Trump's Tariff Burden Falls Hardest on Asia

'A surprise' that FTA partner Singapore is also hit, says ex-senior US trade official

- Bhagyashree Garekar

WASHINGTON - Framing it as a declaration of economic independence, US President Donald Trump announced sweeping tariffs on April 2 in an attempt to replace free trade with "fair" trade.

In his most ambitious economic policy, which he said will make America wealthy again, he announced a tariff of 10 per cent on all goods coming into the US from anywhere in the world, including Singapore.

He also imposed hefty "reciprocal" tariffs on at least 60 trading partners, who he said slapped excessively high duties on American products.

The harshest burden fell on Asian economies, with the highest rate of 49 per cent imposed on Cambodia.

The tariffs on China added 34 per cent on top of the 20 per cent Mr Trump had already imposed, citing insufficient action in combating the trafficking of the deadly opioid fentanyl.

The tariff on Vietnam was at 46 per cent, Thailand at 36 per cent, Indonesia and Taiwan at 32 per cent each, Malaysia at 24 per cent and the Philippines at 17 per cent.

Among the few Asian nations hit with under 30 per cent were allies Japan at 24 per cent and South Korea at 25 per cent. India, which Mr Trump named as imposing some of the steepest duties on US-made goods, faces a 26 per cent tariff.

Canada and Mexico are excluded from the reciprocal tariff regime, while the European Union faces a 20 per cent tariff, and Australia, 10 per cent.

Ms Wendy Cutler, vice-president of the Asia Society Policy Institute and former acting deputy US trade representative, said: "Hitting Singapore, a close ally and an FTA (free trade agreement) partner with an open economy, comes as a surprise."

Under the US-Singapore Free Trade Agreement, in effect since 2004, Singapore applies zero tariffs on US products, as long as they qualify as originating goods under the FTA's rules of origin.