Southeast Asia’s tariff tango

IN FOCUS

In today’s newsletter, we look at:

• Implications of Trump’s Tariffs on Southeast Asian ecommerce

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Hi there,

The trade war between the US and China could have wide-reaching effects on Southeast Asia’s ecommerce space.

While US President Donald Trump’s “liberation day” tariffs have hit many countries, the relatively higher tariffs imposed on China may push it to seek alternative markets for its exports.

Southeast Asia becomes a natural choice. Many Chinese sellers already sell to consumers in the region, facilitated by ecommerce marketplaces like Shopee, Lazada, and TikTok Shop. Those who aren’t already doing so can easily start.

If anything, Chinese President Xi Jinping has forged deeper alliances in Southeast Asia on his recent tour, presenting China as a source of “stability and certainty.”

Should China reroute more of its US-bound goods to Southeast Asia, cross-border ecommerce activity in the region could see an uptick.

While great for platforms and consumers in the short term, I examine the potential implications of this uptick – taking into account how the Indonesian government is reacting – in this week’s Hot Take.

One announcement before I sign off: This will be the last edition of The Checkout as we pause it for the time being to focus our attention on other newsletters.

We hope you’ve enjoyed reading The Checkout as much as we have curating it and giving our fortnightly commentary!

With that, I’ll leave you with some of our latest ecommerce stories. You can continue following our ecommerce coverage here.

• J&T Express CFO reveals how it’s beating logistics rivals
• SEA logistics sees M&A, greentech action amid funding lull
• Telio’s shutdown signals deeper B2B ecommerce woes
• Una Brands confronts slowing growth in 2023 as tariff clouds loom
• Can AI end the discount wars in SEA ecommerce?

Until next time!

THE HOT TAKE