Economic coercion risk in ASEAN’s growing China dependence

The geoeconomic shock from the United States’ “Liberation Day” tariffs has pushed members of ASEAN closer to China’s economic orbit. While deeper economic integration helps mitigate the growing uncertainty of international trade, it also makes ASEAN an increasingly vulnerable target for Beijing’s economic coercion.

Countries in the region must actively maintain open and diversified economic partnerships, while improving their management of diplomatic crises to mitigate the weaponization of their economic dependence.

Southeast Asia remains among the regions hardest hit by US tariffs. Despite concessions during negotiations, the latest agreements on reciprocal tariffs that US President Donald Trump signed with Malaysia and Cambodia on October 26 failed to reduce the 19% tariff rate imposed on both countries.

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