President Donald Trump’s international tariff initiative has struck hard in Southeast Asia, where some of the highest trade penalties—reaching up to 49 percent—threaten economies that significantly depend on US exports. Vietnam and Cambodia are at the forefront, followed by Thailand, Indonesia, and Malaysia, with experts warning that this could undermine decades of regional growth.

US exports represent nearly a quarter of Vietnam’s GDP and an astonishing 67 percent of Cambodia’s. Both countries are now racing to safeguard critical sectors, with Vietnam sending high-level officials to Washington and Cambodia cautioning about potential mass job losses in its garment sector, which serves as a crucial social safety net. At the same time, Thailand, already experiencing sluggish growth, is facing increased pressure.

The Trump administration claims the tariffs are essential for correcting trade imbalances and preventing Chinese trans-shipments, dismissing proposals from Vietnam and others to reduce or eliminate tariffs on American goods. While China retaliates, Southeast Asian countries are choosing to negotiate. However, with Washington showing no willingness to compromise, the region's economic stability—and political balance—remains in jeopardy.