World

Faced With Steep Tariffs, Vietnam, Cambodia, Indonesia Try To Woo Donald Trump To Ease Trade Tensions

by aweeincm

April 5, 2025

As US President Donald Trump pushes forward with sweeping tariffs of up to 50 per cent on global imports, several Southeast Asian economies are opting for diplomacy over defiance.
Nations heavily dependent on exports to the United States—such as Vietnam, Cambodia and Indonesia—have quickly moved to signal flexibility, in hopes of shielding their economies from trade shocks, reported Bloomberg.
Trump’s latest tariff announcement roiled markets, erasing trillions in value worldwide and renewing fears of a global economic slowdown. In sharp contrast to the retaliatory posture adopted by China, and the European Union’s threat of countermeasures, Southeast Asian governments are taking a softer route—publicly expressing interest in talks.
Vietnam has been particularly proactive. The country, which has seen its manufacturing sector flourish thanks to companies shifting production out of China during Trump’s earlier presidency, is now at risk of losing that competitive edge. Prime Minister Pham Minh Chinh even said he’d be willing to golf with Trump at Mar-a-Lago to resolve trade tensions. In a bid to ease friction, the Vietnamese government has lowered tariffs on US goods including cars, ethanol and LNG.
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<h3>Early Moves to Ease Tensions</h3>
Vietnamese leader To Lam recently offered to drop duties on American imports and ramp up purchases to avoid a proposed 46 per cent tariff. Trump, describing his call with Lam as “very productive,” hinted that the two may meet soon. Still, it remains uncertain whether these efforts will be enough to exempt Vietnam from the sweeping tariffs.
Cambodia, which faces a staggering 49 per cent duty—the highest among Asian nations—has followed suit. The country announced plans to reduce its own tariffs on US products and encourage American imports. “Cambodia is serving a useful purpose, smoking out the level of negotiating ambition of the United States,” said Simon Evenett, founder of the St. Gallen Endowment for Prosperity Through Trade. “If the Americans push too hard, they’ll scare away other bigger fish.”
Indonesia, too, is taking pre-emptive action. Facing a 32 per cent tariff, Jakarta pledged to ease trade restrictions and is dispatching a delegation to Washington next week.
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<h3>Market Reactions and Sectoral Impact</h3>
Hints of a possible deal with Vietnam lifted shares of US-based apparel companies, many of which have long depended on the country’s low-cost, high-skill manufacturing base.
Vietnam, now the largest footwear supplier to both Nike and Adidas, produces around half of Nike’s shoes and 39 per cent of Adidas footwear, according to regulatory filings. The nation exported $44 billion in textiles last year, with the US serving as its biggest market.
While Trump has expressed openness to negotiated outcomes if countries offer something “phenomenal,” he made his position clear: “The tariffs give us great power to negotiate,” he said aboard Air Force One. “Every country has called us.”
Despite the conciliatory tone from Southeast Asia, the region’s future access to the US market may depend on how much it’s willing to concede—and how Trump defines a “phenomenal” deal.