Southeast Asia once more found itself under the worldwide geopolitical highlight attributable to growing tensions between the important power blocks on this planet. The United States, under the administration of Donald Trump, announced a brand new 10 % tariff to BRICS member states – a traffic that may be a serious challenge, including for Indonesia, which confirmed the choice to remain within the block.
If it’s implemented, Indonesian exports to the US can be within the face of a complete tariff of 42 percent-among the ten % basic tariff, a further 10 % specific tariff for BRICS and a 22 % tariff scheduled for August 1.
However, the region of Southeast Asia as an entire decided not to just accept the express side. This position shouldn’t be interpreted as indecision, but quite strategic efforts to take care of political autonomy and protect national interests in an increasingly fragmented world.
BRICS instead, not a competing block
BRICS – now consisting of 20 countries and representing over 55 percent of the worldwide population – is another platform for countries developing to their interests in a world system, which many claims that they aren’t any longer reflecting today’s global dynamics of power. According to the International Monetary Fund (IMF), the BRICS block accounts for nearly 44 percent of the worldwide GDP based on purchasing power parity (PPP).
One of the essential pillars promoted by BRICS is the dollarization agenda. At the summit of BRICS in 2025 in Brazil, President Lula Da Silva called for the creation of a brand new international economic system that doesn’t deal with the American dollar. According to Lula, this dollarization can be a gradual, but key step towards constructing a more balanced and fair system for developing countries.
Key initiatives include strengthening the brand new Bank Development (NDB), extension of local currency financing and developing cross -border payment systems. The Rio de Janeiro declaration also emphasized the importance of different mechanisms, comparable to a reserve agreement (CRA) and latest local investment platforms based on currency in an effort to increase the financial resistance of nations on the worldwide south.
National and mini-lalatalism interests asean
In the context of world tensions and the expansion of BRICS instead block of power, Southeast Asian countries didn’t remain passive. They reacted with strengthening internal and regional cooperation specializing in practical interests.
Southeast Asia is a region with significant economic potential. With a population of roughly 700 million and a collective GDP reaching USD 3.8 trillion in 2024, it’s an economic growth center that can’t be neglected.
However, regional economic integration stays incomplete. Instead of waiting for a consensus in all of ASEAN, countries comparable to Singapore, Malaysia and Vietnam initiated limited and pragmatic types of cooperation-fairly known as mini-lalatalism. This is visible in joint projects, comparable to special economic zones and cross -border renewable energy cooperation.
On the opposite hand, despite the receipt of great investments from China – mounting as much as USD 17.3 billion in 2023, i.e. 7.5 percent of the whole FDI inflows to ASEAN – it stays cautious among the many region.
There is an increasing fear that the dependence on Chinese supply chains may limit their flexibility in maintaining access to US markets, especially amongst Washington’s growing pressure to cut back the depend on Chinese expenditure.
New balance point in global order
Today’s Southeast Asia just isn’t only economic pressure, but a tug of war between the 2 competing worldviews: one rooted in older institutions and unipolar domination, and the opposite was shaped by a coalition of developing nations in favor of a few years of order.
The region just isn’t perceived as a pawn within the competition of great power, but as a strategic actor along with his own interests and visions. The commitment of Indonesia to stay within the BRICS-POMIMO short-term economic risk on the a part of the US-it ends in a long-term approach focused on policy sovereignty and balanced global order.
Southeast Asia doesn’t reject the United States or China; Instead, he claims that his right to make independent decisions. In this context, the label of “third countries” isn’t any longer necessary. The region has turn out to be a brand new center of gravity in global geopolitical and economic matters, and the elections he made today will shape the longer term direction of the world.
Reference:
- https://carnegieendowment.org/research/2025/03/brics-expansion-and-the-future-of-world-ordder -perspectives-from-mmber-staths-states-andaspirants?lang=en
- https://carnegieendowment.org/posts/2025/06/building-bridges-countering-rivals-strengrening-us-asean-ties-to-combat-chineseinflunce?lang=en
- https://chinaglobalsosh.com/analysis/misreging-southeast-asia-us-china-tariff-var/
- https://geopoliticaleconomia.com/2025/07/10/trump-terat-rics-us-dollar-western-imperialism/
https://jakartglobe.id/business/indonesia-will-not-loave-racs-despite-us-tariff-treat
