New tariffs to weigh on Asia-Pacific

The latest round of tariffs imposed by the United States against dozens of its trading partners is expected to further weigh on Asia-Pacific economies already reeling from multiple crises, including high energy prices and a looming super El Nino.

The Office of the US Trade Representative, or USTR, has announced tariffs ranging from 10 percent to 12.5 percent on goods from 60 economies starting on Friday, citing Section 301 of the Trade Act of 1974 — which allows the US president to penalize countries found to have "failed to curb" forced labor in supply chains.

The new trade measures took effect just as temporary 10 percent worldwide tariffs expired at 12:01 am on Friday.

Analysts noted that Washington's latest move comes at a time when the Asia-Pacific region is already grappling with an escalating Middle East crisis that has disrupted energy supplies, fueled inflation and dragged down local currencies.

Lavanya Venkateswaran, senior economist at the Singapore-based Oversea-Chinese Banking Corporation, said the USTR's announcement shows that the administration of US President Donald Trump remains undeterred in its tariffs agenda.

The US tariffs will continue to be "a key risk to watch" for policymakers in the Asia-Pacific region, according to Venkateswaran.

Michael Ricafort, chief economist at the Manila-based Rizal Commercial Banking Corp, said the recent slew of US tariffs could slow down exports, trade, investment and employment generation. Meanwhile, there is the possibility of retaliatory tariffs from Asian governments which could further slow economies worldwide.

For Yeah Kim Leng, a professor of economics at Sunway University in Malaysia, the US tariffs have added "another layer of complexity and uncertainty" for the region's policymakers and business leaders.

Yeah said manufacturing hubs in Thailand and Vietnam are facing significant disadvantages despite having previously negotiated lower rates, as they now fall into the higher 12.5 percent bracket.

The Trump administration's continued use of tariffs as a tool to restructure global trade might accelerate regional integration among trade-dependent Asian economies, he said.

The tariffs are pushing Asian economies to safeguard their supply chains against "increasingly unpredictable" US trade policies, Yeah said.

The fresh round of tariffs marks the Trump administration's latest attempt to resurrect duties first imposed on "Liberation Day" in April 2025, which were struck down by the US Supreme Court earlier this year.

Voicing frustration

The latest action by Washington has sparked severe criticism across Asia, with several governments voicing frustration over measures they say disregard previous diplomatic efforts and trade concessions made to Washington.

The Japanese government said it was "regrettable" that the US has decided to impose new tariffs on 60 trading partners, including Japan. Chief Cabinet Secretary Minoru Kihara said in a briefing that Japan's industrial and trade practices are "in accordance with international rules".

Australian Trade Minister Don Farrell said the imposition of higher tariffs on Australia is "completely unjustified" and that Australian officials will continue to lobby the USTR to remove all tariffs on Australian goods.

Philippine Trade Secretary Cristina Aldeguer-Roque said that Manila will continue to engage with Washington and emphasize that the Philippines has a strong policy against forced labor consistent with various International Labour Organization's conventions.

prime@chinadailyapac.com