Following President Donald Trump’s recent declaration of a 25% tariff on steel and aluminum imports, multiple Asian economies are implementing counterstrategies to safeguard their economic interests and maintain trade balance with the United States.
Boosting U.S. LNG Imports
To offset potential trade imbalances and prevent further tariffs, at least six Asian countries have committed to increasing their liquefied natural gas (LNG) imports from the U.S. The move comes as Washington lifted restrictions on new LNG export permits in January, setting the stage for an estimated 100 million tons of annual LNG exports by 2031.
- Japan: As the world’s second-largest LNG importer, Japan is ramping up U.S. LNG purchases to reduce its $56 billion trade deficit with the United States.
- South Korea: The third-largest LNG importer globally, South Korea is boosting imports to ensure energy stability amid geopolitical tensions.
- India & Taiwan: Both nations are evaluating higher LNG imports from the U.S. to ease their trade surplus.
- Bangladesh: A deal has been signed to acquire 5 million tons of U.S. LNG annually.
- Vietnam: The country, which recently began importing LNG, sees increasing U.S. supply as a tactic to reduce trade pressure.
Taiwan’s Semiconductor Strategy Amid U.S. Pressure
Taiwan, home to Taiwan Semiconductor Manufacturing Company (TSMC), is taking proactive steps in response to U.S. tariff threats targeting foreign semiconductor manufacturing. As the Biden administration seeks to onshore semiconductor production, Taiwan’s Deputy Economy Minister Cynthia Kiang is engaged in negotiations with U.S. officials. Meanwhile, TSMC executives are meeting in Arizona to discuss potential countermeasures. Analysts caution that imposing tariffs on TSMC could disrupt existing U.S. subsidies and strain global supply chains.
South Korea’s Economic Outlook Declines
The Korea Development Institute (KDI) has lowered South Korea’s 2025 economic growth projection to 1.6%, down 0.4 percentage points from earlier forecasts. The revision reflects concerns that U.S. tariffs on steel, aluminum, and semiconductors could negatively impact the country’s exports. Additionally, domestic economic instability—including declining consumer spending and political turmoil following President Yoon Suk Yeol’s impeachment—adds to the country’s financial uncertainty.
Market Reactions and Future Projections
Asian financial markets responded unevenly to the tariff announcement:
- Hong Kong markets showed volatility
- Shanghai and Singapore indices declined
- Seoul, Sydney, and Taipei saw moderate gains
Meanwhile, gold prices skyrocketed to a record-breaking $2,938, as investors sought safe-haven assets amid rising trade tensions.
Economists warn that while these tariffs could reduce the U.S. trade deficit, they may also trigger inflationary pressures, supply chain disruptions, and retaliatory trade policies. The long-term global trade outlook remains uncertain, with both risks and strategic opportunities in play.
