2025-04-10T22:00:00.000Z

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KUALA LUMPUR: In a significant moment that sent ripples across global markets, United States President Donald Trump delivered his inaugural address on January 20, where he made bold declarations about his intentions to reshape the American trade landscape. Trump announced that he would immediately begin the overhaul of (its) trade system and emphasized his commitment to tariff and tax foreign countries to enrich (its) citizens.

Underlining his aggressive stance, Trump initially targeted America's neighbors, Canada and Mexico, but soon shifted his attention to a much larger adversary: China. Starting with a 10 percent tariff on Chinese imports, his administration quickly escalated its trade war, doubling the tariffs to 20 percent within a month. In response, China swiftly retaliated, asserting that it wont be bullied, a declaration that underscored the tensions brewing between the two economic giants.

As the months progressed, the situation only intensified. By April, the tit-for-tat trade actions had reached a fever pitch, causing stock markets to react with significant volatility. The tariffs imposed by the United States on Chinese imports soared to an astonishing 125 percent, while China's retaliatory tariffs on American goods stood at 84 percent, illustrating the severity and far-reaching implications of this trade conflict.

Interestingly, until recently, Trump's administration had largely overlooked Southeast Asia, a region encompassing 700 million people that preferred to remain out of the spotlight. With a long history of balancing relationships among major powers, Southeast Asian nations had learned to navigate these complexities with caution, often opting to remain in the shadows during conflicts between larger nations. The age-old adage When elephants fight, the grass gets trampled perfectly encapsulated their approach to international diplomacy.

However, the arrival of what Trump dubbed Liberation Day changed everything. This new wave of tariffs did not discriminate; they affected nearly every country in the international arena. Allies such as Australia, the United Kingdom, Japan, South Korea, and the European Union found themselves caught in the crossfire, while foes like China and Syria were equally impacted. Additionally, nations that hold middle power status, including the Association of Southeast Asian Nations (ASEAN), Brazil, Turkey, and South Africa, were not spared. Even the smallest states, such as Lesotho, Madagascar, Nauru, the Falkland Islands, and Norfolk Island, faced the repercussions of these sweeping trade policies.

The fallout from Trumps trade policies prompted a flurry of activity; panic phone calls from leaders, urgent negotiation requests, and strongly worded press statements became the norm. However, amidst all the chaos, a stark reality emerged: this was not just a mere trade dispute; it signaled a fundamental reordering of the global trade system. The implications of this shift are profound, raising questions about the future of international relations and economic cooperation in an increasingly polarized world.