JAKARTA – DBS Indonesia economist Taimur Baig believes that through its aggressive tariff policies, the US is not only targeting China via import levies but is also pressuring other countries to scale back trade with China.

“The US is basically saying to other countries, 'If you want a deal with us, you have to get tough on China',” said Taimur during a media briefing at the DBS Asian Insights Conference held today (21/5).

Taimur cited the US-UK agreement as an example, which compelled the UK to restrict China’s participation in its supply chains.

The US is expected to apply similar demands to other Asian countries, suggesting that the challenge for these nations is no longer limited to American import tariffs, but also involves distancing themselves from Chinese exports in order to secure favourable terms with the US.

“I think ASEAN countries would find it next to impossible to agree with the US on replicating US tariff on China. ASEAN has always been about mutual beneficial relationships,” Taimur explained.

On the other hand, ASEAN faces a unique internal challenge, he noted, due to the region’s macroeconomic diversity — comprising small and large economies, low- and high-income nations, as well as commodity exporters and importers.

However, in the case of tariffs, Taimur believes ASEAN can find common ground and agree not to follow the US in exerting trade pressure on China.

“With the US, it’s complex, it’s not really straight forward, but in terms of not necessarily doing the US’s bidding against China, I think ASEAN countries can take one common platform,” he said.

According to data from IDNFinancials.com, China recorded a trade surplus with ASEAN of up to USD 190 billion in 2024, while the US posted a trade deficit with ASEAN of USD 227.7 billion. (ZH)