[A photo shows Donald Trump making a speech, Photo Credit to pixabay]

As Donald Trump has been reelected for his second term in 2024, he stated that to make America great again, tariffs will be imposed on imported goods from Asian countries.  

On Monday, he stated on his social media that he promises to impose high tariffs on goods that are coming from Mexico, Canada, and China.

This imposition will start on the first day in office and he already promised to impose the tariff during his campaign trail.

There have been comments suggesting that this move will cause ripple effects on the economies and alter the current relationship between the United States and countries in Asia.

Critics note that this policy will negatively affect Asian economies, especially companies heavily reliant on the United States to bolster their economic growth.

In fact, of the top ten places the US imports from, six are located in Asia:  China, Japan, South Korea, Vietnam, Taiwan, and India.

Together,  these countries accounted for 32% of total US imports in 2023.

China will be significantly affected, as it exports $3.38 trillion abroad, with  the US accounting for 14.8%, approximately $501.2 billion.

Roughly 15% of the segment will be severely affected by this policy.

Trump has also announced an additional 10% tariff for imports from China, citing concerns over drugs produced from China that have crossed the US borders and affected the US economy.

Japan will also face similar challenges,  as 20.2% of its whole export goes to the United States.

Lastly, South Korea will be negatively affected as 18.4% is the export percentage to the US.

For South Korea, the US was the second largest export market after China.

In fact, there can be some countries that can benefit from Trump’s tariff imposition; some companies can relocate their company from China to other countries to avoid the tariff, which will benefit some countries.

Steve Madden, a shoe manufacturer based in China, once stated that it would halve its production to avoid Trump’s tariff and would instead source it from other countries such as Cambodia, Vietnam, Mexico, and Brazil.

Some claim that this will positively impact the US’s economy since the US had previously had a trade deficit with many Asian countries where its largest trade deficit was with China.

On the other hand, some even claim that while the trade deficit may decrease,  the overall prices of goods will increase since imports from Asian countries have historically kept costs low.

In addition, Trump also stated that he will place an order to impose a 25% tariff on imported goods from Canada and Mexico as well.

Economists say that his tariffs will effectively be a tax paid by Americans and they will face prices up at home as the companies pass on the increased production cost to consumers.

Philip Daniele, the CEO of AutoZone, stated “If we get tariffs, we will pass those tariff costs back to the consumer,” and highlighted the danger of high tariff imposition on Asian countries.

Many people are concerned about the global economic repercussions as Donald Trump  takes the office once again.