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The Trump administration has publicly identified Singapore and 39 other economies as participants in what it calls a 'shadow transshipment network' enabling Chinese exporters to circumvent US tariffs. The White House estimates the scheme has cost America tens of billions in customs revenue.
Indonesia risks losing US market share to competitors with lower tariffs and production costs, warns the Indonesian Employers Association, as negotiations with Washington continue.
New US tariff measures under Section 301 will have limited immediate impact on Southeast Asian exports thanks to extensive product exemptions, but ongoing trade probes and geopolitical tensions pose longer-term risks to the region's exporters.
Singapore has been hit with a new 12.5% tariff on roughly one-third of its exports to the United States, part of Trump's restructured tariff strategy following a court setback earlier this year.
Malaysia has secured placement in the lower tariff bracket under US Section 301 measures, facing a 10% duty rather than 12.5% imposed on other economies, recognising its labour protections.
Indonesia is actively negotiating with the US Trade Representative to secure better tariff rates following Washington's imposition of 10% duties on Indonesian goods under its forced labour investigation.
Malaysia has become subject to a 10 per cent United States tariff on exports following a Section 301 investigation into forced labour practices. The Ministry of Investment, Trade and Industry says it will continue engaging with US authorities.
The United States has announced additional tariffs of 10 to 12.5 per cent on 60 trading partners, including China, the EU, and India, for inadequately addressing forced labour in global supply chains.
The Trump administration has confirmed tariffs of up to 12.5% on South Korea, Japan and dozens of other trading partners, citing forced labour violations. The move replaces expired temporary duties and follows failed attempts at country-specific tariff strategies.
India has enacted a ban on importing goods manufactured through forced labour, a preemptive measure to shield itself from proposed US tariffs that could reach 12.5 per cent. The move reflects mounting global pressure on labour standards.