Photo:GETTY IMAGES
Time Ukraine Israel, 6 April 2025
While the global economy is reeling from new trade barriers imposed by the Donald Trump administration, three Asian economic powers – India, Indonesia and Taiwan – are demonstrating a balanced alternative. Instead of mirror tariffs and confrontation, they are relying on diplomacy, concessions and investment, seeking not only to avoid a customs war with the US but also to strengthen their positions on the global stage.
Indonesia: a strategy for stability
Southeast Asia’s largest economy is facing 32% US tariffs, but the government in Jakarta has chosen to be restrained. Minister of Economy Airlangga Hartarto emphasised: “This is a strategic decision that takes into account national interests and long-term stability.” Instead of escalating, Indonesia is preparing talks with businesses and considering reorienting exports to European markets. In 2024, the country had a trade surplus with the US of $16.8 billion, with electronics, textiles, and footwear being the key products. The rejection of the customs confrontation is an attempt to maintain attractiveness for investors and avoid economic shocks.
India: the art of negotiation
India, which received a 26% tariff on its goods, is also avoiding conflict. Narendra Modi’s government is ready for compromises: lowering tariffs on American Harley-Davidson motorcycles, bourbon, and cancelling the digital tax that irritated US IT giants such as Google and Amazon. According to New Delhi, India is opening up access to its $23 billion market, demonstrating flexibility. “We are in a better bargaining position than China or Vietnam,” the government is convinced. This approach reflects India’s desire not only to maintain economic ties with the United States but also to strengthen them in its confrontation with China.
Taiwan: investment as a response
Despite 32% tariffs, Taiwan has chosen the path of integration rather than isolation. President Lai Tsing-de is in favour of the complete elimination of duties in trade with the US, offering instead to deepen cooperation. Taiwan’s key bargaining chip is the $100 billion investment by TSMC, the world leader in microchip manufacturing, in the US economy. “Instead of tariffs, we are strengthening investment and industrial cooperation with the United States,” Lai said. Additional emphasis is placed on purchases of American agricultural products and military equipment, which strengthens the strategic alliance between Taipei and Washington.
An alternative model in times of uncertainty
While China and the EU are responding to Trump’s 34% tariffs with mirror measures, India, Indonesia and Taiwan are choosing a different path. Their strategy is reminiscent of the words of philosopher Lao Tzu from the Tao Te Ching: “He who knows how to yield wins without fighting.” In 2025, these countries may not only avoid economic losses but also rewrite the rules of global trade, proving that dialogue and cooperation can withstand the chaos of tariff wars.
For an intelligent society, this is an example of how pragmatism and foresight can be a response to the challenges of globalisation. Will their approach become the new standard? Time will tell.
Author: Marianna Nyzhnia
