US President Donald Trump has intensified tariff measures in a bid to clamp down on tariff circumvention through Southeast Asia and other third-party locations. His latest actions, aimed at closing long-standing loopholes, have disrupted global solar supply chains and intensified scrutiny on countries serving as intermediaries for Chinese-made products. The new strategy follows years of limited success from previous trade wars and marks a more aggressive posture on trade enforcement
China and Vietnam signed dozens of cooperation agreements during a state visit by Chinese President Xi Jinping, as he aimed to strengthen ties in Southeast Asia on his first overseas trip of the year
Vietnam, historically a significant beneficiary of the "China +1" strategy, finds itself between pressure from the US and political ties with China. It was the first to engage in reciprocal tariff talks with the US, but was also featured in Chinese President Xi Jinping's recent diplomatic visit. The US's planned 46% reciprocal tariff on Vietnamese exports, paused for 90 days by President Donald Trump, raises questions about Vietnam's role as a tech manufacturing hub, as noted by Rest of World
According to Nikkei, Japanese electronic components manufacturer Meiko announced a JPY50 billion (US$348.82 million) investment to establish a new factory in Hoa Binh, northern Vietnam. The facility is slated to begin mass production of advanced electronic substrates for Apple's iPhone by the fiscal year 2026 (April 2026 to March 2027)
China is navigating the complexities of ongoing trade tensions with the US by employing a dual strategy of diplomatic engagement and strategic countermeasures. President Xi Jinping has taken a proactive role in fostering international trade relations, emphasizing the detrimental effects of tariff conflicts, while simultaneously addressing the practical challenges posed by US trade policies
US tariff policy uncertainties have created challenges and opportunities for international manufacturers. Companies in countries with lower reciprocal tariffs enjoy a competitive edge. Sercomm, a networking equipment manufacturer, has found its production strategy advantageous amid the tariff volatility. The company, which concentrates approximately 60% of its production in the Philippines for the North American market, benefits from the Philippines' relatively lower tariff rate of 17%, compared to the potential 46% rate for Vietnam
The reciprocal tariff measures implemented by US President Donald Trump officially took effect at 12:01 PM Taiwan time on April 9. Taiwanese manufacturers in Southeast Asia have become severely affected, with tax rates in Thailand, Vietnam, and Cambodia reaching as high as 37% to 49%
