ASEAN can capitalize on Trump's tariff tantrum, says business lobby head
"I think there is a lot of upside and we need to work together," Nazir Razak, chairman of the ASEAN Business Advisory Council (ASEAN-BAC), said in an interview on Thursday. "The rules-based open trading system is no longer liked by the majority of the U.S. population ... We have to accept that and do something about it."
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The Mainichi
12 hours ago
- The Mainichi
Trump and Philippine leader plan to talk tariffs and China at the White House
WASHINGTON (AP) -- President Donald Trump plans to host Philippine President Ferdinand Marcos Jr. on Tuesday at the White House, as the two countries are seeking closer security and economic ties in the face of shifting geopolitics in the Indo-Pacific region. Marcos, who met Secretary of State Marco Rubio and Defense Secretary Pete Hegseth on Monday, is set to become the first Southeast Asian leader to hold talks with Trump in his second term. Marcos' three-day visit shows the importance of the alliance between the treaty partners at a time when China is increasingly assertive in the South China Sea, where Manila and Beijing have clashed over the hotly contested Scarborough Shoal. Washington sees Beijing, the world's No. 2 economy, as its biggest competitor, and consecutive presidential administrations have sought to shift U.S. military and economic focus to the Asia-Pacific in a bid to counter China. Trump, like others before him, has been distracted by efforts to broker peace in a range of conflicts, from Ukraine to Gaza. Tariffs also are expected to be on the agenda. Trump has threatened to impose 20% tariffs on Filipino goods on Aug. 1 unless the two sides can strike a deal. "I intend to convey to President Trump and his Cabinet officials that the Philippines is ready to negotiate a bilateral trade deal that will ensure strong, mutually beneficial and future-oriented collaborations that only the United States and the Philippines will be able to take advantage of," Marcos said Sunday when he was departing for Washington, according to his office. Manila is open to offering zero tariffs on some U.S. goods to strike a deal with Trump, finance chief Ralph Recto told local journalists. White House press secretary Karoline Leavitt hinted that a trade agreement with the Philippines was in the works. "Perhaps this will be a topic of discussion," she told reporters Monday when asked about tariff negotiations. The White House said Trump will discuss with Marcos the shared commitment to upholding a free, open, prosperous and secure Indo-Pacific. Before a meeting with Marcos at the Pentagon, Hegseth reiterated America's commitment to "achieving peace through strength" in the region. "Our storied alliance has never been stronger or more essential than it is today, and together we remain committed to the mutual defense treaty," Hegseth said Monday. "And this pact extends to armed attacks on our armed forces, aircraft or public vessels, including our Coast Guard anywhere in the Pacific, including the South China Sea." Marcos, whose country is one of the oldest U.S. treaty allies in the Pacific region, told Hegseth that the assurance to come to each other's mutual defense "continues to be the cornerstone of that relationship, especially when it comes to defense and security cooperation." He said the cooperation has deepened since Hegseth's March visit to Manila, including joint exercises and U.S. support in modernizing the Philippines' armed forces. Marcos thanked the U.S. for support "that we need in the face of the threats that we, our country, is facing." China, the Philippines, Vietnam, Malaysia, Brunei and Taiwan have been involved in long-unresolved territorial conflicts in the South China Sea, a busy shipping passage for global trade. The Chinese coast guard has repeatedly used water cannon to hit Filipino boats in the South China Sea. China accused those vessels of entering the waters illegally or encroaching on its territory. Hegseth told a security forum in Singapore in May that China poses a threat and the U.S. is "reorienting toward deterring aggression by Communist China." During Marcos' meeting Monday with Rubio, the two reaffirmed the alliance "to maintain peace and stability" in the region and discussed closer economic ties, including boosting supply chains, State Department spokesperson Tammy Bruce said. The U.S. has endeavored to keep communication open with Beijing. Rubio and Chinese Foreign Minister Wang Yi met this month on the sidelines of the Association of Southeast Asian Nations regional forum in Kuala Lumpur, Malaysia. They agreed to explore "areas of potential cooperation" and stressed the importance of managing differences.
Nikkei Asia
14 hours ago
- Nikkei Asia
Asia's energy transition hobbled by '80s tech', UK software CEO says
Kraken CEO Amir Orad said Asian countries will not be able to manage the energy transition with outdated technology. (Photo by Shotaro Tani) SHOTARO TANI TOKYO -- Asian countries will be incapable of managing the transition to renewables with existing "1980s era" technology as the energy system becomes more complex, the CEO of a leading UK energy software company has warned. They will be "physically unable to handle the energy transition and take advantage of the new capabilities that it brings" with outdated technology, Amir Orad, CEO of energy tech platform Kraken, told Nikkei Asia.
The Diplomat
21 hours ago
- The Diplomat
The Philippines-US Relationship Is Tested as President Marcos Visits Washington
A shift in the policy mix between economic and security components would be beneficial to U.S. interests and regional stability. Philippine President Ferdinand Marcos Jr. is currently on a three-day visit to Washington D.C., which began with his arrival on July 20. The trip comes during a time of churn in the U.S. relationship with the Philippines, as with other Southeast Asian states. U.S. President Donald Trump's tariff policies have caused much concern in Manila, even as the Philippines, with China on its mind, continues to deepen its security cooperation with United States. A sound, long-term relationship between these two allies will be difficult to maintain unless the alliance gets its security and economic mix right. This week's meetings are critical for the two sides to close their gap. The slew of tariffs unleashed by the Trump administration against its allies and partners did not spare the Philippines. In fact, the initial tariff of 17 percent announced in April was recently raised to 20 percent. Manila is more than concerned, especially as its fellow ASEAN states Indonesia and Vietnam succeeded in lowering their initial tariffs significantly (albeit to similar levels as the Philippines – 19 percent and 20 percent, respectively) in deals with Washington. Meanwhile the Luzon Economic Corridor, a major U.S.-backed project of new investments in connectivity and infrastructure in the Philippines, has made little progress despite being announced more than a year ago. Soon after being elected, Marcos made a major U-turn in Philippine foreign policy, turning away from his predecessor Rodrigo Duterte's antipathy toward the United States. Manila is justifiably mystified as to why it should face the same tariff wrath as its non-aligned ASEAN neighbors, when it has done much more to align with U.S. strategies to counter China. Meanwhile, China's expansive claims in the South China Sea (ruled illegal in 2016 by an international tribunal) and coercive maritime behavior remain a challenge for the alliance. China's intrusive behavior has seen a sharp uptick since late 2023, and has continued essentially unabated this year. Moreover, Marcos himself is politically weaker today than he was a year ago after his fallout with the powerful Duterte dynasty and setbacks in the recent mid-term elections. The return of the Dutertes is a distinct possibility in the 2028 election, with the former president's daughter and current Vice President Sara Duterte, topping early polls. An economic win will help bolster Marcus politically at home and help improve the prospects for a more U.S.-friendly successor in 2028. The Trump administration correctly aims to shift some of the burden of mutual defense to its Asian allies, including the Philippines, to save money and keep direct exposure of U.S. troops at a lower level in the South China Sea. This implies greater defense spending by Manila, but also more U.S. support for Philippine capabilities to counter Chinese gray zone tactics in the South China Sea. Some of this is indeed happening – including help for Philippine base upgrades and projects such as the recently announced boat repair facility in Palawan, located near the flashpoint of Second Thomas Shoal. However, some U.S. actions are escalatory. The most dangerous development is the alliance creep toward the Taiwan theater. New U.S. military sites have mostly been located close to the Bashi Channel that separates the main Philippine island of Luzon from Taiwan, and far from the South China Sea. Washington has also deployed major war-fighting missile systems to Luzon that can strike at targets deep in the Chinese mainland. Countering China's gray zone tactics in the escalatory war-fighting plane, and especially as part of a plan for a Taiwan contingency, is a bad idea. As a recent Quincy Institute Brief argued, defending, not provoking, ought to be the guiding principle for Washington. Dropping the ball on the bilateral economic relationship only makes matters worse. An ideal policy mix would involve strong U.S. support for enhancing Manila's capacities to counter Chinese tactics in the South China Sea, a high degree of caution on any Philippine involvement in a Taiwan conflict, and energizing, rather than damaging, trade and investment ties between the two allies. Thus, the United States should continue to support the Philippines diplomatically and aim to bolster its maritime capacities and maritime domain awareness. It should also actualize economic initiatives such as the Luzon Economic Corridor as soon as possible. A strategy of non-escalatory balancing by mainly strengthening Philippine capacities in all dimensions is far safer than accelerating bloc formation and expanding U.S. military deployments. A focus along these lines in this week's meetings could strengthen the alliance for the long haul. Ultimately the rise of economically capable and autonomous middle powers in Asia is the surest way to both reduce a frontal U.S. military role and achieve a stable and sustainable region. Such a nuanced strategy can help check Beijing's worst tendencies – but also limit risk-taking by Washington and other Asian states. The Philippines-U.S. alliance could be an exemplar of this approach if both allies want it to be so.
