The global trading landscape has been shifting rapidly in recent months, with rising tension between the U.S. and several of its trading partners. Washington announced the end of a 90-day pause on its so-called “Liberation Day” tariffs on July 9, and revealed plans to issue letters to as many as 12 trade partners ahead of 1 August, enforcing higher tariffs. President Donald Trump stated that the new levies would range from “60% or 70% tariffs to 10 to 20% tariffs,” though did not specify which countries would be affected.

Amid growing uncertainty, and reports that Asian economies are among the biggest targets, some countries managed to strike last-minute deals with the U.S., securing lower tariff rates than expected. Others, like China, faced more difficulty, reflecting weaker ties with Washington.

Tariff Negotiations with Asian Countries

Several Asian countries with robust tech industries and export-heavy economies made swift moves in the negotiation process, offering major investment pledges in exchange for lower tariffs.

Japan, for instance, agreed to a 15 per cent tariff — 10 percentage points lower than what had initially been proposed. As part of the deal, Japan committed to investing US$550 billion in the U.S. to support American industries such as semiconductors and pharmaceuticals. It also pledged to increase imports of American agricultural goods, including rice.

Japan’s agreement set a precedent for its neighbours. South Korea soon followed, also agreeing to a 15% tariff. Under its deal, Seoul pledged US$350 billion in investment, with 42% directed at establishing Korean shipbuilding operations in the U.S. and the remainder allocated to the technology and energy sectors.

The Philippines and Indonesia accepted a 19 per cent tariff, while Vietnam settled at 20 per cent. India a significant strategic tie to the U.S. is levied with a 25 per cent tariff, which is higher than other Asian countries, possibly a penalty for the country’s imports of Russian weapons and oil.

The rate on Chinese products has not yet been announced, but Washington and Beijing agreed to extend their trade truce by 90 days, which had been scheduled to expire on 12 August.

In parallel, Washington is tightening controls over the flow of AI chips into China. To curb suspected smuggling, the U.S. has placed shipping restrictions on countries like Malaysia and Thailand.

How Will It Impact Tech in Asia?

With tariff deals struck at lower-than-anticipated rates, there’s a sense of relief in many Asian economies, especially those reliant on exports from domestic tech giants to the U.S.

Japanese carmakers, for example, may gain a pricing edge over Chinese competitors with lower tariffs and fewer restrictions in the bilateral trade. In South Korea, chipmakers such as Samsung and SK Hynix — which already operate production facilities in the U.S. — stand to benefit from their government’s investment pledges.

Still, the tariffs are expected to leave a mark on the global tech industry.

Reports suggest Apple, whose supply chain heavily relies on manufacturing in China, Vietnam, and India, could face losses of more than US$1.1 billion due to the new levies — a blow that may lead the company to cut costs elsewhere.