S2E8: How Asean is bracing for Donald Trump’s tariff tactics

  • 22 Nov 2024

While there is concern over trade policy, US investors remain bullish on business with Asean.  

Synopsis: The Straits Times' global contributor Nirmal Ghosh shines a light on Asian perspectives of global and Asian issues with expert guests.

With President-elect Donald Trump intent on using tariffs as a weapon - with the larger strategy of rejuvenating American manufacturing - there is concern that the US could retaliate against countries that have a big trade surplus with the United States.

Within the 10-nation Asean bloc, Vietnam, Malaysia, and Thailand could become targets. 

But Asean's growth and competitiveness remains attractive regardless. From 2022 to 2023, for example, foreign direct investment (FDI) declined in all regions of Asia except Asean. More broadly, intra-regional trade in Asia is expected to rise by 65% to US$400 billion (S$535 billion) a year by 2030, which is a good sign for US and Asean investors.

Growth opportunities include artificial intelligence, semiconductor production, digital commerce, medical devices, and mineral supply chains - and Asean countries are competing for investment. 

In this episode, Ted Osius, a former US Ambassador to Vietnam and currently President and CEO of the US-Asean Business Council in Washington DC, shares with host Nirmal Ghosh, the business council’s concerns and wish list, and also why he thinks that, regardless of US government policy, investors are bullish on South-east Asia. 

Highlights (click/tap above): 

4:10 The wish for a forward-looking US trade agenda remains as this region moves forward

7:23 From 2022 to 2023, FDI declined in all regions of Asia, except Asean

10:05 Which Asean countries are making real efforts to attract FDI?

12:48 Growth opportunities for US and Asean investors

13:30 Singapore a leading force in Asean, driving the digital economy framework

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Host: Nirmal Ghosh (nirmal@sph.com.sg)

Produced and edited by: Fa’izah Sani

Executive producer: Ernest Luis

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