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Facing a flood of Chinese goods and Trump’s tariffs, what can Asean do?
Asean will be dragged into the escalating US-China trade war and its members should respond collectively.
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Asean finds itself squeezed in the trade and technology war between the US and China.
PHOTO: ST FILE
Mari Pangestu and Shiro Armstrong
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South-east Asia is about to be hit by a tsunami of cheap Chinese goods flooding its markets. These goods will be diverted to the region as they will be unable to enter the United States if President Donald Trump 2.0 follows through on his promise of imposing 60 per cent tariffs
Compounding the challenge will be the US tariffs that South-east Asian goods will already have to face as part of Trump’s blanket 10 to 20 per cent tariffs on all imports. The only certainty in an increasingly uncertain world is Trump’s love of tariffs. Given this outlook, a collective response from Asean will be better than countries looking to do individual deals. The grouping should also look to leverage agreements like the Regional Comprehensive Economic Partnership (RCEP).
