As Donald Trump eyes a second round of sweeping tariffs — including proposed levies on Southeast Asian countries like Vietnam, Indonesia, and Malaysia — the region finds itself squeezed between two economic giants: China and the U.S.
Businesses that once benefited from U.S. restrictions on Chinese exports may now be hit by new tariffs themselves. Entrepreneurs like Hao Le in Vietnam, whose electronics firm exports $2M/month to the U.S., fear the proposed 46% tariff could be “catastrophic.”
🔹 China is stepping up diplomatic efforts, with President Xi Jinping visiting Southeast Asia to solidify ties.
🔹 Many local manufacturers are bracing for an influx of cheap Chinese goods originally bound for the U.S.
🔹 Countries like Malaysia and Thailand are negotiating to protect access to U.S. markets, while also trying to maintain strong relations with Beijing.
🔹 Some see opportunity in the shift — Malaysia’s rubber glove industry, for instance, could benefit from U.S. buyers avoiding Chinese suppliers facing 145% tariffs.
The bottom line: Southeast Asia is being forced to rethink its economic strategy and resilience as geopolitical trade tensions escalate.
Read the full article at https://www.bbc.com/news/articles/c0455k6g71eo
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