Rising anxiety is gripping Southeast Asia as the United States imposes new tariffs of up to 46 per cent on goods exported from countries including Vietnam, Thailand, and Indonesia. According to a recent survey by Milieu Insight, 90 per cent of respondents expect prices of everyday items to rise, with many already opting for locally made alternatives to cushion the blow.
Milieu Insight polled more than 6,000 individuals from Indonesia, Malaysia, Thailand, Singapore, the Philippines and Vietnam, providing a snapshot of regional sentiment amid escalating trade tensions.
“These findings show that people in Southeast Asia are already anticipating economic pressure from these new tariffs,” said Gerald Ang, Founder and COO of Milieu Insight. “There may be higher prices which means Southeast Asians would have to adjust their spending habits, and increasingly look to local products to fill the gap. This shift in sentiment could have lasting implications on both consumption patterns and economic slowdown in the region.”
Concerns Run Deepest in Vietnam and Thailand
Awareness of the new tariffs is widespread, with 73 per cent of those surveyed already informed of the policy changes. Vietnam and Thailand reported the highest concern levels – 78 per cent and 75 per cent respectively – about how tariffs might affect daily life.
An overwhelming 93 per cent of Thais believe the tariffs will negatively impact their country’s economy, marking the highest national concern in the region. In Singapore, 72 per cent of respondents voiced personal economic concerns, while Malaysians were slightly more muted at 63 per cent.
Local Products Gain Ground as Imports Lose Appeal
The tariffs appear to be pushing consumers to rethink their purchasing choices. Among those who typically prefer international brands, 87 per cent said they would now consider buying local products instead. Around 75 per cent said they would reduce their consumption of imported goods altogether.
Electronics and gadgets are seen as the most vulnerable to price hikes across all markets. In Singapore, 73 per cent identified electronics as the most affected category, followed by transportation and home appliances. Similar patterns were noted across the region.
Who Will Shoulder the Cost?
Singaporeans are among the most sceptical about how businesses will handle rising import costs, with 59 per cent expecting those costs to be passed on to consumers. Filipinos and Malaysians echoed similar sentiments. In contrast, Thais and Vietnamese respondents were more optimistic, expecting companies to roll out discounts and promotions instead.
Mixed Confidence in Government Response
The region remains divided over whether their governments can effectively manage the fallout. Confidence was strongest in Vietnam (81 per cent) and Singapore (66 per cent), while majorities in Thailand and the Philippines expressed doubts.
Looking ahead, 42 per cent of respondents support reducing reliance on U.S. imports by strengthening domestic industries. Another 40 per cent called for price controls, while a third said governments should introduce subsidies or pursue alternative trade agreements.
As U.S. tariffs raise the spectre of inflation and economic disruption, the survey reveals a clear shift in consumer sentiment – one that may reshape Southeast Asia’s markets and supply chains in the months to come.
