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.

Be careful what you wish for, lest it come true. That ancient proverb comes to mind when considering the eagerness of America’s trade partners around the world to negotiate deals with US President Donald Trump’s administration. Four countries already have, with Indonesia the latest to do so – and possibly the first to regret it.

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.

After reaching a consensus in their tariff negotiations in Geneva, China and the United States have significantly reduced their duties on each other. This has awakened countries around the world and inspired them to launch a new wave of regional integration.

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 Trump administration's clash with Ukraine has raised doubts about America's strategic reliability, prompting concerns among European and Asian allies about a potential shift in global order under a second Trump presidency.

Peter Hegseth’s inability to name an ASEAN country underscores the Trump administration’s broader indifference to Southeast Asia, favoring trade protectionism, military burden-shifting, and transactional diplomacy over sustained regional engagement.

The Asia-Pacific region began to exhibit signs of easing major geopolitical tensions in late 2024, but has started to heat up again following President Trump’s return to power in the White House. During the ‘easing’ period, although low-level disputes persisted in the vast region, in the South China Sea, and in cross-strait relations, the risk of a conflict involving regional heavyweights was not imminent.

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.