Iran and 301 – Incoming Shocks for Southeast Asia

Since the start of March, Southeast Asian economies have been met with bad news from outside the region. For one, the US war on Iran has created economic ripple effects that reverberated beyond the Middle East. Then, on March 11, the US Trade Representative’s office opened not one, but two Section 301 investigations into countries allegedly abusing excess industrial capacity and forced labour to the detriment of American firms. These investigations will take months to process. Nonetheless, they point to a new phase of US President Donald Trump’s efforts to use tariffs as tools of leverage. What can we expect in terms of broader economic turbulence as a result of these challenges? Should the war continue for weeks, if not months, how serious could the economic consequences become? What should we expect from the Section 301 investigations, and how are governments responding?

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