The Return of the Trump Tariffs: How Will Southeast Asian Firms Respond?

The reintroduction of US tariffs is creating greater uncertainty for Southeast Asian exporters, with recent measures potentially broadening both tariff coverage and legal authority. In the short term, firms are likely to pass higher tariff costs through to US consumers and producers or absorb them through reduced margins. Over the longer term, multinational corporations may continue adjusting supply chains, although tighter scrutiny of transhipment could affect investment relocation into Southeast Asia. Regional economies are also strengthening trade diversification through intra-regional cooperation and agreements with partners beyond the US, including RCEP and new CEPAs.

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