic giant on the threshold of their doors; Many of the recent growth in Vietnamese manufacturing exports comes from Chinese companies that transport operations to Vietnam. If the White House pushed them to Trump to choose, without making concessions, it may push them to the deepest in the arms of the country, which says its strict trade policy is mainly targeting.