Trump imposes heavy tariffs on Cambodia, Vietnam: Why is China to blame?

During Donald Trump's Rose Garden speech, a key surprise was the high tariffs on Cambodia and Vietnam, which the White House says China uses to bypass US trade penalties

US President Donald Trump has fired the biggest shot yet in his war on foreign trade practices, unveiling massive tariffs that will hit Cambodia (49 per cent), Vietnam (46 per cent), and China (34 per cent) the hardest. The White House is calling it a "historic win" for American workers, while critics warn it could spark a global trade war and drive the US toward higher prices, job losses, and even a recession.  

 

Standing in the Rose Garden, Trump called the tariffs a long-overdue reckoning for decades of economic exploitation, holding up a chart and casting the move as a fight for America’s survival.

 

 

"Foreign leaders have stolen our jobs. Foreign cheaters have ransacked our factories. And foreign scavengers have torn apart our once-beautiful American dream," he said, adding, "Today, that stops. Today, we take back control."  ALSO READ | Donald Trump unveils sweeping tariffs on all imports: Here's the full list 

 

While China has long been Trump’s top trade target, Cambodia and Vietnam are now unexpectedly in the crosshairs—and the White House says Beijing is to blame.  

 

Cambodia and Vietnam: China’s secret weapons?

 

The White House accuses Beijing of using these countries as front lines in a massive tariff-dodging operation, funneling goods through them to avoid US penalties. Now, Trump is hitting back harder than ever.

 

A senior administration official told Nikkei Asia that both countries are acting as transshipment hubs—meaning China is rerouting goods through these nations to avoid US tariffs.  

 

"For every dollar we sell to Cambodia, they sell us $39. And the reason Cambodia sells us anything at all is because China is using it to get around our tariffs," the official said.  

 

Vietnam, he added, is just as guilty, claiming that factories labeled as Vietnamese manufacturers are, in reality, nothing more than warehouses where Chinese-made products are rebranded and shipped to the US as ‘Made in Vietnam.’  ALSO READ | Trump's 27% tariff on Indian exports: Who gains and who takes the hit?

 

This crackdown signals that Trump isn’t just taking on China directly—he’s also going after the countries that help China game the system.

 

Who’s facing the heaviest tariffs?

 

The highest reciprocal tariffs are hitting Asia-Pacific nations the hardest:  

 

• Cambodia – 49 per cent

• Vietnam – 46 per cent

 

• China – 34 per cent

• Laos – 48 per cent

 

• Myanmar – 44 per cent

• Sri Lanka – 44 per cent

• -Thailand – 36 per cent

• Bangladesh – 37 per cent

 

Even close US allies aren’t safe:  

 

• Japan – 24 per cent

 

• South Korea – 25 per cent

• India – 26 per cent

 

• Australia & New Zealand – 10 per cent

 

The baseline 10 per cent tariff applies to all imports, while these higher tariffs apply only to countries with large trade imbalances or trade practices deemed unfair by the Trump administration.

 

Is this the end of free trade?

 

For decades, the US has championed free and open trade, pushing countries to lower tariffs and eliminate trade barriers. But Trump is rewriting the rules, embracing economic nationalism and calling for a self-sufficient America.    ALSO READ | Trump's new tariffs target dozens; but why is Russia off the hook?

 

Vice President JD Vance, a key architect of Trump’s trade policies, also made it clear that the administration rejects traditional economic theories about global trade.  

 

"The idea that design and manufacturing can be separated is simply wrong. We must bring the entire supply chain back to the US," Vance added.