The United States is increasingly turning its back on Chinese goods, leaving Southeast Asia vulnerable to both import competition from China and American trade restrictions. The imposition of sky-high tariffs by Donald Trump’s administration is not a ban on trade with China but will likely result in a significant decline in business between the two countries.
Firms are expected to find new routes for their exports, making it difficult to estimate the exact extent of the downturn. However, one thing is certain – a sharp drop in trade is assured.
As the US dollar falters, European policymakers see an opportunity to strengthen their economy. The weakening greenback can be beneficial for poor countries, but this also poses challenges as they navigate a global market where other currencies are more dominant.
The Trump administration’s approach to trade may seem like short-term pain with long-term gain, but the reality is that it will lead to a country with outdated infrastructure, such as shabbier roads and older airports, and factories that lack the latest technology.
Source: https://www.economist.com/finance-and-economics/2025/04/16/america-is-turning-away-chinas-goods-where-will-they-go-instead