Pacific Money | Economy | Southeast Asia

Donald Trump’s Tariff Re-Do in Southeast Asia

The capricious treatment of partners and allies threatens to do long-term damage to Washington’s standing in the region.

U.S. President Donald Trump exits the stage after delivering remarks at the World Economic Forum in Davos, Switzerland, Jan. 21, 2026.

Last year, the United States imposed sweeping tariffs on its trade partners worldwide, including those in Southeast Asia. The tariffs, which went as high as 49 percent, were based largely on the size of each country’s bilateral trade surplus with the United States. Really big exporters, like Thailand and Vietnam, faced stiff tariffs.

Indonesia and Malaysia quickly agreed to lopsided reciprocal trade agreements with the U.S. to get the tariffs lowered to under 20 percent. That may have been hasty as the deals contain numerous provisions that are seemingly impossible to enforce.  In any case, the U.S. Supreme Court struck down the tariffs in February.

Trump’s love of tariffs has not been deterred, however, and the administration soon launched a wave of investigations under the authority of Section 301 of the Trade Act of 1974. This gives the U.S. Trade Representative broad powers to impose tariffs if they conclude that trade partners are engaging in unfair practices or using forced labor. The results are in on the forced labor probe, and the administration has concluded that 60 countries are in violation of Section 301. Those found to be in violation are subject to new tariffs of between 10 and 12.5 percent.

Singapore, Vietnam, and Thailand are among those being tariffed at the higher rate. Indonesia and Malaysia, which have conveniently already signed reciprocal trade agreements with the U.S., are subject to the lower 10 percent rate. Of course, the official explanation is not being received well. Singapore’s Foreign Minister Vivian Balakrishnan noted that there was “no technical or economic basis” for the tariffs, and that the U.S. actually runs a trade surplus with Singapore.

One could be forgiven for thinking the new round of Section 301 investigations is merely a thin pretext for re-tariffing trade partners after the first round of tariffs were struck down by the Supreme Court. But the Singapore case is worth unpacking, as it underscores just how complex international trade and investment networks are and the extent to which the new round of tariffs seems to miss the point entirely.

In April 2025, Singapore was hit with a 10 percent tariff by the Trump Administration. This was relatively light, compared to higher punitive tariffs levied on countries like........

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