Asian Exporters Recoil as New US Tariffs Take Effect

Asian countries are reeling from the economic impact of sweeping new US tariffs that took effect on Thursday under President Donald Trump's latest round of trade policy aggression.

Over 90 nations, including large Asian exporters such as India, Taiwan, and numerous Southeast Asian countries, are currently subjected to substantial import duties under what the White House describes as a campaign for "reciprocal trade."

India has been hit with a 50 percent tariff which will be made effective from August 27, unless it suspends oil imports from Russia. New Delhi has denounced the action as "unfair, unjustified and unreasonable," promising to uphold its national interests.

Key Highlights:

• India, Taiwan, and Southeast Asian nations face steep new US tariffs, with India hit by a 50 percent duty over Russian oil imports
• Top Asian chipmakers like TSMC, Samsung, and SK Hynix secured exemptions from a proposed 100 percent US tariff on semiconductors
• Asian stock markets remained largely resilient despite trade tensions, with gains in Japan, China, and Korea

"This is a drastic change in Trump's stance on Russia and could mark an escalation of pressure on other Asian nations that still enjoy strategic relationships with Moscow," cautioned eToro analyst Farhan Badami.

Taiwan, the most important US ally in Asia, saw a 20 percent tariff, although President Lai Ching-te characterized it as "temporary" and indicated talks are ongoing with Washington. Meanwhile, Southeast Asian economies such as Laos and Myanmar have been slammed with high 40 percent tariffs. some of the highest in the world, worrying their export-based industries.

Also Read: Trump Hits BRICS With Tariff Threat

In spite of the blanket actions, top Asian chipmakers such as TSMC, SK Hynix, and Samsung have managed to win exemptions from a proposed 100 percent duty on imported foreign-made semiconductors. This followed intense lobbying and continued investments in America.

"The times are indeed AI, and we are committed to AI," a South Korean official stated, reflecting regional initiatives to synchronize with changing US expectations for trade while hedging against risks.

Markets in Asia were resilient, with stock markets in Japan, China, and Korea advancing slightly, although India and Australia dipped.