Barclays(US:BCS) Hua Er Jie Jian Wen·2025-08-02 08:30Core Viewpoint - The implementation of Trump's "reciprocal tariff" policy has been finalized, with Singapore emerging as the biggest winner in Asia due to a 10% tariff rate, while Vietnam faces the highest value-added weighted U.S. tariff rate globally. The semiconductor and pharmaceutical industries are warned to face greater uncertainty despite current exemptions from broad tariffs [1][2][5]. Tariff Rates Summary - Singapore: 10% [2] - Malaysia: 19% (down from 25%) [2] - Thailand: 19% (down from 36%) [2] - Pakistan: 19% (down from 29%) [2] - Taiwan: 20% (down from 32%) [2] - Sri Lanka: 20% (down from 44%) [2] - South Korea: 15% [3] - Indonesia: 19% [3] - Philippines: 19% [3] - Vietnam: 20% [3] - India: 25% [3] Value-Added Weighted Tariff Analysis - Vietnam has the highest value-added weighted U.S. tariff rate at 2.3%, followed by Thailand, Malaysia, and South Korea in the range of 1.0% to 1.4% [5][6]. - The analysis indicates that Vietnam has a domestic value-added exposure of 15.1% to U.S. tariffs, while Thailand, Malaysia, South Korea, and Singapore have exposures of 9.0%, 8.7%, 6.9%, and 6.8% respectively [6][7]. - In contrast, the Philippines (3.1%), Indonesia (2.3%), and India (2.0%) have relatively lower risk exposures [7]. Semiconductor and Pharmaceutical Industry Risks - The semiconductor and pharmaceutical sectors are highlighted as facing potential tariff threats, with the U.S. Department of Commerce expected to announce results of a national security investigation into semiconductor imports, which may lead to new tariffs [8][9]. - A proposed 200% tariff on pharmaceuticals could severely impact Singapore, as pharmaceuticals are a significant part of its trade with the U.S. [8][9].