The influx of significant investments and products into Southeast Asia may attract the attention of local governments, leading to stricter regulatory policies aimed at protecting domestic businesses. For instance, Indonesia has recently launched a 100-day rigorous inspection of ports and warehouses, while Thailand plans to implement quality control measures on foreign e-commerce products within 30 days and ensure proper tax collection.

To comply with these stricter standards and regulations, sellers must enhance their awareness of compliance, or they risk incurring substantial losses. During Indonesia’s 100-day inspection plan, 152,744 unlicensed branded cosmetics were seized from an online store’s warehouse, with a total value exceeding 22 billion rupiah! The Philippines Bureau of Customs recently intercepted 21 containers of smuggled frozen mackerel from China at the Manila International Container Port (MICP), with an estimated total value of 178.5 million pesos. The recipient could also face legal charges related to these violations.

Another factor to watch is exchange rate fluctuations. Trump advocates for policies to intervene in the U.S. dollar’s exchange rate to devalue it, thereby boosting domestic manufacturing and reducing the trade deficit.

However, this could lead to a rebound in inflation due to rapid interest rate cuts. Some Southeast Asian countries may attempt to intervene in the foreign exchange market to stabilize or devalue their currencies to enhance export competitiveness.

As a result, Southeast Asian sellers face certain exchange rate risks in international trade settlements. The export prices of goods denominated in U.S. dollars may rise due to exchange rate fluctuations, losing price competitiveness. Meanwhile, the cost of imported goods increases, squeezing the sellers’ profit margins.

Political involvement will reshape the positioning of cross-border e-commerce platforms. In the face of strong trade protectionism, some leading international cross-border e-commerce platforms may adjust their business strategies in Southeast Asia, increasing their resource investments and market expansion efforts to capture more market share. Meanwhile, Southeast Asian local cross-border e-commerce platforms may accelerate their development to enhance their competitiveness under mounting competitive pressure.