In times of geopolitical uncertainty, regional unity is the surest path forward. In July, the ASEAN+3 Macroeconomic Research Office (AMRO) released its updated outlook for the ten members of the Association of Southeast Asian Nations, plus China, Japan, and South Korea. AMRO revised down its growth forecasts for 2025 and 2026 to 3.8% and 3.6%, respectively, and highlighted the urgent need for greater regional integration.

Donald Trump prefers to treat the waters as a bargaining chip, so the United States may reduce high-profile provocations — such as close-in reconnaissance — and instead increase its “gray” tactics and low-intensity military exercises.

As Philippine President Marcos Jr. embarks on a crucial trip to Washington, uncertainties triggered by U.S. tariffs are unsettling global markets and the trade war with China is squeezing third countries, including many in ASEAN. Lowering tariffs, pursuing investment pledges, and boosting cooperation in sectors such as shipbuilding, semiconductors, and critical minerals are key to rebutting claims that the relation is more arms than butter.

U.S. President Donald Trump’s tariffs – especially the ultra-high “reciprocal tariffs” that he says will be reintroduced on July 8 for any country that has not struck a trade deal with his administration – have sent countries around the world scrambling to respond, adapt, and limit the fallout. ASEAN’s ten members – Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam – have been among the most proactive.

In the week of 25th May 2025, Kuala Lumpur played host to a landmark event: the inaugural ASEAN-GCC-China Summit. It brought together Southeast Asian nations, the Gulf states, and China - three pillars of the emerging multipolar order - in a signal moment of strategic realignment. While headlines may focus on trade, energy, and infrastructure cooperation, the deeper story lies in a quiet revolution in how the world’s fastest-growing economies trade, settle, and invest - increasingly without the U.S. dollar.

The tariffs will not spell the end of alliances between the United States and Japan or South Korea, but they are likely to promote a strategic awakening in both countries and accelerate the integration process in East Asia.

ASEAN and BRICS are both international cooperative organizations, much like the G7 - except both are led by non-Western aligned nations. The addition of Indonesia, Malaysia, Thailand and Vietnam to BRICS raises the question of whether these groups can harmonize their goals without disrupting ASEAN's long-standing geopolitical orientation.

The Regional Comprehensive Economic Partnership (RCEP), the world’s largest trade pact, integrates 15 diverse economies to revitalize globalization, enhance trade rules, and bolster ASEAN’s centrality in regional trade. Amid U.S.-China tensions, RCEP offers opportunities for supply chain shifts and industrial upgrades while positioning China to deepen ties with developing regions through initiatives like the Belt and Road.

America is holding ASEAN countries back from a central role in its Indo-Pacific Strategy, but their self-confidence is growing. It’s not lost on anyone that Southeast Asia’s strategic position has not changed in the minds of U.S. decision-makers. Meanwhile, China offers welcome alternatives.

ASEAN’s future seems bright, and both the U.S. and China want to court the region’s nations into partnerships. Neither side holds a clear advantage, though that may change after the U.S. election this year.