No Ass-Kissing, Please – US Tariffs in Asia

Asian countries respond to US tariffs with pragmatism, but also resolve.

As expected, Asia is bearing the brunt of the sweeping US reciprocal tariffs. The Asian markets experienced a substantial net outflow of foreign investments for three consecutive weeks, amounting to USD$3.84 billion for the week ended April 18, 2025.

Unsurprisingly, some countries in the region have scrambled to mitigate the fallout from the current baseline tariffs assault and the possibility of harsher tariffs after the hastily planned and announced 90 day pause.

• Vietnam, slapped with a 46% tariff, was the first to show willingness to negotiate. It has vowed to purchase more goods from the U.S and cracked down on the illegal transhipment of Chinese goods to the US. 

• Indonesia has subsequently agreed to increase imports of US food and commodities by $19 billion and reduce orders from other countries in an effort to avoid the threatened 32% tariff on its exports. 

• Taiwanese president Lai Ching-te promised to reduce tariffs to zero for US goods, increase purchase of goods from and investment to the US, after a 32% tariff was imposed on the self-ruling island facing constant threat from China and relying heavily on the US for its defence needs. 

• India hailed progress of a trade deal during US vice president JD Vance visit on Apr 21.

This handily plays into Trump’s apparent strategy of coercing countries to the negotiating table while  also boosting his ego, as he said on record that countries are begging him and “kissing his ass“. 

While it is pragmatic for Asian countries to scramble to alleviate short-term pain, it is far from the truth to say that they are at the mercy of the US.   Though maintaining calm by not retaliating, Asian nations are nevertheless pushing back and speaking out.

• Singapore Prime Minister Lawrence Wong did not mince his words in his recent speech, when he cautioned that “the stark reality that the era of rules-based globalisation and free trade is over”, and that “the US may have decided to turn protectionist but the rest of the world does not have to follow the same path.”

• Malaysian Prime Minister Anwar Ibrahim called out the tariff for not only flawed in its basis for calculation, but also a challenge to the fundamental principle of nondiscrimination underpinning global trade rules. As ASEAN chair this year, Malaysia also said it will push for a unified approach among ASEAN members to demonstrate the common resolve of the region.  

• EvenJapan,  the US closest ally in the region, is voicing up. Prime Minister Shigeru Ishiba said Japan won’t just keep conceding to US demands to reach a deal over tariffs, as the US eyes more access to Japan’s automotive and agricultural sector. 

The message from Asian leaders is very clear. The region, and the world, require  a US that plays by the rules. While seeking amicable solutions with the US, despite the irreverent attitude displayed by the Trump administration, Asian countries are also taking steps toward self-preservation by exercising their own agency. The US needs to realise that as this mania drags on, it is hurting the US’ long-term interest in the region, as trust in it as a responsible and trustworthy superpower is fast eroding.