Thai Times

Covering the Thai Renaissance
Wednesday, Apr 30, 2025

ASEAN Faces Challenges in Dealing with US Tariff Surprise

Universal trade tariffs jeopardize the regional growth framework and edge Southeast Asia towards different partners.
The expansive new tariff regime introduced by the United States is delivering a significant setback to ASEAN economies, which have long relied on exports for their growth. With the US and China representing nearly a third of ASEAN’s total merchandise exports in 2023, the region's susceptibility has been starkly revealed. Tariff rates reaching as high as 49% on goods from nations such as Cambodia and Vietnam are jeopardizing critical sectors, from textiles to electronics.

However, the tariffs have implications that go beyond economic distress; they are also altering the geopolitical landscape of the region. The approach taken by the Trump administration, which focuses on trade deficits and Chinese trans-shipment, has estranged vital partners without considering the importance of bilateral engagement or non-tariff barriers. Despite Vietnam’s and Japan’s attempts to mitigate punitive measures by lowering tariffs or boosting imports from the US, they have seen little relief. In response, ASEAN nations are accelerating their diversification strategies, establishing stronger trade connections with Europe, the Gulf countries, and even BRICS members.

As the US risks becoming less competitive in Asian supply chains and potentially nudging regional allies toward China and other partners, the long-term repercussions may be more political than economic. Experts contend that a blanket tariff approach erodes trust and jeopardizes Washington’s leadership potential in the Indo-Pacific. Only by transitioning to a partnership-driven trade model can the US maintain its influence in a region that is crucial to global power dynamics.
Newsletter

Related Articles

0:00
0:00
Close
Thailand Challenges Moody's Negative Rating Outlook Decision
Bangkok Officials Explore Waste and Air Quality Solutions in Paris
Six Major Casino Operators Prepare Bids for Thailand’s Entertainment Complex Project
President Trump contacts Jeff Bezos after reports of Amazon considering listing tariff surcharges; company clarifies no such plan for main platform
Polish Couple Arrested for Public Nudity on Thai Island
Liverpool Clinches Record-Equalling 20th English League Title Under Arne Slot
Thailand Proposes New Special Economic Zones in Northern and Northeastern Regions
Thailand Launches Verification Process for Foreign Mobile Phone Users
Thai Airways' 2021 Layoffs Deemed Lawful by Court Ruling
Thailand and Luxembourg Explore Financial Hub Cooperation
Thailand Marks World Health Day 2025 With National Campaign to Strengthen Care for Preterm Infants
Thailand and Vietnam Strengthen Defense Cooperation Amid Regional Security Challenges
Thailand Convicts Former Prosecutors Over Red Bull Heir Hit-and-Run Case
Thailand Proposes 320 Million Baht Campaign to Boost Chinese Tourism
Thailand Intensifies Crackdown on Substandard Imports and Foreign Ownership Laws
Bank of Thailand Prepares Second Phase of Debt Relief to Support Household Financial Stability
China Warns Nations Against Trade Deals Harmful to Its Interests
Thailand Adapts to U.S. AI Chip Export Controls Amid Domestic Regulatory Advancements
Thailand and EU Advance Free Trade Agreement Discussions
Six Police Officers Killed in Plane Crash Near Hua Hin Airport
Let our wonderful farmers have a good feast and joyful easy life
Specialized anti-drone weapons deployed among security personnel Ahead of Papal Funeral
President Trump and Ukrainian President Zelensky just held an impromptu discussion on the sidelines of Pope Francis' funeral in Rome.
World Leaders Gather in Rome for Pope Francis's Funeral
Foodpanda to Exit Thai Market Amidst Intense Competition
Pope Francis Laid to Rest in Rome as World Leaders Attend Funeral
Myanmar: TikTok astrologer arrested for predicting new earthquake
Virginia Giuffre, Prince Andrew and Jeffrey Epstein accuser, dies by suicide
Thai Students Power Remote Schools with Renewable Energy
"China has survived for five thousand years, most of it without the United States as a market, and it can easily continue to survive without the U.S. market for another five thousand years — no problem," said a China analyst.
Pam Bondi Details Wisconsin Judge’s Actions Before Arrest: 'Can't Make This Up'
Not Child’s Play: How Competitive Gaming Became a Global Economic Empire
California Surpasses Japan to Become the World’s Fourth-Largest Economy
Peter Navarro: The Man Behind Trump’s Tariff Madness
Former U.S. Congressman George Santos sentenced to eighty-seven months for wide-ranging fraud
Thailand and Australia Launch Joint Offensive Against Transnational Crime
Thailand Explores Innovative Train-Through-Building Concept on Red Line
Chinese Automakers Expand Production in Thailand to Boost Exports
Thailand to Implement Economic Stimulus Package Amid Revised GDP Forecast
Thailand Intensifies Crackdown on Foreigners Misusing Student Visas for Illegal Employment
Thailand to Conduct Emergency Alert System Tests via Cell Broadcast
China and Thailand Mark 50 Years of Diplomatic Relations with Cultural Tribute to Thai Princess
Bangkok Introduces Mandatory Microchipping for Pets
Thailand’s Data Centre Services Market Forecast to Grow Eight Percent in 2025
Nestlé Engages in Legal Dispute Over Nescafé Operations in Thailand
Chiang Mai Aims to Secure UNESCO World Heritage Status by 2026
US Tariff Saga Hinders Minimum Wage Hike in Thailand
Woman slaps man at sports game and gets herself and husband beat up
Pope Francis: head of the Catholic church who pushed for social and economic justice
China do not pay these tariffs - you pay it. This is new 145% tax you pay to the US government.
×