The major changes in US policies under the Trump administration have significantly impacted Asia. The trade is being reshaped due to Trump’s imposition of tariffs on Chinese goods and halting foreign aid. Due to trade restrictions from both nations, China and the US, Northeast Asian economies that depend on exports may suffer. Many other countries such as Japan, South Korea, and Taiwan face complexities because China always remains central to their trade networks. US tariff policies may weaken their alignment with Washington. Because these trade policies are against China’s interests and could damage their local businesses.
The economy of Southeast Asian exports may suffer the border implications of a trade war. On the other hand, India is making efforts to maintain strong relationships with the US in different sectors such as defense, technology, and energy, along with maintaining partnerships with other important allies. The US-China trade competition under the Trump administration will dominate geopolitics in North Asia. At the same time, Japan and Taiwan stood in favor of the US and strongly opposed China, although South Korea remained uncertain in its stance due to domestic political shifts.
A potential Democratic Party-led government in Seoul could lean toward Beijing but may support US diplomatic engagement with North Korea.
Several Southeast Asian countries like Vietnam, Malaysia, and Thailand are taking advantage of the US-China trade war. To prevent US tariffs, companies move production from China to these nations, growing their exports to the United States. To strengthen its trade with the US, Indonesia is now trying to attract similar investments by projecting itself as a production hub for products headed for the US. This shift can increase Indonesia’s reliance on Chinese imports, especially in the mining and electronics industries.
Although, the Philippines faces many complexities in this trade war. This is due to its small export sector and fear of being ignored in worldwide trade negotiations. Vietnam has gained the most of the benefits. It is increasing its exports of textiles, machinery, and plastics to the US. It is important to know that all of these gains are short-term and that the South Asian economy remains vulnerable to global trade slowdowns. Furthermore, their economic growth was damaged significantly due to this prolonged trade war.
Australia and the US have adopted the strategy of de-risking and making their dependence less on China for business. Currently, energy, natural resources, and defense industries are the central focus of these nations. And the AUKUS is assisting to achieve this goal.
There is one of the major complexities. The long-term US-China trade war could damage the Australian economy. This is because China is one of the biggest trade partners of Australia.
Even though Australian officials are also worried about Trump’s new policies but still both the US and Australia have a good partnership.
Trump stopped giving money through USAID to Myanmar. This is very harmful to Myanmar. It affects programs that help displaced people and aid organizations fighting against the military dictatorship. These organizations will have to find new ways of getting money and support.
India’s efforts to strengthen its partnership with the US
India is making efforts to strengthen its partnership with the United States under the Trump administration. Indian Prime Minister, Modi’s recent visit to the US highlights that India values the US interest and considers it the most important global partner. India plans to promote itself as a central hub for manufacturing and investment. However, trade issues between the US with different nations such as China, Mexico, and Canada may cause friction.
The US, having a trade deficit of $45 billion with India, might see heightened tariffs on Indian imports due to Trump’s efforts to achieve a trade balance. To alleviate tensions, India has already lowered certain tariffs and may raise imports of gas and defense equipment from the US.
Trump’s strategy will probably place less emphasis on India’s foreign policy choices or human rights issues, including its neutral stance regarding the Russia-Ukraine conflict. Nevertheless, India will exercise caution regarding total alignment with the US and will keep nurturing its relationships with other international allies.
