Factories under threat, Southeast Asian countries look to court Trump to ease the pain

Vietnam, Thailand and Cambodia have for years worked to turn themselves into alternatives to China for factories making the bags, electronics, shoes and auto parts that eventually end up in the United States. Now, they will face some of the most punishing tariffs.

All three countries have said in recent days that they’re open to negotiations over the “reciprocal tariffs” Trump announced this week, while Singapore, a finance and trade hub, has said that it doesn’t plan to strike back.

The offers come as nations worldwide weigh how to respond to Trump’s decision to slap tariffs from 10% to as high as 50% on every country. Since his announcement, trillions of dollars in market value have been wiped out globally and triggered widespread recession alarms. Southeast Asia’s offers to negotiate contrast with China’s immediate retaliation, while the European Union is preparing its own countermeasures if talks fail.

Trump and Vietnam's leader To Lam have agreed to discuss a deal to remove tariffs, both leaders said after a phone call that Trump said was «very productive», as Hanoi has escalated its campaign to dodge duties of 46%.

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Without a deal, the 46% U.S. tariff would apply to imports from Vietnam from April 9. The country's benchmark stock index has fallen 8.1% since Trump announced the tariffs two days ago.

Vietnam serves as a major manufacturing base for many Western companies, had a trade surplus with Washington, which exceeded $123 billion last year.

About half of all Nike brand shoes and 39% of Adidas shoes are made in Vietnam, according to regulatory filings, with the country being the largest supplier of footwear for both companies.

Shares of Nike, Adidas and Puma dropped sharply after Vietnam was