Tariff turmoil: Asian exporters brace for impact as Trump’s deadline looms

As Donald Trump’s July 9 tariff deadline approaches, exporters across Asia are scrambling to adjust to sweeping new trade barriers.

The Financial Times' article dives into the responses of manufacturers from Pakistan, China, and South Korea, all of whom are bracing for economic disruption caused by Trump’s blanket 10 per cent tariff and looming threats of even harsher penalties.

The impact has been particularly severe on countries dependent on US markets for growth, jobs, and foreign currency. From textiles to semiconductors, companies are being forced to reevaluate pricing, supply chains, and long-term strategies.

One of the hardest-hit is Interloop, a major Pakistani textile exporter that supplies socks to Nike and clothes to Target. CEO Musadaq Zulqarnain said that while long-standing customers might stay for “12 to 18 months” despite possible 29 per cent tariffs, the longer-term outlook is bleak. Interloop has already cut prices for Target and is actively considering relocating some production to lower-tariff countries like Egypt or restarting operations in Bangladesh.

Zulqarnain warned: “If demand goes down, we can maybe sustain people staying at home for two or three months. After that, we would have to begin lay-offs.”

The story is different in China, where LED manufacturer Charming LED appears less concerned. Marketing director Wang Chengming was candid: “Basically, American consumers will pay for us. We are not the ones who are anxious.”

He claims China’s dominance in LED supply means customers have little choice, and some are even rerouting shipments to third countries to avoid US tariffs in a practice known as "origin washing."

Though the US once played a central role, Wang now sees it as “just one part of the market,” adding, “The US does not represent the whole world.”

Meanwhile, South Korea’s Dongwoon Anatech, a chipmaker supplying Samsung and Chinese smartphone producers, is feeling the squeeze. CEO Kim Dong-cheol said cost-cutting is difficult due to Korea’s strict labor laws.

 “There is a limit to cost-cutting,” he admitted, especially with Samsung and Hyundai likely to request discounts if tariffs are enforced.

Dongwoon is pivoting toward markets less exposed to US influence, such as Southeast Asia and Europe, while continuing to rely on its strong design and customer service reputation.

This cross-section of responses underscores the broader anxiety rippling through Asia’s export economies. From contingency plans and layoffs to geographic diversification, these manufacturers are confronting a new era of trade unpredictability. 

By Sabina Mammadli