U.S. Trade Relations with ASEAN: Tariffs and Investigations

In April 2025, the Trump administration implemented significant tariffs on Southeast Asian countries, an event referred to as “Liberation Day.” This move prompted immediate reactions across the region, including market declines and disruptions in supply chains. In response, several Southeast Asian nations, including Indonesia, Malaysia, and Cambodia, opted for negotiation rather than retaliation, resulting in Agreements on Reciprocal Trade with the United States. These agreements aimed to reduce tariffs and enhance market access for U.S. exports.

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In February 2026, the U.S. Supreme Court invalidated the Trump administration's broad tariff strategy under the International Emergency Economic Powers Act. Despite this legal setback, experts argue that tariffs were not the primary barrier to U.S. business operations in the Association of Southeast Asian Nations (ASEAN). Instead, non-tariff barriers—such as fluctuating regulations, complex customs procedures, and opaque licensing systems—pose greater challenges for American companies seeking to engage in the region.

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Recently, the U.S. government announced investigations into alleged unfair trade practices involving several ASEAN countries, including Singapore, Indonesia, Malaysia, Cambodia, Thailand, and Vietnam. These probes could potentially lead to new tariffs based on accusations of forced labor and trade surpluses. U.S. Trade Representative Jamieson Greer emphasized the administration's commitment to protecting American manufacturing jobs and reshoring critical supply chains, stating, “The US will no longer sacrifice its industrial base to other countries that may be exporting their problems with excess capacity and production to us.”

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The investigations have raised concerns among ASEAN nations, which may feel alienated by the U.S. approach. Kevin Chen, an associate research fellow at the S. Rajaratnam School of International Studies, noted that Trump's continued focus on tariffs reflects a desire to maintain them as a central element of U.S. trade relations with the region, despite the Supreme Court ruling. This stance could further complicate diplomatic and economic ties between the U.S. and its Southeast Asian partners.

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While the U.S. government has framed its investigations as necessary for protecting domestic industries, critics argue that such actions may undermine trust and cooperation with ASEAN countries. The potential for new tariffs and the ongoing scrutiny of trade practices could lead to increased tensions, although the exact impact on future trade agreements remains uncertain.

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• “The US will no longer sacrifice its industrial base to other countries that may be exporting their problems with excess capacity and production to us.” — Jamieson Greer, U.S. Trade Representative

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• “Rajaratnam School of International Studies (RSIS), said Trump’s defiance of the Supreme Court ruling indicated his side still wanted to make tariffs “the cornerstone of America’s trading relationship with the region”.” — Kevin Chen, Associate Research Fellow, S. Rajaratnam School of International Studies

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