Anti-fronting policy: U.S. exerts pressure on China’s proxy network in Asia

On July 8, 2025, the Donald Trump administration revised its tariff policy, sending ultimatum letters to most Indo-Pacific states warning of new tariffs. According to these letters, the greatest pressure will target Myanmar and Laos, with their goods facing a 40% tariff starting August 1.

From the perspective of the Donald Trump administration, Laos is among the key “harmful” jurisdictions in Southeast Asia that serve as proxies for China to bypass U.S. tariffs and export controls (Chinese fronting). Myanmar and Cambodia are also included in this group.

Contrary to Beijing’s initial intentions to rally Global South countries around itself ahead of potential actions regarding Taiwan, the opposite trend is now evident. China is gradually losing influence over key Global South nations and is left with virtually no significant regional allies.