Asia’s firm has to reshape its plans because of Trump’s tariff
(MENAFN) Tan Yew Kong, who manages operations in Singapore for one of the globe’s major semiconductor producers, compares his company’s work to that of a tailor’s workshop. "We provide the fabric, we provide the cufflinks and everything. You tell us what you like, what design you like and we make it for you," he explains.
But in the current climate, his firm isn’t just customizing chips for clients — it’s also reshaping its long-term plans in response to the unpredictable direction of U.S. President Donald Trump’s tariff policies.
With the 90-day pause on Trump’s steep trade duties — dubbed "Liberation Day" tariffs — ending on July 9, businesses and governments across Asia are bracing for what comes next. Many have been making diplomatic and trade gestures aimed at avoiding U.S. penalties, though the outcome remains uncertain.
Last Friday, Trump announced that the U.S. government would begin issuing letters outlining new tariff hikes, which are scheduled to take effect on August 1. He mentioned that around a dozen letters would be sent in the coming days, with tariff rates ranging between “60% or 70% tariffs to 10 to 20% tariffs,” though he did not disclose which countries would be targeted.
For now, semiconductors have not been hit by these tariffs — but repeated threats from the White House have left companies in limbo. The uncertainty is making it increasingly difficult for tech firms to make long-term business decisions.
Adding to the tension, recent reports suggest that the U.S. is preparing to impose stricter controls on the export of artificial intelligence chips. According to those familiar with the matter, new restrictions could limit shipments to countries like Malaysia and Thailand in an effort to prevent advanced technologies from being diverted to China.
The U.S. Commerce Department has yet to provide an official response regarding the proposed measures.
As the deadline looms, Asia’s high-tech industries are being forced to prepare for a future in which U.S. trade policies could dramatically reshape supply chains, investments, and global technology flows.
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