ASSESSMENTS

The Geopolitics of Trade: U.S. Tariffs Give Impetus to ASEAN Trade Diversification

Jun 16, 2025 | 21:27 GMT

The Geopolitics of Trade
The Geopolitics of Trade

(RANE, Shutterstock)

While the Association of Southeast Asian Nations (ASEAN) is attempting to use global trade tensions to strengthen economic integration, the bloc's diversity will limit the extent of this effort even as, over time, common concern about export dependencies on the United States will drive ASEAN members to seek alternative trading partners. On May 26-27, Malaysia, as the 2025 ASEAN chair, hosted a series of summits that underscored ASEAN's broad dual-track initiatives to bolster intra-bloc trade and trade diversification. The 46th ASEAN Summit, convened on May 26, brought together leaders from the ten-member bloc and produced a new five-year strategic plan aimed at deepening economic integration among member states, with goals such as further harmonizing trade standards, enhancing financial integration and promoting sustainable economic practices. Leaders also committed to finalizing an upgraded ASEAN Trade in Goods Agreement by October, which aims to further liberalize regional markets and boost intra-ASEAN trade beyond...

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