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Monday, 30 June 2025
Economy

The Asian factories on the frontline of Trump’s tariffs

The Asian factories on the frontline of Trump’s tariffs

As Asia’s manufacturing powerhouse tried to punish the US tariff before Donald Trump’s 9 July deadline, exporting orders throughout the region, cutting prices, looking for new customers and rethinking their relations with the world’s largest economy.

Trump’s blanket 10 percent tariff has already hurt countries dependent on exports for development, jobs and foreign currency – and the US President vows to implement the higher rates as long as they interact on new business deals, not destructive.

Journalists from Financial Times spoke to textile growers, electronics manufacturers and car suppliers who were trying to create an understanding of a market in the upheaval.

Nike suppliers looking to open factories elsewhere

Mussadak Zulkarnen of Interloop: ‘We have loyal, long -term customers’ © Assad Zaidi/Bloomberg

Pakistan

29%

Mutual fee

Buy a pair of nike-branded socks and one of Pakistan’s largest textile exporters, is a good opportunity from the internet. Interloop sells about $ 220MN goods to the US every year, which supplies a similar ratio of about 40 percent of nike socks and branded clothing of large box retailer targets.

In view of 10 percent universal tariffs of Trump, the Interloop had to cut prices for the target. A 29 percent tariff threatened On the goods sold to the US, its biggest customer could be disastrous, Chief Executive Officer Mussadak Zulkarnen said. “We have loyal, long -term customers who I think will stay for 12 to 18 months, even with 29 percent tariffs,” Zulcornain said. “But beyond this, I am very worried.”

How much production is in this production in Pakistan depends on the deal with Trump, not only by Islamabad but also Rivalry apparel producerLike Bangladesh and Vietnam. If the tariffs in Bangladesh decrease, the internet may revive a mothball factory there. Interloop, which operates plants in China and Sri Lanka, planned to open a factory in Egypt, which only faces 10 percent tariffs.

Meanwhile, the search for new buyers in Europe, including Russia, continues to be discovered, but Zulkarnain fears “fierce competition” from Chinese producers, which also have a lower cost after a possible high tariff.

“If the demand decreases [because of tariffs]We can probably maintain people living at home for two or three months, “Zulkarnen said.” After that, we have to start a le-off. , Hamza Jilani in Islamabad

LED manufacturer who thinks America is becoming less important

led lighting
Attractive LED: ‘Originally, American consumers will pay for us’ © sipa us/alamy

China

55%

Total fee

The demand for Charming LED floodlights, LED screens and lighting control was very good that the Chinese company opened a sales office in Los Angeles in 2016 – the year Trip won the presidential post for the first time.

Trump slapped tariffs on China in his first term. Nevertheless, almost a decade later, China has dominance of such light supply chain – it is responsible for 95 percent of American imports of LED lamps – that it holds the upper hand with customers, said Wanging, a marketing director of Charming LED.

“Originally, American consumers will pay for us. We are not those who are worried,” he said, “He lacked infrastructure to compete with rival manufacturing hubs like India, while America was unable to produce comparable items. “Chinese products are good and cheap, so why should they go to other countries?”

Since Washington and Beijing agreed Ceasefire treaty He said that 90 days of stagnation on tariffs in addition to 145 percent on Chinese exports, many American customers had resumed shipping orders, he said. While the initial deal stuttered, Trump said on June 11 that the total tariff on China would be 55 percent.

The orders of Wang’s customers are sent from the departure ports to “free on board”, which means that customers are responsible for logistics and tariff costs, once the goods are loaded on ships on Chinese ports. Some buyers are informed Send your goods to third countries To hide its Chinese origin for tariff purposes, a process known as the original washing. “We guarantee it only [the orders] Go to the ports and leave the ports. , , After reaching there, I don’t know what happens to them. ,

Charming sells its goods in 160 countries. Finally, Wang said, America will become “less and less important” for Chinese suppliers, which will focus on other markets including Europe, Asia and China.

“It used to be very important,” he said about America. “But [US tariffs] Will not affect us. It is just a part of the market. America does not represent the whole world. , Will Langli in Guangzhou

Chipmaker who will struggle to cut cost

Samsung W25 Flip
Chip supplier hopes that Samsung will carry it forward to cut prices © VCG/Getty Images

South Korea

25%

Mutual fee

Samsung Electronics and Chinese smartphone manufacturers, as supplier of chips for South Korea Dongwoon anatech Is correct in crosshair Trump’s trade warTusrap Apple and Samsung threatened With 25 percent tariffs on their devices until they transfer production in the US, Chinese smartphone exporters also face heavy tariffs.

Samsung, the chief customer of Dongwoon, did not ask for the price deduction, but if the US makes it good at its threat, it would definitely happen, Kim Dong-Chaol, the chief executive officer of the main manufacturer of the optimal image stabilization and the chief manufacturer of the autofocus chips who prevent camera shake and set focus points to automatically promote picture quality.

South Korea’s strict labor laws made it difficult to overcome the outgoing, Kim said. “There is a range of cost cuts,” he said.

Keeping this in mind, Dongwoon wants to expand into the Chinese market, where smartphones mostly sell goods in Asia and Europe. While it is competitive in China, Dongwoon is long established and one step ahead, Kim said, in terms of both design and customer service.

There is still pressure to cut the price, and not only from Samsung, Dongwoon said – its auto customer, Hyundai Motor and its affiliated, will probably follow the suit. Then, he looks ahead as to increase sales to companies and countries coming in contact with American tariffs. Geet Jung-e

Coffee maker who sees the US market as a step stone

Coffee beans put in a container
Wuong Than Kang: ‘We have decided to accept some losses in the US market’ © Minh Guyen/Reuters

Vietnam

46%

Mutual fee

Coffeer manufacturer Wung Than Kang Holding had a shipment of organic beans and ground coffee from the Central Hilands N Root in Vietnam, the day Trump slapped 46 percent of tariffs on the country’s exports. For fear of cancellation by his American customer, Wung Than Kang offered heavy discounts and took losses.

In recent years, more and more manufacturers are afraid of export curb and tariffs To Vietnam As part of a growing “China plus a” strategy to resume global supply chains. Yet Vietnam is also a major commodity manufacturer, who is the second largest exporter of coffee after Brazil. There are about half of Wuong Than Kang exports in the US.

Chief Executive Officer Guyen Van Hype hopes to include the same more in the coming months – American buyers will be offered exemption to maintain access to the US market. In the long run, they hope, their presence in the US will help them gain risk and access to other markets.

“We have decided to use our access to the US market as evidence of quality to accept some losses in the US market and get access to other markets,” HIEP said. Damage can also be short -lived. “If Democrats or others come to power in America, it can change.”

Nevertheless, 46 percent levy – if it sticks – the company’s monthly profits would fall by 15 percent, the chief executive said. Finally, it makes sense to look else else. “In the future, the American market will be an important market, but it is not the only market.” A.Anantha Lakshmi

Auto component firm offers customers the choice of global factories

Masao Tsuru
Masao Tsuru: ‘There is a chance that our blocks will increase’

Japan

25%

Auto tariff

With factories in 15 countries, the Japanese auto supplier Nok has tried to make it easier to supply the series turmoil by interacting on tariffs for customers and offering them an option, even to offer a menu of options.

Chief Executive Masao Tsuru said, “Since our rivals should export from places like Japan, Mexico, Canada or China without the US base, we have started communicating with our customers that we can supply them from within America – and because of this, there is a chance that our volume will increase,” said the Chief Executive Masao Tsuru.

Nevertheless, car companies should undergo long approval procedures for new parts, which means they cannot change their suppliers easily or quickly.

Its global network of factories is an advantage for Nok, as the fact is that unusually among the Japanese auto suppliers, it has not given its luck for a single domestic car manufacturer and has long been done to European, American and Chinese customers instead. Analysts, including Bernstein, say that the Japanese car manufacturer may be one of the worst hits from Tariffs, 25 percent for auto-related goods and 24 percent on other items.

The future for Nok can not only lie outside Japan, but can be more anytime outside the US. Its plan – as well as heavy duty machinery, semiconductor parts and energy to diversify their business with Chinese EV manufacturers. Tsuru is also on hunting for acquisitions, especially tariff -affected suppliers whose products can be integrated into its US supply chain or help accelerate their axis away from cars. Harry Dempi

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