US Tariffs on Transshipped Goods Hit Southeast Asia

The United States has imposed a new 40% tariff on goods transshipped through third countries to reach the U.S., a move aimed at preventing Chinese-made products from evading existing tariffs. This policy significantly impacts Southeast Asian economies, which have benefited from Chinese investment and components to manufacture goods for the U.S. market. Malaysia's experience as a major solar panel producer, now with only two remaining makers after a decade, serves as a case study of the potential economic damage. Countries in the region are now assessing the consequences of these tariffs, which disrupt supply chains reliant on Chinese materials and raise questions about enforcement and future trade strategies.