A weaker and more protectionist US economy will mean less export demand for the region
US President Donald Trump’s brief appearance at the Asean Summit on Oct 26 dominated the headlines. Despite being the prime minister of the rising power in the region, China’s Li Qiang did not command quite the same attention, attesting to the continued importance of the US to the region. Even with the trade war that Trump launched against the rest of the world and in the face of his administration’s controversial foreign policy actions, the assembled Asean heads of government chose to humour him. One even proposed nominating him for the Nobel Peace Prize.
The US will indeed be highly consequential for the region over the coming year as the fallout from Trump’s many policy moves washes over the region. But the outcome may not be positive. As the US is likely to pose considerable downside risks to the region’s economies, financial markets, and geopolitical positioning, the region needs to develop strategies to address the challenges that will grow.
