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Of elephants and mice

The Philippine Star

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April 25, 2025

"When elephants fight, the mice scamper." When super powers clash, smaller nations must take cover.

- BOO CHANCO

Of elephants and mice

President Donald Trump's tariff war basically against China has caused serious problems for the tiger economies of Southeast Asia. Before the so-called reciprocal tariffs were paused to a uniform 10 percent, ASEAN nations were heavily penalized with tariffs reaching 46 percent on Vietnam, 36 percent on Thailand, 49 percent on Cambodia, 48 percent on Laos, 44 percent on Myanmar, 32 percent on Indonesia and 24 percent on Brunei and Malaysia. A 17 percent tariff was imposed on the Philippines and Singapore, 10 percent.

Apparently, in the eyes of Trump officials, Southeast Asia was an extension of China's manufacturing engine. Channel News Asia reports that some American politicians believe Chinese companies have been using ASEAN countries as a cover for some time now. The Liberation Day tariffs will isolate China and block its use of third-party countries to ship cheap made-in-China products to America. US suspicion has a basis because a good number of manufacturers in China fled to Vietnam, Thailand and Malaysia when increased tariffs were imposed during the first Trump term.

In the main event of this fight, China hiked its tariffs on imports of US goods to 125 percent in reaction to Trump's order effectively raising tariffs on Chinese goods to 145 percent. Xi Jinping called Trump's tariff strategy "a joke" and swore China will not capitulate. Additionally, China banned exports of rare earths and other raw materials essential in manufacturing today's technology-driven products.

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