Countries across the world and here at home are preparing to fight the recently published tariff rates that former President Donald Trump rolled out. These modifications will deeply impact principal U.S. exports to Canada. Currently the tariffs are between 25% and 40%. They pose immense opportunities for countries such as Bangladesh, South Africa, Thailand, Malaysia, South Korea, Japan, China and India. Each country experiences different impacts depending on what they export most to the U.S.
Bangladesh would be slapped with a 35% tariff on its main export staple of clothing to the United States. Salehuddin Ahmed, Bangladesh’s finance adviser, has already sounded alarm bells about the potential negative effects this might have on the country’s burgeoning economy. The exorbitant tariff poses a great risk to Bangladesh’s garment industry, the lifeblood of Bangladesh’s rapid economic expansion and the primary source of employment.
In South Africa, a scheduled 30% tariff will immediately affect exports of platinum, diamonds, automobiles, and vehicle parts. The office of President Cyril Ramaphosa responded to these tariffs, noting that the nation will “continue with its diplomatic efforts towards a more balanced and mutually beneficial trade relationship with the United States.”
Similarly, Thailand is hit with a 25% tariff that has crippled its exports of vehicles, machinery and electronics. Deputy Prime Minister Pichai Chunhavajira issued a last-minute warning that this increase would dampen a boom in trade with the U.S. Instead, he caused them to start planning changes in their approaches to trade.
Likewise, Malaysia will face a 25% tariff on its electronics and electrical products. The Malaysian government has already stated its intention to pursue discussions with the U.S. Their goal is to repeal the tariffs and win a more favorable result for their own exporters.
South Korea’s trade landscape is set for a dramatic change. It’s exports of animal and vegetable fats, clothing, fruit, and nuts that a 25% tariff will most immediately land on. The South Korean Trade Ministry is deploying measures to accelerate ongoing negotiations with the United States. They are hopeful their efforts will help mitigate the impact of the new tariffs.
This is in addition to the 25% tariff that the US has placed on Japan’s key exports, such as autos, auto-parts and electronics. Prime Minister Shigeru Ishiba will likely take the reins and steer deliberations to focus on shaping Japan’s response to the new challenges raised by the tariff hikes.
China is not immune to this new wave of tariffs. The country endures an extreme 25% tariff on its exports of computer parts, rubber footwear, and precious and semi-precious stones. This would further inflame the U.S.-China trade relationship at a time of rising confrontation between the two countries on multiple fronts.
This leaves India with a very high tariff binding of 36%. This has a major effect on its textiles, clothing, shoes, and bicycle exports to the United States. This dramatic jump puts into question India’s export competitiveness in one of its top-five markets.
Argentina and other countries could suffer serious harm if fluctuating tariff rates are permitted. These rates are as high as 25% to 40% and include a hefty average of 32% tariff on palm oil and cocoa butter exports.
