In his second time period, extra punitive tariffs might power corporations to relocate total industrial ecosystems. Southeast Asian nations are well-positioned to current themselves as secure and dependable options in high-tech provide chains.
Thailand’s Commerce Minister Pichai Naripthaphan sees alternative forward, noting, “Trump’s win might be useful for Thailand as a result of Republicans are pro-business, and the US-China commerce struggle will proceed and end in extra investments.”
Nevertheless, realising this chance will not be simple. It requires shifting past low-cost manufacturing to develop extra subtle value-added capabilities. On the identical time, the US could strain ASEAN nations or take direct steps to restrict Chinese language content material in strategic sectors.
A CRITICAL TEST FOR ASEAN
Southeast Asia faces a essential take a look at within the coming years.
Not like in 2017, China’s developments in rising industries like electrical autos and clear vitality know-how following the primary commerce struggle current a brand new problem for ASEAN. China’s value benefits and dominance in these sectors makes the significant diversification of provide chains tougher, forcing ASEAN to steadiness strategic considerations with industrial growth priorities.
Balancing the pressures of Trump’s commerce insurance policies with relationships with each the US and China would require flexibility, foresight and cooperation.