ASEAN Tensions Escalate US-Indonesia Trade Dispute Amid Tariffs and Supply Chain Shifts

Published on 4.28.25

  The recent imposition of tariffs by US President Donald Trump has sparked concerns about food trade, domestic production, and the livelihoods of millions of smallholder farmers in Asean member states. The uncertainty caused by these tariffs has led to a shift towards diversifying supply sources and reducing dependency on the US. Asean countries are exploring opportunities for intra-bloc trade, with Indonesia and Malaysia looking to strengthen ties with other regional partners. For instance, Indonesia is in talks with India to increase trade cooperation, while Malaysia is seeking to boost its exports to China. The 90-day delay in implementing further tariffs has provided temporary relief, but uncertainty remains high. The trade war is expected to lead to price increases and shortages affecting all consumers, particularly smallholder farmers who rely heavily on exports. Asean member states are navigating the complex dynamics of international relations, where countries must balance competing interests and priorities to achieve their economic goals. As trade tensions continue to escalate, it remains to be seen how Asean member states will respond and whether they can capitalize on opportunities for intra-bloc trade.

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