Countries around the globe are responding to recently announced tariffs by the Trump administration, which have left many leaders expressing their concerns. The new rates aren’t uniformly distributed to all nations, hitting a huge swath of important exports hard. These countries include Japan, Serbia, Indonesia, Bosnia and Herzegovina, South Africa, Malaysia, and Myanmar.
Japan’s current import tariff rate is prohibitive at 25%. This tariff primarily affects its top exports like cars, auto parts and electronics going to the U.S. Japanese Prime Minister Shigeru Ishiba has issued a public condemnation of the tariff, declaring it “extremely regrettable.” The issue with this proposed trade barrier is rooted in Japan’s long-standing dependence on export sales to the U.S. market.
Serbia and Its Export Challenges
Serbia is going through a much harsher tariff rate at 35%. This high rate especially impacts its exports of commercial service industry software and IT services, and passenger car tires. The Serbian government is currently evaluating the impact these tariffs will have on its economy and the potential need for adjustments in trade policy.
Southeast Asia’s Trade Dynamics
Indonesia has been similarly affected with an average tariff rate of 32%. The United States depends on the country for palm oil, cocoa butter and semiconductors—all of which are important to their economy. As of now, the Indonesian government has not released an official comment on how it plans to respond to the tariffs.
Bosnia and Herzegovina incurs a tariff rate of 30%, which poses a serious barrier to its weapon and ammunition exports. The U.S. government has a strong interest in evaluating the impact of these tariffs on its own fledgling defense industry and overall trade surplus.
South Africa fares little better, its tariff rate also locked at 30%. The nation’s top exports are platinum, diamonds, vehicles and auto parts. In a response to the tariffs, the office of South African President Cyril Ramaphosa stated that the country would “continue with its diplomatic efforts towards a more balanced and mutually beneficial trade relationship with the United States.”
Yet Myanmar has received the highest discretionary tariff rate of any of these countries at 40%. Its primary exports to the U.S are electronics and electrical products. The full effect of such high tariffs on Myanmar’s economy has yet to be realized.
Malaysia’s bound tariff ceiling rate of 25% is one of the highest, which poses significant risks to its diverse export basket. The onus is on the country’s leaders, of course, to guide their citizens through these tectonic changes while finding new opportunities in burgeoning global markets.
