A Look at the Top 10 Countries Facing US Tariffs
The global trade landscape is bracing for significant shifts as the United States prepares to implement new and escalated tariffs on a range of imported goods from numerous countries, effective August 1, 2025.
These measures, stemming from the administration's "reciprocal tariff" policy and efforts to address perceived trade imbalances, are expected to have considerable economic ramifications for affected nations.
The U.S. has outlined substantial import levies to various countries, with warnings of further escalation if bilateral trade deals are not reached. While some agreements have been secured, the broader impact of these tariffs is a growing concern for global economic stability.
The new tariffs are being presented by the U.S. as a means to achieve "common sense" trade practices and rectify existing trade imbalances. However, these unilateral decisions could lead to retaliatory measures, further disrupting international supply chains and potentially triggering an economic downturn.
Below is a table highlighting 10 of the countries most significantly impacted by the latest round of U.S. tariffs, based on announced rates and the general sentiment from their governments:
Top 10 Countries Impacted by New US Tariffs (Effective August 1, 2025)
Country | Announced Tariff Rate (%) | Key Exports to US (Examples) | Noteworthy Response/Impact |
Brazil | 50 | Agricultural products, metals | Strong condemnation, vows of retaliation. |
Myanmar | 40 | Clothing, leather goods, seafood | Government pursuing negotiations. |
Laos | 40 | Shoes, wood furniture, electronics | |
Cambodia | 36 | Textiles, clothing, shoes, bicycles | Optimistic about further negotiation. |
Thailand | 36 | Computer parts, rubber, gemstones | Continuing to push for negotiations. |
Bangladesh | 35 | Clothing | Hopes to negotiate for a better outcome. |
Serbia | 35 | Software/IT services, car tires | |
Indonesia | 32 | Palm oil, cocoa butter, semiconductors | Optimistic about striking a deal. |
Japan | 25 | Autos, auto parts, electronics | Expressed regret but determined to continue negotiations. |
South Korea | 25 | Vehicles, machinery, electronics | Accelerating negotiations for a mutually beneficial deal. |
Note: The tariff rates and specific impacts are subject to ongoing negotiations and may change.
The imposition of these tariffs underscores a continued shift in global trade policy, moving away from multilateral agreements towards more bilateral approaches. While the U.S. aims to rebalance trade, the ripple effects are expected to be felt across various industries and economies worldwide, leading to uncertainty and prompting affected nations to seek alternative trade partners or adjust their production strategies. Many countries, including Indonesia, remain hopeful that continued negotiations will lead to more favorable outcomes before the August 1 deadline.
New US Tariffs Spark Brazil Economic and Political Tensions
Brazil is facing significant economic headwinds as the United States, under President Donald Trump, has announced a steep 50% tariff on "any and all" imports from the South American nation, set to take effect on August 1st. This unprecedented move, far exceeding previous tariff rates, is widely seen as a direct response to Brazil's ongoing legal proceedings against former President Jair Bolsonaro, a political ally of Trump.
The announcement has ignited a diplomatic firestorm, with Brazilian President Luiz Inácio Lula da Silva strongly condemning the tariffs and vowing to implement Brazil's Law of Economic Reciprocity, which allows for retaliatory trade measures. Lula asserted Brazil's sovereignty, stating, "Brazil is a sovereign nation with independent institutions and will not accept any form of tutelage." He also refuted Trump's claim of a U.S. trade deficit with Brazil, citing U.S. government statistics that show a surplus for the U.S. in goods and services over the past 15 years.
While Trump's administration has previously justified tariffs on the basis of trade imbalances or national security, this latest action against Brazil appears to be primarily driven by political motives, specifically in support of Bolsonaro, who faces charges related to an alleged coup attempt after his 2022 election loss. Trump has publicly defended Bolsonaro, calling the trial a "witch hunt" and demanding its immediate cessation.
The tariffs pose a substantial challenge to Brazil's economy, which relies heavily on exports, with the U.S. being a major trading partner. In 2024, Brazil's goods exports to the U.S. totaled approximately $42.3 billion, making the U.S. one of Brazil's top trading destinations. Industrial products constitute a significant portion of these exports.
Key Brazilian Exports to the United States (2024 Data)
Product Category | Value (USD Billion) |
Mineral Fuels, Oils, Distillation Products | $7.96 |
Iron and Steel | $5.72 |
Machinery, Nuclear Reactors, Boilers | $3.65 |
Aircraft, Spacecraft | $2.69 |
Coffee, Tea, Mate and Spices | $1.94 |
Pulp of Wood, Fibrous Cellulosic Material | $1.69 |
Wood and Articles of Wood | $1.62 |
Electrical, Electronic Equipment | $1.41 |
Vegetable, Fruit, Nut Food Preparations | $1.25 |
Meat and Edible Meat Offal | $1.07 |
Source: Data based on 2024 Brazilian export figures to the US.
The 50% tariff could significantly impact these sectors, leading to reduced demand for Brazilian goods in the U.S. market and potentially affecting Brazilian industries, jobs, and overall economic growth. While some analysts suggest Brazil might seek to diversify its export markets, the immediate impact on specific industries, such as steel, crude oil, and coffee, could be severe.
The situation has also reverberated at the recent BRICS summit in Brazil, where member nations, including Russia, China, and India, condemned Trump's tariff moves. In response, Trump has threatened an additional 10% tariff on all BRICS-aligned countries, further escalating global trade tensions.
The escalating rhetoric and reciprocal threats highlight a new era of trade policy, where political considerations appear to be heavily influencing economic decisions. Brazil now faces the difficult task of navigating this complex landscape, balancing its sovereign legal processes with the potential economic repercussions of continued trade friction with the United States. The coming weeks leading up to the August 1st deadline will be critical in determining the full extent of the impact on Brazil's economy and its trade relations with the U.S.
Myanmar Faces Significant Impact from New US Tariffs
Myanmar is among several nations bracing for new tariffs imposed by the United States, with a substantial 40% import duty set to take effect on August 1st. This move by the U.S. government is part of a broader strategy to address perceived trade imbalances and encourage more "balanced and fair" trade relationships.
The announcement of these tariffs has generated considerable concern within Myanmar, particularly for its key export sectors. While the exact long-term implications are still unfolding, the initial response from Myanmar's military government indicates a willingness to engage in negotiations to mitigate the impact.
Key Details of the Tariffs on Myanmar
The newly announced 40% tariff on imports from Myanmar marks a significant increase from previous rates. This decision comes amidst existing challenges for the Myanmar economy, including international sanctions, power outages, fuel shortages, and foreign currency controls.
Myanmar's primary exports to the U.S. that are likely to be heavily affected include:
Clothing/Garments: The garment industry is a major employer in Myanmar, with nearly 800,000 workers, predominantly young women. A 40% tariff could severely impact the competitiveness of Myanmar-made apparel, potentially leading to reduced orders and factory closures.
Leather Goods: This sector also faces significant challenges as the increased tariffs could make their products less attractive to U.S. importers.
Seafood: While perhaps not as dominant as garments, seafood exports will also face the higher duty, potentially impacting the livelihoods of those in the fishing and processing industries.
The Myanmar Garment Manufacturers Association (MGMA) has voiced concerns that the tariffs will exacerbate existing difficulties for businesses already struggling to remain operational.
Broader Context of US Tariffs
Myanmar is not alone in facing new or increased tariffs from the United States. The U.S. has announced similar measures for a range of countries, with varying tariff rates. The overarching goal, as stated by U.S. officials, is to rectify what they deem as "unsustainable trade deficits" and to incentivize foreign companies to "build or manufacture" products within the United States.
Many of the affected countries, including Myanmar, have expressed their intent to engage in negotiations with the U.S. to seek a more favorable outcome. However, the U.S. administration has indicated a firm stance on the August 1st implementation date, stating that no extensions will be granted.
Key Myanmar Exports to the United States (Pre-Tariff Impact)
Export Category | Specific Products (Examples) |
Apparel & Textiles | Clothing (knit and non-knit), other made textile articles, worn clothing |
Leather Goods | Leather articles, travel goods, handbags |
Footwear | Shoes (including those with textile uppers) |
Seafood | Fish, crustaceans, mollusks, aquatic invertebrates |
Electrical & Electronic Equipment | Electrical and electronic equipment |
Furniture | Furniture, lighting signs, prefabricated buildings |
Other Manufactured Articles | Miscellaneous manufactured articles, plastics, optical/photo/technical/medical apparatus, toys, games, sports requisites |
Agricultural Products | Edible vegetables and certain roots and tubers, coffee, tea, mate, spices |
Note: While Myanmar's trade volume with the U.S. is not as large as with some other partners, these exports represent significant sectors for the Myanmar economy and its workforce. The recent tariffs are expected to have a notable impact on these industries.
The imposition of these new tariffs by the U.S. underscores a shifting landscape in global trade relations, prompting affected countries like Myanmar to re-evaluate their export strategies and intensify diplomatic efforts to mitigate the economic repercussions.
Laos Braces for Significant Impact from New US Tariffs
Laos is among 14 countries that have received official notification from the United States regarding new "reciprocal tariffs" set to take effect on August 1st. The landlocked Southeast Asian nation faces a substantial 40% import duty on its goods entering the U.S., a rate that, while slightly reduced from an earlier proposal, still poses a significant challenge to its burgeoning export sectors.
These tariffs are part of a broader U.S. strategy to address what it perceives as trade imbalances and promote more "balanced" trade relationships. While the direct bilateral trade volume between Laos and the U.S. is relatively small, the ripple effects on global supply chains and the overall demand from its larger trading partners are expected to have a considerable indirect impact on the Lao economy.
Details of Tariffs and Key Exports Affected
The 40% tariff rate for Laos is a reduction from the 48% rate initially proposed in April under the "Liberation Day" policy. However, this still places Laos among the countries facing the highest new tariffs from the U.S. The U.S. administration has emphasized that these rates could be adjusted further, upward or downward, depending on the nature of future trade relationships and whether retaliatory tariffs are imposed by the affected nations.
Key exports from Laos to the U.S. that are likely to be most impacted by these new duties include:
Shoes with textile uppers / Footwear: This is a significant export category for Laos, and the increased tariff will make Lao-made footwear considerably more expensive for American consumers, potentially leading to a decline in orders.
Wood furniture: Laos has been developing its furniture manufacturing sector, and the tariff could hinder its growth and competitiveness in the U.S. market.
Optical fibers and optical fiber bundles: These high-value products have seen strong growth in exports to the U.S., and the tariff could severely affect this industry.
Electronic components: As Laos integrates into regional supply chains, tariffs on electronic components could disrupt its participation and reduce its attractiveness as a manufacturing hub.
Coffee: While not as dominant as other exports, high-quality Lao coffee could also face challenges in maintaining its market share in the U.S. due to increased costs.
Economists in Laos have warned that while the direct impact of the tariffs might be minor given the relatively low value of bilateral trade, the indirect impacts from a projected decline in demand from major trading partners like China, Thailand, and Vietnam – who are also facing tariffs or broader global economic slowdowns – could be "enormous."
Broader Context of US Tariffs
Laos is one of over 20 countries worldwide that have received new tariff letters from the U.S. The stated intention behind these sweeping measures is to correct trade deficits and encourage manufacturing within the United States. The August 1st deadline for implementation has put pressure on all affected nations to engage in negotiations.
Many countries, including those in Southeast Asia, are scrambling to develop strategies to mitigate the economic fallout. The U.S. has indicated a firm stance, suggesting that any reciprocal tariff increases will result in even higher U.S. duties.
Key laos Exports to the United States (Pre-Tariff Impact)
Here's a table of key Lao exports to the United States (based on recent historical data prior to the most recent major tariff announcements):
Key Laos Exports to the United States (Pre-Tariff Impact - based on 2023/2024 data)
Commodity Category | Specific Products (Examples) | Value (Approximate, Varies by Year/Source) | Notes |
Electronics & Electrical Equipment | Electrical appliances, electronic components, optical fibers, solar panels, semiconductors | Significant, often a top export category (e.g., $479.63M in 2024 imports by US from Laos) | This category has shown significant growth in recent years. |
Footwear | Shoes with textile uppers, leather footwear | Substantial (e.g., $30.59M in 2023, $23.50M in 2024 imports by US from Laos) | A consistent export, often including various types of shoes. |
Furniture | Wood furniture, mattresses, lighting signs, prefabricated buildings | Notable (e.g., $6.16M in 2023, $80.96M in 2024 imports by US from Laos) | Wood furniture is frequently cited as a key export. |
Textiles & Apparel | Clothing (knit and non-knit), headgear, other made textile articles | Significant (e.g., Headgear: $22.88M in 2023, Clothing: $8.83M in 2023) | Includes various garments and textile products. |
Optical & Technical Apparatus | Optical, photo, technical, medical apparatus, corrective lenses, goggles | Growing (e.g., $3.35M in 2023, $143.87M in 2024 imports by US from Laos) | Includes specialized equipment. |
Inorganic Chemicals | Inorganic chemicals, precious metal compounds, isotopes | Consistent (e.g., $8.69M in 2023, $18.87M in 2024 imports by US from Laos) | This can include a range of chemical products. |
Other Notable Exports | High-quality Lao coffee, toys, games, sports requisites, pearls, precious stones, metals, selected agricultural products | Smaller values, but consistently exported | Laos is known for its coffee. |
Important Considerations:
Data Variation: The exact values can vary significantly depending on the reporting agency (e.g., Lao Ministry of Industry and Commerce, US import data).
"Pre-Tariff Impact": This table reflects the trade landscape before the significant tariff changes announced in April and July 2025. The aim is to show what was being exported before these new, higher tariffs (e.g., 40%) were imposed or widely anticipated to take full effect.
Trade Deficit Discrepancies: There can be differences in how Laos and the US calculate their trade figures, leading to varying reported trade balances.
The new tariffs are expected to significantly impact many of these export categories, potentially leading to higher prices for US consumers and a shift in sourcing for American buyers.
The situation remains fluid as the August 1st deadline approaches, and many countries, including Laos, are expected to intensify their diplomatic efforts to minimize the adverse economic consequences of these new U.S. tariffs.
Cambodia Faces Economic Headwinds from New US Tariffs
Cambodia is among 14 nations that have received official notification from the United States regarding new "reciprocal tariffs" set to take effect on August 1, 2025. While Cambodia successfully negotiated a reduction from an initial proposed rate of 49% down to 36%, this substantial import duty still poses significant risks to the country's export-driven economy, particularly its vital garment, footwear, and travel goods (GFT) sector.
The U.S. government's decision is part of a broader push to address perceived trade imbalances and encourage more "balanced and fair" trade relationships. President Donald Trump, in a letter to Prime Minister Hun Manet, emphasized that even the 36% rate is "far less than what is needed to eliminate the trade deficit disparity" with Cambodia, citing years of what the U.S. considers "non-reciprocal" trade practices and trade barriers.
Impact on Key Cambodian Exports
The new 36% tariff will apply to all Cambodian products entering the U.S., separate from existing sectoral tariffs. This move is expected to have a profound impact on Cambodia's primary export industries, which are highly reliant on the American market. The U.S. was Cambodia's largest export destination in 2024, with exports amounting to $9.9 billion, largely consisting of GFT products.
Key Cambodian exports that will be heavily affected include:
Garments and Textiles: This sector is the backbone of Cambodia's economy, employing hundreds of thousands of workers, predominantly women. Industry insiders estimate that exports could decline by 15% to 30%, with many factories facing operational uncertainty or potential closure. Buyer confidence has been dented, leading to a reluctance to place future orders.
Footwear: Similar to garments, the footwear industry will face significant pressure due to increased costs, making Cambodian shoes less competitive in the U.S. market.
Travel Goods: This relatively newer export sector will also be subject to the higher tariffs, impacting its growth potential and market share in the U.S.
Bicycles and Agricultural Products: Other diversified exports will also see their competitiveness diminished.
Concerns are widespread among workers who fear job losses, reduced wages, or increased pressure to work faster to offset the tariff impact. A survey by Better Factories Cambodia revealed that half of 203 GFT factories face operational uncertainty beyond the next three months.
Broader Context and Future Outlook
The U.S. has warned that any reciprocal tariff increases by Cambodia on American imports would result in even higher U.S. duties. However, the U.S. has also stated that tariff rates could be adjusted downward if Cambodia removes its trade barriers and fosters a more reciprocal trade environment. The option for Cambodian companies to relocate manufacturing to the U.S. to avoid tariffs has also been presented.
While Cambodian officials have hailed the reduction from 49% to 36% as a "huge victory" in negotiations, many analysts and business leaders warn that the rate remains considerably high, especially when compared to competitors like Vietnam, which secured a 20% rate. This disparity could encourage some manufacturers to shift production to countries with lower tariffs, such as Egypt (10% tariff rate).
Negotiations are still ongoing, and Cambodia is expected to continue advocating for a lower tariff rate before the August 1 deadline. The long-term implications for Cambodia's economic growth and stability will depend heavily on the final outcome of these discussions and the country's ability to diversify its export markets and enhance its competitiveness.
Key Cambodia Exports to the United States (Pre-Tariff Impact)
Based on recent historical data (primarily 2023 and 2024), here's a table of Cambodia's key exports to the United States:
Key Cambodia Exports to the United States (Pre-Tariff Impact - based on 2023/2024 data)
Commodity Category | Specific Products (Examples) | Value (Approximate, Varies by Year/Source) | Notes |
Textiles & Apparel | Knit/crochet clothing, non-knit clothing, headgear, other textile articles | Billions of USD (e.g., ~$13.92 billion for GFT in 2024 total exports) | This has historically been Cambodia's largest export sector to the US, including a vast range of garments for Western brands. |
Footwear | Various types of shoes (casual, athletic, leather, textile uppers) | Significant (e.g., ~$1.68 billion in 2024 total exports) | Cambodia is a major global producer of footwear. |
Travel Goods | Handbags, luggage, cases, wallets | Substantial (e.g., ~$2.05 billion in 2024 total exports) | This category has seen considerable growth. |
Bicycles | Bicycles, including electric bicycles | Notable (e.g., ~$426.9 million in 2024 total exports) | Cambodia is a significant exporter of bicycles to the US market. |
Electronics & Electrical Equipment | Electronic components, electrical appliances | Growing (e.g., ~$2.18 billion in 2023 for electrical, electronic equipment to all destinations) | Diversification into higher-value manufacturing. |
Furniture & Home Decor | Wood furniture, mattresses, lighting signs, prefabricated buildings | Consistent (e.g., ~$937 million in 2024 total exports) | Includes items made from local materials. |
Agricultural Products | Rice, rubber, cassava, bananas, mangoes, longans, pepper | Smaller values compared to manufacturing, but important | Cambodia exports specific agricultural goods to the US, known for their quality. |
Rubber and Articles Thereof | Natural rubber latex, car tires | Significant (e.g., ~$666.2 million in 2024 revenue from rubber latex exports) | Rubber is a key natural resource and export. |
Important Considerations for "Pre-Tariff Impact":
Dominance of GFT: Garments, Footwear, and Travel goods (GFT) have historically made up the vast majority of Cambodia's exports to the United States, often accounting for well over 70% of the total.
Total Export Value: Cambodia's total exports to the US in 2024 were reported around $9.91 billion by the Cambodian government, and even higher by the US Trade Representative's Office (around $12.7 billion). This highlights the US as Cambodia's largest export destination.
Imminent Change: The data presented above reflects the trade patterns before the 36% tariff (effective August 1, 2025). This new tariff is widely expected to have a significant negative impact on these key export sectors due to increased costs for US buyers and reduced competitiveness compared to other manufacturing hubs (like Vietnam, which faces a lower tariff).
Ongoing Negotiations: While the 36% tariff has been announced, there is still some room for negotiation. However, the pre-tariff era is largely coming to an end for Cambodia's exports to the US.
US Tariffs on Thai Imports: A Looming Challenge for Thailand's Economy
Thailand's export sector is bracing for a significant challenge as the United States is set to impose a 36% ad valorem tariff on most Thai goods, effective August 1, 2025. This move is part of the U.S.'s "Reciprocal Tariff" program, aimed at addressing perceived trade imbalances with various global partners. The high tariff rate, which is notably higher than those applied to some other Southeast Asian nations, has sparked intense negotiations and raised concerns about its potential impact on Thailand's economy.
The 36% Tariff: A Critical Juncture
The decision to apply a 36% tariff to Thai imports stems from Thailand's substantial trade surplus with the United States. While a general 10% baseline tariff is in effect for many countries, the "reciprocal" tariffs are specifically designed to target nations with larger trade deficits with the U.S.
Thai officials have been actively engaged in a series of negotiations with the U.S. to mitigate the impact of these tariffs. On July 6, 2025, Thailand submitted a second-round proposal to the U.S., aiming to accelerate the adjustment of their trade balance. This proposal includes a commitment to reduce Thailand's trade surplus with the U.S. by 70% by 2030 and to achieve a balanced trade relationship by 2031-2032. As part of this offer, Thailand has proposed zero tariffs on certain agricultural products and has indicated a willingness to increase imports of natural gas and aircraft from the U.S.
Despite these efforts, U.S. President Donald Trump confirmed on July 8, 2025, that the 36% tariff rate for Thailand will indeed take effect on August 1, 2025, noting that the rate is "far less than what is needed to eliminate the trade deficit disparity." This puts Thailand at a disadvantage compared to competitors like Vietnam, which secured a 20% tariff, and Malaysia, with a 25% tariff.
Key Details of the Tariff on Thailand:
Aspect | Detail |
Tariff Rate | 36% ad valorem tariff on most goods exported from Thailand to the U.S. |
Effective Date | August 1, 2025 |
Scope | Applies to "any and all Thai products sent into the United States," in addition to any existing sectoral tariffs. Concerns also exist about additional tariffs on goods transshipped through Thailand to evade higher duties. |
Negotiations | Ongoing. Thailand has proposed significant concessions, including reducing its trade surplus by 70% by 2030, offering zero tariffs on certain U.S. agricultural products, and increasing imports of U.S. energy (e.g., LNG) and Boeing aircraft. Thailand is pushing for a tariff rate between 10% and 20% to remain competitive. |
Impacted Sectors | Industries heavily reliant on exports to the U.S. are most at risk, including: |
Economic Outlook | The Bank of Thailand (BOT) has lowered its 2025 GDP growth forecast to 2.3% (from previous estimates), and expects growth of less than 2% for the next 18 months due to the tariffs. Exports are projected to fall by 4% in the second half of 2025 and contract by 2% in 2026. Experts warn of a 5-10 year recovery period if the 36% tariff remains. |
Private Sector View | The Thai National Shippers' Council (TNSC) and the Federation of Thai Industries (FTI) have urged the government to secure a lower tariff rate, warning of increased export costs, reduced competitiveness, potential job losses, and a shift of foreign investment to countries with lower tariffs. They estimate the tariffs could reduce Thai exports by THB 800-900 billion (approx. US$24.5-27.6 billion). |
The Road Ahead
The next few weeks will be crucial for Thailand's trade relationship with the U.S. The Thai government is intensifying its efforts to convince the U.S. to reduce the tariff rate before the August 1 deadline. Failure to secure a more favorable deal could significantly hamper Thailand's export performance, a key driver of its economy, and lead to a prolonged period of economic stagnation. The situation highlights the challenges faced by nations navigating the complex landscape of global trade policies and the critical importance of diplomatic engagement in mitigating their impact.
Conclusion on Higest Countries Facing by The US Import Tariff
The implementation of new "reciprocal tariffs" by the United States, set to take full effect on August 1, 2025, marks a significant shift in global trade dynamics. While initially a 10% baseline tariff was broadly applied, the latest directives from the White House have introduced a tiered system, with some countries facing substantially higher duties based on their trade balances with the U.S. This aggressive trade policy, championed by President Donald Trump, is designed to reduce bilateral trade deficits and is prompting varied responses and significant economic adjustments across the globe.
The impact of these tariffs is far-reaching, extending beyond immediate trade flows to affect global supply chains, investment decisions, and national economic forecasts. The new tariff regime, as outlined in recent letters to over 20 countries, prioritizes a "common sense" approach to trade imbalances. However, this approach has resulted in a wide range of tariff rates, from 20% for Vietnam to a high of 50% for Brazil, and 40% for countries like Myanmar and Laos.
Key Takeaways from the Top 10 Affected Countries (by announced tariff rate for August 1, 2025):
The varying tariff rates highlight the individualized nature of the U.S. approach and the differing degrees of success countries have had in their negotiations. For instance, Vietnam managed to secure a relatively lower 20% tariff, likely due to its strategic importance in supply chain diversification efforts away from China. In contrast, Cambodia and Thailand, both facing 36% tariffs, illustrate the challenges for nations with significant trade surpluses and potentially less leverage in negotiations. Even close allies like Japan and South Korea are not exempt, both facing a 25% tariff, a clear indication that trade balance is a primary driver of this policy.
Country | Confirmed US Tariff Rate (Effective Aug 1, 2025) | Key Considerations / Impact |
Laos | 40% | High tariff signals significant trade imbalance. |
Myanmar | 40% | Similar to Laos, faces a very high tariff, likely due to significant trade surplus and limited negotiation leverage. |
Cambodia | 36% | While a slight reduction from an earlier threatened 49%, still a substantial tariff impacting its key textile and apparel industries. Negotiating efforts continue. |
Thailand | 36% | Facing a significant blow to its export-driven economy. Intense negotiations are ongoing, with Thailand offering concessions such as increased U.S. agricultural and energy imports. Bank of Thailand has lowered GDP growth forecasts. |
Bangladesh | 35% | Apparel exports to the U.S. are particularly vulnerable. Concerns about competitiveness against countries with lower tariffs like Vietnam. |
Serbia | 35% | Impact on its exports, particularly IT services and auto parts, remains to be fully seen. |
Indonesia | 32% | Despite ongoing discussions, the 32% tariff is confirmed. Indonesia is looking to diversify trade partnerships to mitigate the impact, and some officials see opportunity for continued dialogue. |
South Africa | 30% | Expressed concerns about mischaracterization of trade relationship, but committed to diplomatic efforts. Key exports include platinum and vehicles. |
Bosnia & Herzegovina | 30% | Impact on specific sectors like weapons and ammunition will be notable. |
Japan | 25% | Despite being a close U.S. ally, Japan faces a significant tariff, particularly impacting its automotive and electronics industries. Prime Minister Ishiba has called it "extremely regrettable" but acknowledges a lower rate than initially threatened, leaving room for further negotiations. |
South Korea | 25% | Similar to Japan, a crucial ally facing tariffs on vehicles, machinery, and electronics. The Trade Ministry is accelerating negotiations. |
Kazakhstan | 25% | Impact on oil, uranium, and ferroalloys. |
Malaysia | 25% | Facing a moderate tariff increase on electronics and electrical products. The government plans to continue talks with the U.S. |
Tunisia | 25% | Affected sectors include animal and vegetable fats, clothing, and fruits/nuts. |
Vietnam | 20% | Notably lower tariff, indicating a degree of success in negotiations or a strategic U.S. preference for supply chain relocation. However, potential for higher tariffs on transshipped goods from China remains a concern. |
Brazil | 50% | Exceptionally high tariff, with analysts suggesting a politically motivated imposition related to support for a specific former Brazilian leader. Vows of retaliation from Brazil suggest a deepening diplomatic standoff. |
Philippines | 20% | Among the countries recently issued letters, facing a relatively moderate tariff. |
Broader Implications:
The global economy is already seeing significant shifts as a result of these tariffs. Forecasts from institutions like Swiss Re Institute predict a slowdown in global GDP growth to 2.3% in 2025, driven by reduced trade and heightened uncertainty. Industries like clothing, textiles, and footwear are particularly vulnerable, with consumers facing higher prices.
Beyond the immediate economic effects, the new U.S. tariff policy is fostering a climate of increased economic nationalism and supply chain reconfiguration. While some countries may benefit from trade diversion and increased foreign direct investment (FDI) as companies seek to circumvent tariffs, the overall trend points towards a less efficient and more fragmented global trade system. The willingness of the U.S. to impose tariffs even on close allies underscores its determination to reshape international trade relationships in line with its "America First" agenda. The ongoing negotiations and potential retaliatory measures from affected countries will continue to define the contours of this evolving global trade landscape.