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US-ally trade wars
OpinionAsia Opinion
Andrew Frank
Jacob J. Puthenparambil
Andrew FrankandJacob J. Puthenparambil

Opinion | Why Asian exporters can’t afford a passive approach to US politics

Asian firms and governments must stop viewing tariffs as temporary obstacles and start treating them as recurring stress tests

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New vehicles are parked at Daikoku Pier in Yokohama, south of Tokyo, on April 11. Japanese Prime Minister Shigeru Ishiba on July 23 said US auto tariffs would be cut to 15 per cent from 25 per cent, after the two countries reached a trade deal. Photo: AFP
Andrew FrankandJacob J. Puthenparambil
For all the continued dizzying headlines about global tariffs and strategic pauses, one thing remains true: the United States is deploying trade policy not just as economic leverage but as a tool of diplomacy and power. The August 1 deadline for countries, including several in Asia, to negotiate a trade deal or face steep tariffs is no exception.
Markets throughout Asia – a region home to some of the most export-reliant economies in the world – are in the crosshairs of US President Donald Trump’s “America first” doctrine. The topic was top of mind at the Association of Southeast Asian Nations regional forum in Kuala Lumpur earlier this month.
During the first Trump administration, China faced tariffs that affected a broad range of industries. These continued through the subsequent Biden administration and became embedded in business processes, pricing and distribution. Things are different this time, and the stakes – and the tariffs – are much higher.
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Trump’s constant policy changes related to tariffs offer little relief, and his administration continues to stoke great uncertainty and frustration in global markets and in company boardrooms. For nations whose prosperity depends on steady access to global markets – especially in automobiles, agriculture, manufacturing, textiles and fisheries – tariffs have made conducting business persistently unpredictable.

Notably, Trump’s new slate of tariffs continues to rock the imported automobiles market, with such global powerhouses as Toyota, Honda and Hyundai feeling the sting. The stakes are no longer confined to profit margins or trade balances; they touch on national reputations, political alliances and long-term viability on the global stage.
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Yet too often Asian nations respond as if it’s still business as usual, which it is not. The geopolitical terrain has shifted and will continue to do so under the current administration. Washington is more than just a diplomatic capital; it’s an economic power centre where deals are shaped in the White House, amplified by media echo chambers and driven by electoral calculus. In this environment, silence is a potential vulnerability rather than an expression of neutrality.

02:01

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