Cogito Ergo Non Serviam
Trump Tariffs Drive Asian Partners to China
The Trump administration has decided to put tariffs on just about everything coming into the country. The argument they make for doing so is that the countries with which the US trades have been taking advantage of the US, and that needs redress. The tariffs are designed to push the other parties to the negotiating table where beautiful deals will be made to usher in a golden age. The main flaw in this argument is that the other parties are finding other trading opportunities and cutting the US out of the action. China is the main beneficiary of this change in the Asian region.
The Trump administration seems stuck in a world view that died with JFK. In their minds, other countries cannot do without the US market of 330 million consumers with money to spend. Sadly, this is not the case. There are just as many Chinese with middle-class levels of money to spend. There are probably about the same number of Indians in that income bracket. Europe has more people. While important to many firms, the US is not the indispensable market the White House believes.
Reuters reported on March 30, three days before "Liberation Day" (when Mr. Trump liberated America from a wealthy and peaceful future):
South Korea, China and Japan held their first economic dialogue in five years on Sunday, seeking to facilitate regional trade as the three Asian export powers brace from U.S. President Donald Trump's tariffs.
The countries' three trade ministers agreed to "closely cooperate for a comprehensive and high-level" talks on a South Korea-Japan-China free trade agreement deal to promote "regional and global trade", according to a statement released after the meeting.
There has been some disagreement in the press about whether they will co-ordinate their responses to the tariffs. Reuters also said that China has claimed the three are working on such a plan. South Korea says there is less to it than meets the eye. Japan has maintained they really have not discussed the matter. Be that as it may, the three are going to integrate with economies more closely and sooner than would otherwise be the case.
Meanwhile, Chinese President Xi visited Hanoi, capitol of a nation facing 46% tariffs levied by Mr. Trump. Vietnam has some common interests with the US, despite the unpleasantness of its relations with the US back in the 1960s and 70s. Indeed, keeping China in check (the Chinese did attack Vietnam in 1979) is in the interests of both.
France24 reported
China and Vietnam signed dozens of cooperation agreements Monday after President Xi Jinping called for stronger ties on trade and supply chains between the two Communist-run nations on a visit to Hanoi. Xi's Asia trip includes visits to Malaysia and Cambodia as Beijing seeks to reinforce regional ties amid a trade war unleashed by his US counterpart Donald Trump.
Cambodia is already a close ally of China, and Malaysia is open to President Xi's overtures. France24 also stated, “Malaysian Communications Minister Fahmi Fadzil said Xi's visit was "part of the government's efforts . . . to see better trade relations with various countries including China".
Mr. Trump may get something out of all of this. Vietnam may agree to lower tariffs on US goods, perhaps. South Korea and Japan may build auto plants in the US. But President Xi will return to China in a few days with agreements signed and ready to implement.
The first round clearly goes to President Xi.
© Copyright 2025 by The Kensington Review, Jeff Myhre, PhD, Editor. No part of this publication may be reproduced without written consent. Produced using Ubuntu Linux.
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