Firstly, regional leaders engaged constructively with the US, which helped them gain various concessions. These included selected sectoral exemptions, better bilateral market access, and lower non-tariff barriers in areas like investment, digital trade, and services, among others. The Asean summit in late-October 2025 saw the US ink two separate deals with Malaysia and Thailand to cooperate on diversifying and investing in their critical minerals supply chains, in addition to signing reciprocal trade agreements with four Asean countries.
Supply-chain shifts triggered by evolving US tariff regimes shaped the Asean-6 landscape in 2025. As production networks realign and investment deepens, 2026 will emerge as a defining year for translating trade disruption into a strategic advantage.
While the dominant view around mid-2025 was that the tariffs would adversely affect the region, the bloc showcased relative resiliency in the face of adversity. Three factors aided this process.
