China Courts Southeast Asia With ‘Peace, Cooperation’ As Trump’s Tariff Hammer Slams Region

Chinese Foreign Minister Wang Yi urged Southeast Asian nations to uphold “peace, cooperation, openness and inclusiveness” at a meeting with ASEAN counterparts in Kuala Lumpur on Thursday, as the region faces sweeping new U.S. tariffs under President Donald Trump.

Speaking at the ASEAN Foreign Ministers’ summit, Wang positioned China as a partner in safeguarding regional stability and growth, Bloomberg reported. 

He said China and ASEAN should “strengthen the revitalization of Asia amid the historical trend that the Global South is showing a remarkable growth.”

His remarks come amid escalating U.S. trade actions. 

Beginning August 1, the U.S. will impose 25% tariffs on goods from Malaysia, while duties on exports from Laos and Myanmar could rise to 40%. 

Cambodia and Thailand face new tariffs of 36%, and Indonesia 32%, as the Trump administration expands its protectionist push.

Trump also announced a 20% tariff on all goods imported from the Philippines, adding to similar actions already rolled out against Brunei, Moldova, Algeria, Iraq, Libya, and Sri Lanka. 

He warned that retaliation from any country will be met with reciprocal tariffs. Goods rerouted through third countries to evade duties will also be penalized under the highest applicable rate.

U.S. Secretary of State Marco Rubio is also attending the ASEAN meetings, though it remains unclear whether he and Wang will hold direct talks. A meeting could pave the way for broader diplomatic engagement, including a potential Trump–Xi summit later this year.

On Stocktwits, retail sentiment for the iShares China Large-Cap ETF (FXI) was tagged as ‘bullish’ with ‘high’ message volume, while sentiment for the SPDR S&P 500 ETF (SPY) was ‘bearish’ amid ‘normal’ activity.

FXI is up 21% year-to-date, compared to a 6.7% gain for SPY.

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