Give up the fantasy of the US, Southeast Asia is experiencing a long farewell
Until recently, Malaysian men's fashion designer Bon Zainal Harun was exporting custom suits and formal wear to the United States. But this summer, President Trump's arbitrary tariffs have basically blocked him out of this market.
In an interview with This Week in Asia, a subsidiary of Hong Kong's South China Morning Post, Harun said, "Price increases may disrupt business. We can only actively seek change and maintain competitiveness."
According to a report by Hong Kong media on the 25th, the Trump administration imposed a 19% tariff on Malaysian imported goods, which has severely hit the country's small but profitable textile industry.
Data from the Malaysian Textile Manufacturers Association shows that Malaysia's clothing exports to the US were approximately 1.39 billion ringgits (about RMB 2.344 billion) in 2023, increasing to 1.6 billion ringgits (about RMB 2.698 billion) in 2024, but for the first eight months of this year, the figure was only about 998 million ringgits (about RMB 1.683 billion).
Compared to the clothing industry, the US tariffs will have a greater impact on Malaysia's electronics and semiconductor industries. Last year, these two product categories accounted for about 40% of the country's total exports. The Malaysian government estimates that the tariffs will reduce the country's economic growth rate by about 1 percentage point, and the growth forecast for 2026 will be reduced to 4% to 4.5%.
The tariff rate in Malaysia is relatively low among Southeast Asian countries, and Thailand, Indonesia, and Cambodia also apply this rate; while the poorest countries in the region, such as Laos and Myanmar, face tariffs as high as 40%.
However, as the initial shock subsides, the South China Morning Post noted that small and medium-sized enterprises in Southeast Asia are undergoing a "long farewell": although unwilling, they are mostly giving up their fantasies and readjusting their strategies, gradually reducing their reliance on the US market to prepare for a longer future.
For many companies, this means shifting to the domestic market: exploring new markets closer to home, compressing profit margins, and at the same time reducing exposure to tariff risks.
"No matter if there are tariffs or not, clothes will always sell," said the optimistic Harun, "My advice is to focus on the domestic and regional markets. In the fashion industry, even high prices have consumers, we just need to invest more creativity in design and marketing."
Original: www.toutiao.com/article/1846967971166280/
Statement: This article represents the views of the author.