In his second time period, extra punitive tariffs might drive corporations to relocate total industrial ecosystems. Southeast Asian nations are effectively positioned to current themselves as secure and dependable alternate options in high-tech provide chains.
Thai Trade Minister Pichai Naripthaphan sees alternatives forward, stressing: “Trump’s victory shall be helpful for Thailand as a result of Republicans are pro-business, and the US-China commerce battle will proceed and lead to extra funding.”
However, realizing this chance won’t be simple. There is a necessity to maneuver past low-cost manufacturing to develop extra subtle value-added capabilities. At the identical time, the United States might exert stress on ASEAN nations or take direct measures to restrict Chinese content material in strategic sectors.
A CRITICAL TEST FOR ASEAN
Southeast Asia will face a vital take a look at within the coming years.
Unlike 2017, China’s progress in rising sectors akin to electrical automobiles and clear vitality applied sciences for the reason that first commerce battle represents a brand new problem for ASEAN. China’s price benefits and dominance in these sectors make significant diversification of provide chains harder, forcing ASEAN to stability strategic considerations with industrial improvement priorities.
Balancing the pressures of Trump’s commerce insurance policies with relationships with each the United States and China would require flexibility, foresight and cooperation.
