Trump Tariffs

In the media: China Daily on Market Diversification in Southeast Asia

Is the Southeast Asian Market cushioned from harsh US tariffs through diversification?

Editor’s Note: On May 28, the U.S. Court of International Trade ruled that the global tariffs imposed by Trump are illegal. However, many of the sector-specific tariffs like those on Southeast Asian agricultural exports remain in effect even as trade negotiations continue in the on-off Trump Tariff saga.

Segi Enam Advisors principal Khor Yu Leng was cited by China Daily on 5 May 2025 for her views on market diversification among ASEAN countries, following the impact of high US tariffs on the Southeast Asian market.

On 2 April, the US imposed a baseline 10% tariff on all its trading partners, along with additional, country-specific tariffs. Among those hit hard were countries in Southeast Asia. For example, Indonesia, the world’s biggest coffee exporter, was hit with a 32% tariff, even though the US is one of its key markets. Thailand the second largest was hit with a 32% while Cambodia 49%. Meanwhile, Vietnam, which is considered more vulnerable due to its strong reliance on the US and the likelihood of future tariffs, was slapped with a 46% tariff.

In response, countries in the ASEAN region continue the negotiations with the US, but they’re also actively working to protect their respective economies by diversifying their export markets and improving export competitiveness.

Planters and traders in Indonesia, for instance, remain optimistic as they turn to other key markets like Singapore, South Korea, and the Middle East. Governments in the region are also stepping up support. In Malaysia, Prime Minister Anwar Ibrahim announced a 1 billion ringgit (about $235 million) relief fund to help small and medium-sized businesses affected by the tariffs. Meanwhile, Thailand is hosting a global rice summit from May 25 to 27, led by its Commerce Ministry. The goal is to promote Thai rice exports and secure purchase orders worth over 2 billion baht (around $61 million).

Yu Leng’s comments below touched on the diversification of markets among ASEAN countries following the impact of the US tariffs.

Khor Yu Leng, director of Singapore-based consultancy Segi Enam Advisors noted that the US tariffs are of great concern in ASEAN countries as exporters have a similar range of agricultural products, including rice, palm oil, and fruits. She said Vietnam and Thailand seem more vulnerable, with relatively higher US tariffs and heavier dependence on niche markets and products, including jasmine rice.

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