3 ways Asean can survive Trump’s tariff war – and 4 ways China can help
Amid escalating global trade tensions, Southeast Asian nations must stick together and diversify their options to mitigate external shocks
This has unleashed a profound shock wave across the Association of Southeast Asian Nations (Asean). For the regional bloc, these tariffs transcend mere economic concern; they constitute an existential threat that could destabilise entire societies and ignite sociopolitical volatility. This necessitates an urgent recalibration of regional strategies and a critical reassessment of partnerships, notably with China.
The rationale underpinning reciprocal tariffs – a simplistic equation that matches tariffs to perceived trade imbalances – fundamentally ignores the intricate realities of modern production. Asean members are integral components of a complex global network, contributing substantial value to finished products. To penalise them for this role is to undermine the very foundations of international commerce.
Vietnam’s electronics exports – an estimated 34 per cent of its total exports in 2024 – are particularly imperilled. A significant portion of these exports are destined for the US market. A 46 per cent tariff could precipitate billions of dollars in lost revenue, directly affecting the livelihoods of millions employed in this vital sector.