U.S. Tariff Wall Expands to Southeast Asia, Disrupting Global Supply Chains

As the U.S. rolls out a new wave of tariffs targeting Cambodia, Indonesia, Laos, Malaysia, and Thailand with duties between 25–40%, manufacturers across Southeast Asia face mounting uncertainty. Originally aimed at curbing Chinese-made goods rerouted through these countries, the move reflects Washington’s escalating efforts to seal off trade routes and protect domestic industries. Regional exporters are now grappling with the challenge of re-routing supply chains amid higher production costs, forcing companies to consider reshoring or shifting to alternative partners. Meanwhile, traceability and compliance service providers are experiencing a surge in demand as firms scramble to certify origins and avoid punitive duties. The upshot: global manufacturing networks are being re-mapped, with knock-on effects for both corporate planning and investment strategies.

While the policy may not immediately deliver on its promise to bring manufacturing back to the U.S.—largely due to cost competitiveness constraints—it signals a long-term strategic shift. Corporates in Asia are now evaluating relocation options, and investors are reassessing exposure to tariff-sensitive sectors. Meanwhile, allied trade blocs like CPTPP are gaining traction as businesses seek more predictable frameworks for sourcing and expansion.