How Trump's tariff chaos could reshape Asia's businesses
Summary
In response to President Donald Trump's unpredictably changing tariff policies, businesses in Asia are adjusting their strategies. The uncertainty around tariffs, especially for products like semiconductors, is causing difficulties in long-term planning for companies that rely on complex supply chains.Key Facts
- President Trump is planning new tariffs that could be as high as 60-70% or as low as 10-20% starting from August 1.
- The exact countries affected by these new tariffs have not been disclosed.
- Semiconductors are currently not subject to tariffs, but future levies are a possibility.
- US-based company GlobalFoundries makes chips for major companies and is modifying its operations in response to these tariffs.
- Restrictive measures on artificial intelligence chip exports to Malaysia and Thailand are being considered by the White House.
- Trump's earlier tariffs in April targeted many Asian countries which could see higher rates return after a temporary reduction to 10%.
- Southeast Asian countries' economic ties with the US could be strained by these tariff changes.
- Businesses are encouraged to build inventory and reconsider supply chain strategies to manage market uncertainty.
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