How do Trump’s tariffs affect Asian countries?

Donald Trump’s latest tariff hikes have hit Asian countries the hardest, signalling a deepening rift with key economies in his drive to reshape global commerce.

The hardened position of the US towards longstanding partners such as India and Japan could reshape strategic alignments in Asia, casting doubt on the reliability of Washington as an ally.

Three months after unveiling sweeping tariffs for nearly all major countries in the world, Mr Trump on Friday enforced new and revised levies for over 90 nations, with rates soaring as high as 49 per cent.

Among the hardest hit were America’s allies in Asia – many heavily reliant on exports to the US markets for clothing, electronics, chips and cars – even as they scrambled to strike deals with Mr Trump’s negotiators before his 1 August deadline. Myanmar, India and Laos in particular were slapped with almost prohibitive rates.

Mr Trump seemed to single out India among major economies, imposing a steep 25 per cent tariff on the South Asian nation while blasting it for its burgeoning energy and weapons trade with Russia.

Mr Trump’s aggressive rhetoric in recent days had already undermined hopes of New Delhi getting preferential treatment in trade negotiations compared to other Asian economies given the president’s bonhomie with Indian prime minister Narendra Modi. His announcement of a steep tariff put paid to any such hope.

The US president went after India even after calling it a “good friend” and despite the country being regarded as a partner in counterbalancing China in the Indo-Pacific.

New Delhi and Washington had been working to finalise a trade deal for months and Indian officials expected an agreement by September or October.

In recent weeks, though, the talks had reportedly reached a deadlock over agriculture and dairy. While Washington sought greater access to the Indian market for its farm exports like wheat, corn, cotton, and genetically modified crops, New Delhi insisted that agriculture and dairy sectors, which employ over 80 million people, were off-limits.

Although the 25 per cent levy on Indian exports announced on Thursday was slightly less than the 27 per cent proposed in April, it came with an unspecified penalty for New Delhi’s purchases of Russian oil and weapons.

US secretary of state Marco Rubio said on Thursday that India’s close relations with Moscow remained a “point of irritation” in relations with Washington.

India’s neighbours Sri Lanka and Bangladesh each face a 20 per cent levy, targeting export-reliant economies that send large volumes of textiles and garments to the US.

The tariff on Bangladesh is significantly lower than the original 37 per cent rate, a big relief to the world’s second-largest garment supplier.

Pakistan received a 19 per cent tariff after Mr Trump announced a last-minute trade deal with the country.