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February 6, 2025

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The Ascension to Power

As Trump is re-elected, new reforms and policies are taking shape. Among them is his threat to impose a 25% tariff on Mexico and Canada, alongside a 10% tariff on China—claiming these countries allegedly failed to address illegal immigration and co-conspirators for illegal fentanyl distribution in the United States (US). 

Yet the article is not to stir political debate but to explore the ramifications of these tariffs on consumers and Asian countries. While many news outlets have focused on the potential setbacks in the affected countries, few have explored how others might either suffer or benefit from the situation. Hence, this piece shall highlight how Trump’s ascension to power might become the best opportunity for some Asian economies.

The Price of Tariffs

The Guardian defines a tariff as a tax imposed on foreign goods entering a country. As the world’s largest importer, the US brought in $3.2 trillion worth of goods in 2022, with imports from Canada, Mexico, and China totaling $1.2 trillion in 2023. Trump takes pride in this idea, believing the US government would receive more revenue through these tariffs, coining tariffs as the “most beautiful word in the dictionary” in an interview with Bloomberg. 

Brown University Professor of Economics Şebnem Kalemli-Özcan disagrees by arguing, “For many economists, tariff is actually the worst word in the dictionary.” She explains that ultimately American consumers and businesses will pay the price. As a trade-deficit nation, the US imports more than its exports. According to the Tax Policy Center, a 60% levy on Chinese goods accompanied by a 20% worldwide tariff could raise the costs for the average US household to up to $3,000 in 2025.

As companies face higher costs for goods, they often transfer those expenses to consumers through price increases. This can reduce consumer spending, which in turn lowers business investment and may lead to job losses.

Jason Miller, a professor of supply chain management at Michigan State University reaffirms such claims stating, “Because of the combination of these three countries, it’s going to be difficult to go down an aisle of a grocery store and not see some sort of inflationary effect.” Capital Economics projected that the newly announced tariffs could drive annual inflation up from 2.9% to as much as 4%.

Products affected by Trump’s Tariffs (Image source: BBC)

Nevertheless, Trump’s tariff threats carry weight, as they could impose significant economic pressure on targeted countries, prompting businesses to relocate. According to the BBC, Chinese factories with 500 workers have shrunk to just 200 employees, while American buyers are already exploring alternative manufacturing hubs in neighboring regions outside of China.

Business owner Huang Zhaodong, who recently relocated his factory, told the BBC that customers had pressured him to move production overseas. He agrees with their concerns, estimating that a 10% tariff increase could cost him an additional $800,000 in earnings. “Manufacturing clothes in China under these tariff conditions is simply unsustainable,” he said.

A Victor Emerges

Cases like Mr. Huang’s have proved the challenges that Trump’s tariff has imposed on countries like China. The beginning of the Trump trade war has led businesses to flee to Southeast Asian nations, most notably Vietnam. 

While other Southeast Asian nations also benefit from shifting supply chains, Vietnam has emerged as a top destination due to its growing industrial capacity and strategic location. The country recently rose to become the Association of Southeast Asian Nations (ASEAN) champion with an estimated 40% of all ASEAN exports to North America being from the country alone. Though it is difficult to quantify how many businesses have relocated from China, BBC reports that major brands like Puma, Nike, and Adidas have already moved production to Vietnam. Sources from Vietnam Briefing indicate Intel and Samsung have rapidly ramped up their investment in Vietnam and are projected to reach $100 billion in revenue by 2050. Propelled by robust exports and foreign investments, Vietnam’s economy has recently grown by 7.09%, reaching $476.3 billion—outpacing the 5.05% expansion seen in 2023.

It is debatable whether Trump’s glare will graze upon this nation. Experts debate whether he will target Vietnam with tariffs, as his trade policies often focus on countries with a trade surplus. In 2024, Vietnam held the third-largest trade surplus with the United States at $104.6 billion, accounting for nearly 30% of its total exports. This substantial trade imbalance makes Vietnam a potential target for Trump’s tariff threats. In this scheme, the nation might experience radical changes due to trade balances, exchange rates, supply chains, and foreign direct investment (FDI). However, Vietnam is more likely to benefit from US-imposed tariffs. This prediction is supported by trends from Trump’s first term when the country experienced significant economic growth due to an influx of manufacturers and factories relocating to Vietnam. 

Despite lingering skepticism, Trump has maintained a favorable view of Vietnam. As early as 1980, Trump publicly opposed the Vietnam War and visited the country twice during his first term. His business ventures have also extended to Vietnam, with his organization partnering with Kinh Bac City Development Holding Corporation (KBC) to develop a $1.5 billion complex in Hung Yen Province. Meanwhile, his new confidante, Elon Musk, has positioned Vietnam a key production hub for SpaceX’s Starlink satellite internet project, shifting suppliers and manufacturing from Taiwan to Vietnam to reduce geopolitical risks.

Reversing these investments may be impractical or simply too late. The confidence that both Trump and Musk have placed in Vietnam highlights the country’s growing role in global supply chains. Amid rising geopolitical tensions, Vietnam’s diplomatic strategy—often referred to as the “bamboo policy” for its balance of resilience and adaptability—has strengthened its international position. As long as the country continues to wisely navigate political and diplomatic negotiations and steer clear of populist pitfalls, Vietnam is well-positioned to sustain its economic growth and global influence.

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Korean Startup Dongnae Makes Apartment Hunting More Affordable And Accessible

Its key product, Dongnae FLEX, offers short-term, fully-furnished rentals with low deposits, appealing to fresh graduates or travelers unable to cough up the hefty deposits typically required of Korea’s apartments.

Former WeWork executives Insong Kim and Korean-American Matthew Shampine founded Dongnae in 2020. They are “Making it a better experience for the brokers, for the landlords, and especially for the tenants,”  Shampine said in an interview.

Dongnae has welcomed local and global investors. Its $21m series A funding round in March included Lyft and Doordash backer NFX, Airbnb backer MetaProp, and Korea’s oldest investment fund Daol Investment and Hana Financial.

More than 80% of Korean household wealth is in real estate, but it’s increasingly harder to become a homeowner. In Seoul, South Korea’s capital and most populated city, the average apartment price doubled between 2017 and 2021.

The startup company began as a listing platform for renters to book agency visits, but it was unsuccessful. Shampine believes the business model’s early failure generated “good and healthy” but painful reflections. According to Forbes, conversations with customers, brokers, and team members on the ground informed Dongnae’s goal of “becoming the supply, instead of hunting for the supply.” 

The firm switched to serviced apartments in July 2021. At the end of its current investment, the business had 60 apartment buildings; now it has 80 across 12 Seoul districts.

Dongnae wants to offer more home services to its residents in the future, taking advantage of Korea’s booming market for furniture and other lifestyle goods.

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Lush Enterprises CEO Kim-Manzolini Took Trading To The Next Level To Build Her Empire

Who wouldn’t want to engage in something that generates value? It took a while before you could achieve something like this. You had to be determined and keep going to get through the process. 

Think about how CEO Sun Yong Kim-Manzolini runs Lush Enterprises as an entrepreneur and, at the same, an investor. After working in the medical field for 33 years, she transitioned into entrepreneurship and trading options. She used her same can-do spirit and created opportunities.

All of her struggles, Kim-Manzolini told the USA Today, have helped to mold her into the woman she is today. She grew up as an orphan in Korea and was adopted by an American couple at 14. As an adult, she got into an unhealthy relationship but eventually got the courage to leave and move forward.

Kim-Manzolini knows that changing careers requires a great deal of hard work and self-control on her part. For years, she dedicated many hours per day to studying the ins and outs of the options trading industry and eventually mastered it. She simply had faith that she could pull it off, so she gave it her all without holding back.

Trading options expose investors to a diverse range of potentially significant risks. Even a single misfortune can completely wipe out a trader’s profits on the foreign exchange market due to the high risk associated with trading. But Kim-Manzolini did not let the challenges she faced discourage her, as she started gaining a new perspective on the situation. Instead of questioning why her experience was challenging, she adopted the mantra “Why not me?”

And as a result, she made $178,000 in her first year of live trading. Kim-Manzolini is now the owner of a multi-million dollar business. Her understanding of how to trade successfully was aided by the incredible commitment and sacrifice she made. 

The fact that Kim-Manzolini didn’t give up when it would have been simpler to do so is something for which she is grateful. She decided to focus on the positive aspects of the situation rather than ruminating on the potential downsides. She also put in a lot of time and energy and came up with a unique approach.

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29-Year-Old Wedding Guitarist Made A Pandemic Pivot To Real Estate Earns $245K A Year

The best part is that playing weddings “doesn’t even feel like working. We’re just partying.” Moses Lin told CNBC Make It’s Millennial Money series.

Early in Lin’s career in 2016, he played at a coffee shop for three hours and got $3 tips. Today, his work takes him from New York to Hawaii, even to Cancun, and earns $175,000 before tips.

In the last two years, Lin has invested most of his wedding earnings into real estate.

Before becoming a real estate investor, Lin left college with just one semester left to pursue music full-time back in 2017. Several months later, Disney saw his YouTube videos and hired him to play in Disneyland’s hotels and restaurants. He took the job and decided he was never going back to college.

In the same year, Lin played a friend’s wedding as a favor and enjoyed it. He then charged $250 for his first wedding booking. After learning that wedding musician rates are $1200, he doubled his prices. Despite raising his rates, clients kept coming. Now, he charges $4,000 to $6,000 per wedding, depending on when the couple wants him to play. 

Lin became interested in real estate investing in 2014 and bought his first property in May 2020 as a “pandemic pivot” when Covid restrictions slowed his wedding gigs. He found a 4-bedroom house for $120,000 online and put down 20% plus $10,000 to renovate. His wedding earnings helped him buy a $40,000 home in Little Rock, including closing costs.

He rented the house for $1,425 and quickly found a tenant. He liked the process so much that he decided to buy a second property before the end of the year.

Today, Lin owns and rents out four properties in Little Rock. Lin didn’t turn a profit on his rental properties in 2021, but is in it for the long haul.

His goal with real estate is to get to a point where the passive income from his rentals pays all of his bills.

Lin pays a property manager to handle things on the ground, “so I’m able to focus 100% of my attention on weddings [and] on music, and real estate just makes money on the side.” he tells CNBC, “My whole master business plan is make money in weddings, dump it into real estate and let that grow itself.”

CONNECT WITH MOSES LIN

Instagram: instagram.com/moseslinmusic
Website: moseslinmusic.com

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GGV Capital’s Jenny Lee: From Jet Engineer To One Of World’s Best Venture Capitalists

Recognized as one of the world’s top 100 venture capitalists by Forbes for 11 years in a row, Singaporean venture capitalist Jenny Lee stayed in her hometown to raise money for four new funds launched by her firm GGV Capital at the height of the pandemic in 2020. 

For four months, according to Forbes, the veteran VC barely slept as she made 250 zoom calls and remotely raised $2.5 billion from investors around the world. Lee and her team raised the most capital in GGV’s 22-year history, boosting assets by 27% to $9.2 billion. 

Long before she became one of Asia’s most powerful businesswomen, she earned a bachelor’s and master’s in Electrical Engineering at Cornell in 1995. She became an aviation engineer at Singapore’s ST Aerospace, where she modified F-16 fighter planes.

In 2001, the company sent Lee to attend Northwestern University’s Kellogg School of Management where she earned an M.B.A., but she had wanted to be a venture capitalist for a long time, so she quit her job that same year to follow her hidden passion.

Lee paid ST Aerospace $300,000 for not finishing the 11-year scholarship bond that paid for her bachelor’s, master’s, and M.B.A., but she has no regrets. For her, it was the best move.

She got her start as a venture capitalist at Morgan Stanley and Jafco Asia, but she made her name in China after joining GGV to create its office there in 2005. One of Lee’s more successful discoveries was the mobile phone maker Xiaomi before it had sold its first handphone.

Today, Lee is one of GGV’s top-tier managing partners along with Singaporean Jixun Foo, an early Grab investor. Hans Tung, who’s been on the Midas List 11 times. And VCs who have U.S. investment, industrial, and entrepreneurial expertise.

GGV’s 354 firms are balanced between Asia-Pacific and the Americas (GGV claims its investments include more than 85 unicorns). With the U.S. having more investments, at roughly 130, and 77 in China.

The company’s assets under management have expanded more than 50 times since its founding in 2000.