As Southeast Asia welcomes Trump, it battles headwinds unleashed by him
Summary
President Donald Trump's trade policies are affecting Southeast Asia's economy. New US tariffs are challenging the region, which is trying to balance its relationships with both the US and China.Key Facts
- In 2018, President Trump's trade war with China led manufacturers to move to Southeast Asia to avoid tariffs.
- The region benefited from new investments and technology due to the "China Plus One" strategy.
- Since President Trump returned to office, new US tariffs have put pressure on Southeast Asia's export-driven economies.
- In April, tariffs of up to 49% were imposed on countries like Cambodia, Laos, and Vietnam, although some tariffs have since decreased.
- A 40% tariff on "transshipments," goods routed through Southeast Asia to avoid tariffs on Chinese products, was announced.
- The Asian Development Bank lowered its 2025 growth forecast for Southeast Asia due to these trade challenges.
- Chinese exports to Southeast Asia have been increasing, while exports to the US have decreased.
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