Donald Trump's tariff policies, implemented as part of his 'America First' trade strategy, aimed to address trade imbalances and boost US industries, but they have significantly disrupted ASEAN economies.

Historically, US tariffs have aimed at correcting trade imbalances but frequently result in unintended economic consequences, as illustrated by the Smoot-Hawley Tariff Act of 1930.

These tariffs have adversely affected exports from ASEAN nations, deterring investment and straining trade relations between the US and ASEAN.

Overall, the economic repercussions for ASEAN nations include reduced export competitiveness, which undermines their role in global manufacturing.

Lessons from economic history indicate that protectionism often backfires, suggesting that regional collaboration can strengthen resilience against external economic pressures.

Vietnam, which recorded a trade surplus of $123 billion with the US in 2024, is particularly impacted, facing high tariff rates alongside Cambodia and Laos, which are at 49% and 48%, respectively.

As a result of these tariffs, ASEAN's export competitiveness has diminished, especially in key sectors like electronics, textiles, and agriculture, leading to increased costs for American consumers.

The uncertainty surrounding tariffs is also redirecting foreign direct investment (FDI) away from ASEAN countries to less exposed nations such as the Philippines and Malaysia.

In response to these challenges, ASEAN countries are considering various policy measures, including potential retaliatory tariffs, legal challenges through the WTO, and domestic economic reforms to enhance competitiveness.

Pursuing domestic reforms and diversifying trade relationships can help ASEAN nations reduce their dependence on the US and mitigate risks associated with protectionist policies.

Successful regional cooperation and adaptability are essential for ASEAN to navigate the economic challenges posed by US tariffs and maintain stability.

The combination of these factors highlights the complex interplay between US trade policies and the economic landscape of ASEAN.