In his second time period, extra punitive tariffs may pressure firms to relocate whole industrial ecosystems. Southeast Asian nations are well-positioned to current themselves as secure and dependable alternate options in high-tech provide chains.
Thailand’s Commerce Minister Pichai Naripthaphan sees alternative forward, noting, “Trump’s win shall be helpful for Thailand as a result of Republicans are pro-business, and the US-China commerce conflict will proceed and lead to extra investments.”
Nonetheless, realising this chance will not be easy. It requires transferring past low-cost manufacturing to develop extra refined value-added capabilities. On the similar time, the US might 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 vital take a look at within the coming years.
Not like in 2017, China’s developments in rising industries like electrical autos and clear power know-how following the primary commerce conflict 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 stability 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.
