Chart Explainer: Trump’s Reciprocal Tariffs Can Hurt Asia

Chart Explainer: Trump’s Reciprocal Tariffs Can Hurt Asia

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If you’re sick of hearing about tariffs, we’ve got bad news. President Trump’s initial salvo with Canada and Mexico was only the start.

After all, as the world’s largest economy, the U.S. is an important trading partner for several countries around the world. And all these relationships are now in the spotlight.

This chart highlights the difference in tariffs implemented by seven Asian economies on U.S. goods and vice versa.

These discrepancies are the reason the current president is talking about reciprocal tariffs—not just for Asia, but for every U.S. trading partner.

Data is sourced from CNBC, as of 2024.

Trump Wants to Balance All of America’s Trade

Tariff is President Trump’s favorite word, and now it’s looming large over Asia.

Seven of Asia’s largest economies (excluding China and Japan) tariff American exports to their countries at a higher rate than the U.S. currently tariffs their exports.

Of them, South Korea had the biggest discrepancy. U.S. exports to the country attracted more than 13% in tariffs, while the U.S. only placed 1.9% in extra charges for South Korean exports.

Vietnam has the least difference, but that doesn’t mean it can escape some levies. The country runs a $124 billion trade surplus with the U.S., its largest trading partner.

This translates into a trade deficit for the U.S., which has also irked President Trump in the past.

Reciprocal Tariffs: What Do They Do?

In simple terms, President Trump wants to balance the duties placed on foreign goods entering the U.S., in accordance with what America’s trading partners do with U.S. goods entering their country.

“Very simply it’s if they charge us, we charge them.” — President Donald Trump, February 9th, 2025.

Since many of these Asian countries have tariffs that are significantly different from the U.S., their exports can get quite a bit more expensive for Americans, which may reduce demand.

Why is there an imbalance to begin with? Most of these Asian countries are developing economies, trying to boost their own domestic industry. Tariffs are a way of disincentivizing foreign imports, making them more expensive for consumers, so that they buy domestic.

However all of these new charges to goods entering the country will increase prices for American consumers, and companies with cross-border supply chains. They may also trigger retaliation from other countries.