As global trade tensions rise, ASEAN faces a challenge: how to benefit from the US and China without picking sides. It is the world's fifth-largest economy, with a combined gross domestic product of more than $3.6 trillion dollars. The Association of Southeast Asian Nations (ASEAN) brings together 11 states, representing nearly 700 million people. As a fast-growing hub for trade, manufacturing and supply chains, ASEAN is a vital partner for both China and the United States.
The 11 member nations collectively export more to the US than China, making them an important trading partner and also highly vulnerable to Trump's tariff regime. The US president secured pledges from Vietnam to dramatically increase its US purchases, and signed deals with Malaysia and Thailand on a framework to diversify critical minerals supply chains. The four countries also pledged to remove trade barriers and provide preferential market access to various US goods.
"Even as they face among the most punitive tariffs globally, US secretary of state Marco Rubio has sought to reassure southeast Asian nations of Washington's commitment to the region."
