-
Advertisement
US-China trade war
EconomyChina Economy

Why Trump’s 14-nation tariff package puts China on edge and pressures Southeast Asia

Washington’s latest duties target some of Beijing’s most important partners, pressuring Asean and fuelling trade tensions, analysts warn

Reading Time:4 minutes
Why you can trust SCMP
35
US President Donald Trump speaks to reporters before boarding Air Force One at Morristown Municipal Airport in Morristown, New Jersey, on July 6, 2025, en route to Washington. Photo: AFP
Carol Yangin BeijingandLuna Sunin Beijing

When US President Donald Trump signed an executive order on Monday to extend a pause on “reciprocal” tariffs until August 1, it offered little comfort to China.

Instead, Beijing’s policymakers may feel increasingly cornered, as Washington also moved to target 14 countries – many of them China’s close trading partners – with tariffs of up to 40 per cent.

This came despite breakthrough talks in London that laid the groundwork to remove most bilateral export controls – from China’s rare earth restrictions to US aircraft engines and chips.
Advertisement

Analysts said the latest US tariff package was a calculated strategy to isolate China and strengthen Washington’s position in coming trade negotiations, as the 90-day trade truce agreed in May is set to expire in early August.

“Trump’s newly announced tariffs ... are a continuation of this decoupling agenda,” said Xu Weijun, an assistant research fellow at the Institute of Public Policy at South China University of Technology.

Advertisement
“It’s both pressure and division: the message is clear – ‘cooperative’ countries like Vietnam get preferential treatment, while others face high tariffs,” he said.
Advertisement
Select Voice
Select Speed
1.00x