Business · Trade · 5 hrs ago

US tariffs risk weakening ties with Southeast Asian trade partners

US tariffs risk weakening ties with Southeast Asian trade partners

The Trump administration’s tariffs are hitting Southeast Asian economies, including countries in the Association of Southeast Asian Nations, or ASEAN.

For years, Washington encouraged companies to move production from China to countries such as Vietnam, Malaysia, India and the Philippines.

This “China plus one” approach aimed to spread supply-chain risks while building links with friendly countries.

After the Supreme Court struck down much of the initial tariff regime in February, the administration turned to other legal measures and investigations.

Broad tariffs are raising costs for regional exporters, US importers and consumers, while the commentary says they have not significantly changed trade deficits or brought production back to the United States.

The policy may weaken US influence in a region balancing ties with China, even though ASEAN countries do not want to be dominated by Beijing.

The administration’s next steps are not specified.

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