Trump 2.0 is forcing Asian economies to make hard choices fast

His campaign promises suggest an even more aggressive stance on tariffs than his first term, with proposals for a universal baseline tariff of up to 20 per cent on most imports and potential tariffs as high as 60 per cent on Chinese-made goods. These signals alone are prompting Asian countries to re-evaluate their supply chains and investment strategies before he takes charge.

The Trump administration’s aggressive stance towards China during his first term, marked by the trade war which began in 2018, fundamentally altered the economic relationship between the world’s two largest economies.

Trump’s approach to import tariffs aligns with his “America First” economic vision, emphasising the protection of US industries to address trade imbalances. His first-term policies targeted what he described as unfair trade practices, intellectual property theft and the erosion of US manufacturing jobs, particularly in relation to China.