Southeast Asian currencies, stocks drop due to higher US tariffs
By: Marcus Wong and Eduard Gismatullin
(Bloomberg) — Southeast Asian currencies and stocks declined after Asian emerging nations were given some of the biggest tariff increases by US President Donald Trump.
The Thai baht slipped as much as 0.8% against the dollar, while the Malaysian ringgit and South Korean won also weakened. Singapore's main stock index fell as much as 1.3% before trimming losses, while Malaysia's dropped 0.7%. Southeast Asian equities were already some of the world's worst performers this year.
'The worst-hit region by this tariff announcement is undoubtedly Asian EM,' ING Bank analysts Padhraic Garvey and Francesco Pesole wrote in a client note. Global risk-off should be a common theme, and this should be accompanied by lower market rates, they said.
Southeast Asia was hit particularly hard by the reciprocal tariffs announced by Trump on Wednesday. The US will increase levies on Vietnam's exports 46%, Thailand's by 36% and Indonesia's by 32%. The region's largest trading partner — China — was heavily targeted, with Beijing now facing a cumulative 54% tariff.
Investors are now awaiting any retaliatory response from tariff recipients, which may further escalate global trade tensions. While nations such as Australia have explicitly ruled out retaliation, investors are watching a response from economies such as China.
—With assistance from Matthew Burgess.
More stories like this are available on bloomberg.com
©2025 Bloomberg L.P.
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