South Korean media: Trump demands to address the trade deficit issue in Southeast Asia, but "there is no way"! On April 9, a South Korean media outlet, Fortune Korea, published an article stating that U.S. President Donald Trump has imposed unprecedented tariffs on Southeast Asian countries. The manufacturing hub of the region, Vietnam, is expected to be affected. Trump's remarks have come as a shock to these nations. Cambodia (49%) and Laos (48%) face higher tariffs than Vietnam (46%). Vietnam and Cambodia have proposed reducing tariffs on American imports. However, this seems insufficient to appease the Trump administration. U.S. Commerce Secretary Howard Lutnick claimed that Vietnam is exploiting the United States with a significant trade surplus. However, achieving balanced trade with countries like Vietnam is a difficult goal. These countries have promised to purchase more American products, such as aircraft and energy. But in reality, these Southeast Asian countries are not wealthy enough to buy American consumer goods equivalent to their export volumes. According to World Bank data, Cambodia's per capita GDP was slightly above $2,400 in 2023. In contrast, the U.S. had a per capita GDP of $82,800. Ultimately, they are unlikely to propose any suggestions satisfactory to the Trump administration. This means that high tariffs may become the "new normal" in U.S.-Southeast Asia trade. Vietnam, Cambodia, and Laos export far more than they import from the U.S. Vietnam exports electronic products such as laptops, mobile phones, and gaming consoles, while Cambodia exports solar panels. Both countries also export daily consumer goods like apparel, footwear, and bags. Laos exports daily consumer goods such as solar panels, footwear, and textiles. DBS Bank in Singapore stated in a recent report that America's high tariffs pose a significant threat to Southeast Asia's growth. Tariffs could reduce Vietnam's economic growth rate by up to 2.5 percentage points. DBS Bank initially predicted Vietnam's growth rate this year would be 6.8%. Currently, Vietnam has proposed removing tariffs on American imports, and Cambodia has reduced tariffs on various American products to 5%. However, this seems unlikely to resolve the fundamental trade imbalance. This is because these countries do not import much from the U.S. Last year, Vietnam imported $13.1 billion worth of goods from the U.S. On the other hand, Vietnam exported $136.6 billion to the U.S., more than ten times its import amount. Cambodia and Laos are primarily agricultural economies and import relatively little from the U.S. Last year, Cambodia imported $3.216 billion worth of products from the U.S. Laos' scale is smaller, importing only $40.4 million worth of products from the U.S. On the other hand, Cambodia exported $12.7 billion worth of goods to the U.S., and Laos exported $833 million worth of goods. The main American products imported by Cambodia and Laos are not consumer goods like cars or electronics, but rather fuel and machinery. Adam Ahmad Samdin, an economist at Oxford Economics' Asia division, said, "These economies do not have strong purchasing power. These countries may not need or want what America offers. Even if willing, it may not be at the price point American producers are willing to sell." Original Source: https://www.toutiao.com/article/1828927002948764/ Disclaimer: The article solely represents the author's viewpoint.