'Tariffs Are Like Medicine': Here's How Asian Economies Reacted to Trump's Tariff Waves

Five days after US President Donald Trump announced reciprocal tariffs against key economic players globally, Asian countries have been hit by the effect of said tariffs, causing massive dips in their local stock markets. In response to these side effects, Trump said that the world must endure these tariffs in the meantime and likened them to 'taking medicine.'

Speaking to reporters aboard Air Force One following a short trip to Florida, he said, 'I don't want anything to go down. But sometimes you have to take medicine to fix something.' His statement comes in response to European and Asian leaders' request to reduce tariffs amidst worsening stock market conditions and warnings from industry bodies of a possible recession.

China: US Tariffs Are 'Bullying'

One of the biggest economies globally, Trump imposed an additional 34% tariff on Chinese goods, bringing the total tariffs imposed on China to 54%. In response, China imposed countermeasures, including extra levies of 34% on all US goods and export curbs on some rare earths.

Moreover, more US organisations–mainly related to the defence industry–have been included in the country's 'unreliable entities' list.

Speaking earlier this week, foreign ministry spokesperson Lin Jian commented how the US's tariffs are a form of 'bullying', especially to poorer economies in the global South, highlighting the ever-widening gap between rich and poor countries.

'The abuse of tariffs by the United States is tantamount to depriving countries, especially those in the Global South, of their right to development,' he said.

China has recently contested Trump's reciprocal tariffs on the World Trade Organisation (WTO) over violations of the trade body's rules.

Japan: Negotiate and Avoid Confrontation

Meanwhile, the Trump administration imposed a 24% reciprocal tariff rate on Japan, resulting in a dip in investor confidence locally. This caused fluctuations in the Nikkei 225 index, with the stock market experiencing short-term volatility. Export-heavy companies like Toyota and Sony are declining due to concerns over reduced competitiveness and higher costs in global markets.

Speaking to media members, Economy, Trade and Industry Minister Yoji Muto said the government will explore various options and choose the best path for protecting national interests.

It's miserable and against our wish that the US government announced its decision to impose tariffs even though we have conveyed our concern at various levels and urged (the United States) not to take unilateral tariff measures,' Ishiba told reporters.

Despite the pressure the US is exerting on Japan, Prime Minister Shigeru Ishiba said the country is taking a measured approach to dealing with the new tariffs.

'We have no intention to engage in confrontation. While Japan is willing to cooperate in creating jobs in the United States, we also strongly urge the removal or reduction of tariffs to support that effort,' the prime minister said.

Singapore: Tariffs Threaten Growth

On 7 April, the Straits Times Index dropped sharply to 3,517, falling 8.06% or 308.53 points—nearing the 8.3% single-day crash seen during the 2008 financial crisis. This steep decline came in response to the United States announcement of a 10% 'baseline' tariff on all imports, which took effect on 5 April.

While Prime Minister Lawrence Wong has yet to address the parliament in response to these tariffs, he has previously warned that the global calm and stability that once existed 'will not return anytime soon'.

On the other hand, the country's Monetary Authority of Singapore (MAS) is expected to ease monetary policy further, given that US tariffs against Singapore's trading partners may cast a shadow over the outlook for the export-reliant city-state.

Malaysia: A Call for Regional Unity

On the other hand, Malaysia has received a 24% reciprocal tariff on its goods, and local leaders are calling for a unified goal across its ASEAN members, including flexible strategies on regional trade.

MINDA-UKM director Prof Tan Sri Datuk Seri Dr Noor Azlan Ghazali said Malaysia needs to reframe its response to the US tariffs by addressing the root concerns behind them.

'The tariff may be 24%, but what really bites are the non-tariff concerns. These issues reflect deeper structural friction in our trade and investment policies. We need to be honest about areas where we can improve and push forward with domestic reforms,' he said.

Meanwhile, Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz has acknowledged that while Trump's tariffs can be considered a 'red herring', this will have ramifications for smaller economies in the longer run.

'In the long run, it may lead to a decrease in Malaysia's GDP and a slowdown in global growth,' he said.

What Other Countries' Reactions to Tariffs Went

Thailand's Prime Minister Paetongtarn Shinawatra assured that the US decision to impose a 36% tariff on Thai imports—among the highest in ASEAN—will not affect Thailand's GDP. She emphasised that measures are in place, including restructuring import tariffs and forming a dedicated negotiation team.

Confident in achieving favourable outcomes through talks, Paetongtarn highlighted the importance of adjusting Thailand's import tax structure and reassured the public that the situation was controlled and managed.

Meanwhile, during a phone call with Trump, Vietnamese Party General Secretary To Lam expressed Vietnam's readiness to reduce tariffs on US goods to zero and urged the US to reciprocate for Vietnamese exports. Both leaders reaffirmed their commitment to strengthening bilateral ties and enhancing trade cooperation.

Lam also emphasised Vietnam's intent to increase imports from the US and support American businesses investing in Vietnam. Both sides agreed to pursue a formal trade agreement soon.

Lastly, NEDA Undersecretary Rosemarie Edillon said the Philippines expects minimal impact from the US's newly imposed 17% tariff on its exports. She noted that the country faces lower tariffs than its neighbours and highlighted Administrative Order No. 20, aimed at reducing non-tariff barriers. While the Philippines is open to lowering tariffs on some US goods, no official decision has been made. Officials will meet soon before possible negotiations with the US Commerce Department begin in the coming days.