Categories: Business News

Asian Nations Seek New Trade Partners Amid Trump Tariff Threats

SEOUL – US President Donald Trump’s recent letters threatening steep tariffs have rattled countries reliant on American markets, forcing them to accelerate efforts to diversify trade partners.

“Across the world, tools once used to generate growth are now wielded to pressure, isolate and contain,” Malaysian Prime Minister Anwar Ibrahim said on July 9, urging ASEAN nations to invest more in one another as a buffer against US protectionism.

South Korea’s new president, Lee Jae Myung, is dispatching envoys to Australia and Germany to discuss trade and defence, while Brazil and India plan to boost bilateral trade by 70% to US$20 billion. Indonesia is close to finalising a treaty with the EU that would eliminate most tariffs.

Vietnam, which faces a 20% tariff on exports to the US, is also working to reduce reliance on American consumers by leveraging existing agreements. “As more and more countries are feeling that it’s more difficult to satisfy US demands, then their interest in working with others is going to intensify,” noted Ms Wendy Cutler of the Asia Society Policy Institute.

Economists say this is reminiscent of China’s previous moves. When the US imposed tariffs on Chinese goods during Trump’s first term, China shifted its soybean purchases to Brazil, leaving US farmers with unsold stock.

South Korea’s former trade negotiator, Mr Byung-il Choi, warned that Trump’s stance could push Seoul towards joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). “Japan and Korea believed that we are a staunch, ironclad ally of the US, but Donald Trump doesn’t believe in allies,” he said, adding that South Korea’s incoming government is prioritising national interest above all.

While Asian countries have been diversifying for years, these fresh threats are accelerating the search for alternative markets to minimise vulnerability to US economic coercion.