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Vietnam and China suffer the most impact from US "Liberation" day

The Edge Singapore
The Edge Singapore  • 4 min read
Vietnam and China suffer the most impact from US "Liberation" day
US tariffs on Vietnam and China likely to be far-reaching but China could accelerate stimulus plans, Morgan Stanley says
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The current US administration, whether mistakenly or not, views April 2 as its so-called "liberation day". To the rest of the world it marks the beginning of the tariff warws and has echoes of the 1930s, with the Smoot-Hawley Act under Herbert Hoover and we know how that turned out. 

Three large Asian economies, Vietnam, India and China are in the US administration's cross-hairs, although India appeared to have got off with only a graze. 

Vietnam is one of the worst-hit countries with a proposed 46% tariff, second-highest in Asean. The US announced a high 46% tariff on Vietnam, second-highest in Asean after Cambodia (49%). According to the US, Vietnam currently imposes 90% tariffs (including currency manipulation and trade barriers) on US imports. And, according to Reuters, the US deficit with Vietnam surged 18% y-o-y to US$123.5 billion in 2024.

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