 "A customer holds hundred rupees Indian currency notes near a roadside currency exchange stall in New Delhi, India, May 24, 2024. File Image/Reuters")
United States President Donald Trump has launched one of his most sweeping trade actions, formalised in an executive order just hours before the August 1 deadline Trump himself had set.
His new set of tariffs, aimed to “rebalance” trade ties and reduce US deficits — are already prompting sharp responses from Asian governments and global markets.
The executive order, which uses the president’s emergency trade powers, outlines tariff rates as high as 41 per cent on selected imports.
Starting August 7, dozens of countries — including major economies like India, Japan, Taiwan, and South Korea — will see a surge in duties on products entering the US Goods from nations not covered in the directive will automatically face a 10 per cent tax.
Trump’s latest order spells out rates ranging from 10 per cent to 50 per cent across 69 countries, making it one of the largest single tariff changes in decades.
The directive also imposes a 40 per cent tariff on goods rerouted through third countries to circumvent duties, sending a clear warning to companies relying on transshipment strategies.
This provision builds on an earlier tariff order issued in April, which had already rattled trade routes.
In explaining the move, Trump’s order bluntly stated that some countries, “despite having engaged in negotiations, have offered terms that, in my judgment, do not sufficiently address imbalances in our trading relationship or have failed to align sufficiently with the United States on economic and national-security matters.”
On the eve of the deadline, Trump reinforced the tone on social media, writing: “THE AUGUST FIRST DEADLINE IS THE AUGUST FIRST DEADLINE — IT STANDS STRONG, AND WILL NOT BE EXTENDED. A BIG DAY FOR AMERICA!!!”
India’s unresolved US trade fight
India finds itself squarely in the spotlight. Despite weeks of discussions, New Delhi and Washington were unable to secure a tariff-reducing agreement. As a result, Indian goods will now face a 25 per cent duty — a rate that has caused immediate economic ripples.
A senior US official, speaking to Reuters, summarised Washington’s frustration: “Our challenges with India, they’ve always been a pretty closed market… there are a host of other kind of geopolitical issues.”
The official also linked the trade impasse to broader foreign policy considerations, noting, “You’ve seen the president express concern about, you know, membership in Brics, purchases of Russian oil and that kind of thing.”
The tariffs have already shaken Indian markets. The rupee slipped, opposition parties voiced outrage, and business groups warned about pressure on export-oriented sectors.
Indian Commerce and Industry Minister Piyush Goel reassured Parliament that talks are still underway, saying the goal is to reach a trade pact by October-November this year.
He stated that “the government gives great importance to protecting farmers, entrepreneurs, and medium and small enterprises, and will take all needed steps to safeguard its national interest.”
Yet US trade insiders caution that a breakthrough will not come quickly.
India’s refusal to open its agricultural sector — long considered one of the most sensitive areas of its economy — remains a sticking point, as does its continued purchase of Russian oil.
Asia’s responses — who gained, who lost
The tariff changes have reverberated across Asia, with outcomes ranging from relief to frustration.
Some nations secured reductions from earlier proposed rates, while others were saddled with some of the highest tariffs in the world.
Japan negotiated one of the most significant rollbacks. Tariffs on Japanese goods will now sit at 15 per cent, down from the 25 per cent previously flagged, including critical relief for the auto sector.
Chief Cabinet Secretary Yoshimasa Hayashi called the shift a stabilising step, saying the lower tariffs “will reduce uncertainty regarding U.S. trade policy and lower the risk of a downturn in our economy and the global economy,” according to NHK.
He pledged additional government financing support for small and medium-sized firms facing cost pressures.
Thailand also saw its rate lowered — now 19 per cent, compared to an earlier proposed 36 per cent. Finance Minister Pichai Chunhavajira posted on X that the tariff figure “reflects the close friendship and partnership between Thailand and the United States.”
At the same time, he acknowledged the pain for exporters and farmers, promising “comprehensive support measures,” including loans, subsidies, and tax breaks to help the economy adjust.
Malaysia benefitted from a cut too. Prime Minister Anwar Ibrahim noted that tariffs would fall from 25 per cent to 19 per cent, telling Parliament, “Tomorrow’s [Aug. 1] general tariff rate will ease and not burden our economy.”
Taiwan is now facing a 20 per cent temporary tariff. President Lai Ching-te said that if negotiations progress further, “it can be expected that the tariff rate will be further reduced.”
He also flagged that future discussions with Washington will address supply chain cooperation and the controversial Section 232 tariffs that were imposed years ago on “national security” grounds.
Cambodia, once facing one of the harshest penalties, became an unexpected winner. Its duty has been reduced dramatically from 49 per cent to 19 per cent.
Prime Minister Hun Manet called the outcome “good news for the citizens and economy of Cambodia,” while also publicly thanking Trump for “initiating and pushing for ceasefire between [the] Cambodian army and Thai army” after recent border clashes.
But not every Asian country escaped heavy hits.
Syria tops the list with a crushing 41 per cent tariff. Laos and Myanmar are each staring at 40 per cent duties, rates that could disrupt their fragile export sectors.
How India compares to the rest of Asia
Trump’s executive order includes an extensive list of Asian nations and the duties they now face on exports to the US:
Afghanistan – 15 per cent
Bangladesh – 20 per cent
Brunei – 25 per cent
Cambodia – 19 per cent
Fiji – 15 per cent
India – 25 per cent
Indonesia – 19 per cent
Iraq – 35 per cent
- Israel – 15 per cent
Japan – 15 per cent
Jordan – 15 per cent
Kazakhstan – 25 per cent
Laos – 40 per cent
Malaysia – 19 per cent
Myanmar (Burma) – 40 per cent
Pakistan – 19 per cent
Papua New Guinea – 15 per cent
Philippines – 19 per cent
South Korea – 15 per cent
Sri Lanka – 20 per cent
Syria – 41 per cent
Taiwan – 20 per cent
Thailand – 19 per cent
Turkey – 15 per cent
Vietnam – 20 per cent
Vanuatu – 15 per cent
The range shows how selectively Washington applied the policy — some countries, like Israel and South Korea, are at the low end with 15 per cent, while others like Syria and Myanmar sit at the top with 40-41 per cent.
How Asian markets reacted
Indian stocks slipped early on Friday: the Nifty 50 fell 0.35 per cent, and the BSE Sensex dropped 0.34 per cent.
Across Asia, tech companies bore the brunt of investor jitters. In Japan, Tokyo Electron saw a staggering 17 per cent plunge, with Lasertec (– 4.67 per cent), Advantest Corp (– 2.51 per cent) and SoftBank Group (– 2.07 per cent) also in the red.
South Korea’s SK Hynix shed 5.12 per cent, and Samsung Electronics dropped 1.92 per cent.
Taiwan’s TSMC slid 1.72 per cent, while Hon Hai Precision Industry (Foxconn) managed to gain 1.12 per cent, bucking the downward trend.
Currency markets reflected the same uncertainty. The US dollar index inched up 0.11 per cent to 100.73, showing traders’ cautious shift into the greenback.
The South Korean won dropped 0.53 per cent, dipping below 1,400 per dollar for the first time in nearly three months.
The Taiwanese dollar fell 0.35 per cent, and China’s offshore yuan weakened by 0.11 per cent to 7.2083, approaching a two-month low.
Other Southeast Asian currencies also softened: the Thai baht lost 0.24 per cent, the Philippine peso fell 0.49 per cent, and the Malaysian ringgit dropped 0.42 per cent.
The Singapore dollar remained steady at 1.284, and the Japanese yen was flat at 150.75.
US data suggest these tariffs could ripple through consumer prices.
The US Commerce Department reported that prices for home furnishings and durable household equipment rose 1.3 per cent in June, the sharpest increase since March 2022.
Recreational goods and vehicles saw a 0.9 per cent rise — the highest since February 2024 — and clothing and footwear climbed 0.4 per cent.
China, India and future trade battles
While tariffs for most nations are now locked in, negotiations are ongoing for some of America’s biggest trading partners.
China has until August 12 to finalise what officials describe as a “durable” tariff agreement.
US Treasury Secretary Scott Bessent, speaking after trade talks in Stockholm, said that while progress has been made, the discussions “still require President Trump’s approval.” He noted that US negotiators “pushed back quite a bit” on Chinese proposals.
India’s situation is more uncertain. The 25 per cent tariff is now in place, and US officials have hinted that more concessions will be necessary for any reduction.
The gap between the two countries reflects both trade disputes and broader political concerns — including India’s balancing act between Western partners and members of Brics, as well as its ongoing energy ties with Moscow.
Trump, for his part, struck a confident tone, hinting at undisclosed deals.
“We have made a few deals today that are excellent deals for the country,” he told reporters, though he did not name which countries were involved or when announcements would be made.
With inputs from agencies