WASHINGTON – President Donald Trump’s newly announced reciprocal tariffs are set to hit some of the world’s poorest nations the hardest, threatening labor-intensive export industries and weakening one of the United States’ biggest economic advantages over China.
Cambodia faces Asia’s highest tariff rate at 49%, while Bangladesh was hit with 37%, Laos with 48%, and Lesotho with 50%. Myanmar, reeling from a devastating earthquake that killed more than 3,000 people last week, saw a 45% tariff imposed.
“Oh, look at Cambodia, 97%,” Mr. Trump said at the White House, pointing to the tariff rate the U.S. faces from Cambodia. “They made a fortune with the United States of America,” he added, drawing laughter.
The average Cambodian earns just $6.65 a day, according to the World Bank—less than a fifth of the global average. Analysts warn the tariffs could further damage economies already struggling, particularly as the U.S. has also pulled back on foreign aid.
Aid Cuts and China’s Growing Influence
Under Mr. Trump’s administration, thousands of U.S. aid contracts have been scrapped, diminishing Washington’s influence in developing nations. China is stepping in, increasing investments in places like Cambodia, Myanmar, and Bangladesh.
“It’s such a disaster,” said Deborah Elms, head of trade policy at the Hinrich Foundation. “Tariffs of nearly 50% overnight will be impossible to manage.” Many affected nations previously had duty-free access to the U.S. as Least Developed Countries and may now turn to European, Japanese, or Australian markets instead.
The tariffs were calculated using a new formula: a country’s trade surplus with the U.S. was divided by its total exports, based on 2024 U.S. Census Bureau data, and then cut in half to determine the final rate. That led to Madagascar receiving a 47% tariff, even as its economy struggles.
Bangladesh Considers Retaliatory Tariff Cuts
In Bangladesh, where garment exports rely heavily on the U.S. market, officials say they are reviewing tariff reductions on U.S. imports to mitigate the impact.
“Bangladesh is reviewing its tariffs on products imported from the United States,” said Shafiqul Alam, press secretary to interim leader Muhammad Yunus. “The National Board of Revenue is identifying options to rationalize tariffs expeditiously.”
However, analysts question the fairness of the U.S.’s methodology.
“This formula effectively punishes countries that rely heavily on the U.S. as a net buyer of their goods,” said Tommy Xie, head of Asia macro research at OCBC, adding that Cambodia and other small developing nations are particularly vulnerable.
Ripple Effects Across Asia
The tariff hike also raises concerns about an influx of cheaper Chinese goods into Asian markets as Beijing looks to redirect exports previously bound for the U.S. China itself faces a 34% reciprocal tariff, on top of 20% duties imposed earlier in 2025.
“China’s attempts to find new markets for goods previously destined to the U.S. will have to go somewhere, at least in the short term,” said Ms. Elms. “This is going to set up new tensions with neighbors.”
Cambodian government spokesman Pen Bona declined to comment, saying officials were still reviewing the tariff decision.
With developing economies scrambling to respond, the latest trade action signals a dramatic shift in U.S. policy—moving away from the post-World War II approach of fostering economic integration and instead embracing a more protectionist stance under Mr. Trump.