The Economics Show How Asia is coping with Trump’s tariffs. With Mari Pangestu
10 snips
Aug 25, 2025 Mari Pangestu, Indonesia's former trade minister and World Bank managing director, discusses the impact of Trump’s tariffs on Southeast Asia. She explains how these tariffs challenge local economies and push countries closer to China. The conversation also covers the complexities of trade dependencies, strategic responses from nations like Vietnam, and key trade agreements. Additionally, they delve into the evolving nickel market and its implications for global supply chains, emphasizing the need for regional cooperation in this shifting landscape.
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Multiple Motives Behind Tariffs
- Mari Pangestu argues Trump's tariffs aim to reduce the deficit and address perceived unfairness while also wielding geopolitical influence.
- She says tariffs are a negotiating tool and reflect Trump's longstanding preference for protectionism.
Uneven Exposure In Southeast Asia
- Southeast Asian economies vary widely in trade openness and exposure to U.S. demand.
- Mari warns high tariffs could cause large layoffs in labour‑intensive sectors like garments and footwear.
Rules Of Origin Are The New Target
- After Trump 1.0, production shifted from China to third countries like Vietnam and Mexico.
- Trump 2.0 targets rules of origin to prevent such third‑country benefits.
