For Asean economies, whether they will be able to weather this new wave of protectionism remains to be seen. The region faces uneven impacts as the US rolls out tariff notifications with adjusted rates ranging from 20% to 40%.
After a volatile first half of 2025, global financial markets are now entering a fraught and uncertain second half amid tariff negotiations, renewed stagflation risks in the US and mounting pressure on Asia’s export-reliant economies.
While US President Donald Trump’s landmark “One Big Beautiful Bill Act” has averted an immediate US debt default, it has also set the stage for potentially inflationary fiscal stimulation, just as the US prepares to impose reciprocal tariffs on its trading partners on July 9. It expects them to pay up by Aug 1.
