In today’s interconnected world, countries constantly engage in trade and exchange of goods and services. This interdependence means that changes in trade policies by a single country—especially a global power—can have wide-reaching effects on the global economy.
Recent trade and foreign policy shifts by the Trump administration in the U.S., including adjustments in tariff rates, have raised concerns over their potential impact on global markets and various industries.
While Southeast Asia is not immune to the effects of a global economic slowdown, Cushman & Wakefield Head of Research for Southeast Asia and Singapore, Xian Yang Wong, emphasized that long-term tailwinds are supporting the region’s sustained growth.
“These tariffs will affect exports, especially for economies heavily reliant on them. But when it comes to local economies, real estate assets should remain resilient,” Wong said in a recent
media briefing.
Trade Policy Shifts and Global Ripples
“Clearly, a lot has been happening in the U.S. President Trump has been extremely active since taking office on January 20, much of it through executive orders,” said Dr. Dominic Brown, Cushman & Wakefield’s Head of International Research, during the same briefing.
“While these moves have various implications domestically, from an Asia-Pacific standpoint, we need to view them through two lenses: trade tariffs and foreign policy—which have been making headlines since April 2—and their impact on the trajectory of the U.S. economy,” he explained.
Brown noted several trade and foreign policy measures implemented by the Trump administration, including:
• A proposed 10% tariff on all imported goods, with up to 60% on imports from China,
• The Trump Reciprocal Trade Act, which adjusts U.S. tariffs to match those imposed by other countries,
• And invoking the review period for the United States-Mexico-Canada Agreement (USMCA), set for July 2026.
“These policy shifts are generating a great deal of uncertainty,” Brown added. “And the longer uncertainty persists, the more it undermines market confidence.”
“At the moment, we’re seeing peak uncertainty, especially around tariffs, as various pressure points build in the U.S.,” he said.
Brown explained that as trade negotiations progress and deals are finalized, tariff levels are expected to decline.
“We’re currently looking at an average tariff rate of about 17.5%—that’s 10% globally, 30% on China, 25% on steel and aluminum. Once averaged out, it lands around 17.5%,” he said.
“We anticipate that in the second half of this year and into 2026, deals will be struck that will bring those tariffs back down to levels seen before Trump took office.”
Southeast Asia’s Enduring Strength
Despite market uncertainties, Wong stressed the importance of viewing Southeast Asia’s real estate market through a long-term lens.
“Tariffs can be switched on and off quite quickly. That’s why it’s crucial to take a long-term perspective,” he said. “Southeast Asia may not be immune to global slowdowns, but the region has shown remarkable resilience over the past year.”
Wong highlighted that Southeast Asia remains one of the fastest-growing regions globally and is projected to become the world’s fourth-largest economy by 2030.
“Economic growth across Southeast Asia continued in 2023 and 2024, even amid higher interest rates and inflation,” he said.
He cited several key factors underpinning this long-term optimism: a growing middle class, continued urbanization, increased infrastructure spending, rising exports, and regional resilience in a multipolar world.
“With uncertainty likely to continue, we expect supply chain diversification trends to accelerate—potentially driving more investment into the region,” Wong added.
Positive Tailwinds for SEA Real Estate
Wong pointed to several tailwinds supporting long-term real estate growth in Southeast Asia, including the booming data center sector, which remains significantly underserved.
“We expect continued interest in sectors like data centers, especially with the momentum behind digitalization,” he said.
Another promising trend is the growth of manufacturing and logistics assets in the region.
“We’ve seen significant investment in recent years in anticipation of Southeast Asia’s rise as a manufacturing and export hub. This has boosted liquidity for industrial assets,” Wong explained.
He also noted that the region’s digital economy is forecast to reach $1 trillion by 2030—four times its current value.
“With increased manufacturing and export activity, and robust intra-regional trade within APAC, there’s also a healthy pipeline of industrial stock being developed to meet rising demand,” he said.
Additionally, Wong pointed to other positive trends shaping the region’s real estate market: the recovery of prime retail rents, the easing of oversupply in the office sector, and growing investor interest in hospitality properties driven by wellness-focused travel.
