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US-Asean Business Council president Ted Osius told FMT that US investors see the region’s steady economic growth, smart investment incentives, and strong levels of human capital as reasons to not pull out or scale back their commitments.
“Despite potential policy changes in Washington, US companies are continually optimistic about the future of business, investment and trade in the Asean region,” said Osius.
“Southeast Asia will drive global growth for years to come, and the US-Asean economic relationship will be central to shaping that growth.”
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Osius said the 180 companies registered with the Washington-based council announced over US$20 billion worth of investment commitments in Asean’s digital ecosystems last year in key areas such as data centres, cloud hubs and undersea cables.
Asked to assess the broader impact of the Trump administration’s proposed tariffs on Asean member countries’ economies, Osius said they would likely maintain their strong upward trajectory supported by deeper regional economic integration.
He added that several Asean countries, with Vietnam being a notable example, are eager and ready to accept the influx of production and investment that US tariffs on China may herald.
“With US firms relocating to Southeast Asia, Asean exports to the United States have already risen significantly, including exports of semiconductors and electrical components,” he said, noting that the US surpassed China as Asean’s top export market last year.
He also cited research from the Nomura Research Institute which estimated that total exports from Asean countries will likely double by 2030, roughly three times the expected rate of growth in global trade.
On Wednesday, The New York Times reported Trump’s plan to impose a 25% tariff on goods from Canada and Mexico, and a 10% tariff on goods from China, all effective from Feb 1. He has also vowed to impose tariffs on goods from the European Union.
In a recent interview with Turkish public broadcaster TRT World, Prime Minister Anwar Ibrahim said any policy which goes against free trade will affect several regions, including Asean — which Malaysia chairs this year.
While the proposed tariffs have led to uncertainty surrounding trade and growth, Asean largely benefited from the tariffs implemented during Trump’s first administration, which led companies to shift supply chains to the region to avoid higher tariffs on Chinese goods.
A report by the IMF last November stated that although US-China ties have deteriorated in recent years, Asean has adapted and continued to strengthen trade and investment links with both China and the US.
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