ASEAN summit in danger: Trump's tariffs put a lot of strain on Southeast Asia!

ASEAN summit in danger: Trump's tariffs put a lot of strain on Southeast Asia!

Kuala Lumpur, Malaysia - A turbulent meeting of the Asean state and government heads in Kuala Lumpur recently examined the challenges that arise from the unpredictable US customs policy. The summit, which took place on May 26 and 27, was strongly overshadowed by Donald Trump's punitive tariffs, which significantly affect the economically rapidly growing region in the Southeast Pacific. According to Tichys insight , especially countries like Cambodia, Vietnam and Malaysia are hit, with the excitement of the tariffs on Cambodia 49% 46% and 24% on Malaysia.

In April 2025, Trump announced a 90-day suspension of the tariffs for most of the world. This measure came shortly before a similar agreement with China, which seemed to be easy to defuse the tensions in the trade war. Nevertheless, uncertainty about future US customs policy remains noticeable on the market. Vietnam in particular, which has a well -developed export industry, could face major challenges due to the constant interchangeability of the tariffs.

The position of the Asean countries

The heads of state of the Asean countries, which include Indonesia, Thailand and the Philippines, are concerned that the region could be flooded by cheaper Chinese goods if the tariffs stop on the US products. They pursue pragmatic "bamboo diplomacy" that emphasizes flexibility and resilience. This enables the ASEAN countries to build equivalent relationships with both China and the USA without having to choose between the two major powers.

An important goal of the summit was to create bilateral agreements with the United States that take into account the interests of the entire region. Malaysia emphasized that decisions should not be made at the expense of other countries, and a summit is aimed at Trump to discuss the tariffs. Nevertheless, the Asean countries are skeptical, since a US court on May 29, Trump's tariffs as not approved by Parliament, only to put them back into force a short time later. This unstable case law contributes to uncertainty on the market.

The effects on the economy

The trade war between the USA and China has now reached critical proportions: the mutual tariffs amount to over 100 percent, which makes trade almost unaffordable. The economy faces an increased risk of recession, not only in the USA, but also worldwide. Trump himself appreciates the short -term negative effects of tariffs as low compared to the long -term advantages he promises from his approach. According to Coface could increase the price increases for industrial products and thus make some products unprofitable.

The US economy depends heavily on global markets, which is also evident in the current economic indicators: the value of the US dollar has fallen and increasing inflation rates and a possible increase in unemployment are predicted. Trump sees the tariff a way to reduce the trade deficit and bring foreign capital into the country. However, this attitude could lead to a loss of confidence in the US government and ultimately to a capital escape.

The undisclosed situation makes it increasingly difficult for the Asean countries to consolidate their trade strategies and minimize dependencies. In this way, an increased expansion of relationships with China is likely to counteract the uncertainties.