US new tariffs shake Asia – here's how Thailand and neighboring countries are reacting

US President Donald Trump has imposed new tariffs that affect almost the entire world – but especially Thailand and other countries in Asia, where exports to the US play a crucial role in the economy.

Starting April 5, a general tariff of 10% will be imposed on all goods imported into the United States. Starting April 9, tariffs will be increased for certain countries with large trade surpluses – to levels equivalent to half of the tariffs that the country itself has on American products.

Thailand reacts – wants to avoid conflict

Thailand will be hit with a tariff on 36%, a level that the US says corresponds to the amount of tariffs and other trade barriers Thailand imposes on American goods. The government in Bangkok says it is concerned about the effects, but that it does not want to get into conflict. Instead, it wants to pursue a early dialogue with the US, and has already created a special working group to help export companies.

Prime Minister Paetongtarn Shinawatra has emphasized that Thailand wants to continue to be a friendly trading partner to the US. The government hopes that the US will show understanding that Thailand is still a developing country in some sectors, and that the tariffs will not hit farmers and small businesses too hard.

China condemns – threatens countermeasures

China has been the country that has protested most clearly. The country's Commerce Department is demanding that the US immediately withdraw the tariffs and says that China is ready to respond with its own measures. Chinese state media describes the tariffs as dangerous - both for the global economy and for American consumers, as goods become more expensive in the US.

Vietnam, Malaysia and Indonesia are cautious – but worried

Vietnam receives a very high tariff, the whole 46%, making the situation urgent for the country's export companies. Prime Minister Phạm Minh Chính has called an emergency meeting and called for calm. At the same time, talks with the US are planned to see if a compromise is possible.

Malaysia and Indonesia are more cautious. Both countries say they want to avoid confrontation, and are now working on strategies to support their industries and find new export markets. The Malaysian government has set up a national “geoeconomic” crisis center.

Laos, Myanmar and Cambodia sound the alarm – but act quietly

The three neighboring countries of Laos, Myanmar and Cambodia also face very high tariffs – between 44 and 49%. For these countries, which already have weak economies, the US measures could be a severe blow. Cambodia is now trying to find a solution through dialogue, while Myanmar and Laos have not yet given an official response.

What happens next?

Several Asian countries are expected to gather for talks within ASEAN to discuss a joint response. At the same time, pressure is increasing on governments in the region to act quickly. Some countries are seeking direct negotiations with the US, others are considering lowering their own tariffs to mitigate the conflict – while several are opening up to respond with countermeasures, i.e. their own tariffs targeting American goods.

Within ASEAN, the possibility of acting as a united regional force, similar to how The EU is preparing a collective response on the US's new tariff strategy. A common stance could give more weight in the negotiations – but it remains to be seen whether member states can agree in time.

For Thailand, the big question is whether exports to the US will decrease – and if so, what that means for jobs, businesses and the economy as a whole.

Sources

This article is based on verified information from official statements, press conferences, and news reporting in established media in Thailand (ThaiPublica), China (Reuters), Vietnam (VietnamMore), Malaysian (Malay Mail), Indonesia (Jakarta Post), Laos (Vientiane Times), Myanmar (Asia Times) and Cambodia (Khmer Times). All information has been reviewed to ensure accuracy and reflects the situation as of April 3, 2025.

Related article

Also read our previous news article about why the US is imposing tariffs, which countries are hardest hit – and what it could mean for the economies in the region: US imposes tariffs – affecting Thailand and Southeast Asia

Text: The editorial staff

Image license: nguyenthuantien, Pixabay, original image