Governments and businesses across East and Southeast Asia are navigating a complex landscape of uncertainty following the unexpected delay in US tariff hikes. The postponement, intended to ease immediate trade pressures, has instead led to a cautious recalibration of economic strategies. While some industries welcome the reprieve, many are apprehensive about the unpredictability of US trade policy, which complicates long-term planning. Companies are now assessing supply chain vulnerabilities and exploring diversification options to mitigate potential risks should tariffs be reinstated later.

Regional responses have taken various forms:

  • Export-dependent economies like Vietnam and South Korea are intensifying efforts to stabilize trade relationships beyond the US market.
  • Manufacturing…