Southeast Asian nations have long expanded exports by attracting foreign companies, but now face the need to upgrade their own industrial capacity amid the destabilisation of the global trade order triggered by US President Trump’s tariffs.

The European Union (EU) is very unlikely to impose crippling tariffs on India or China, the main buyers of Russian oil, as US President Donald Trump has urged the bloc to do, EU sources said.

US tariffs are increasingly pressuring the already challenged petrochemicals sector, with China, the top producer, shifting its exports to Asia, industry executives said at a conference in Singapore on Tuesday.

President Donald Trump moved Friday to exempt graphite, tungsten, uranium, gold bullion and other metals from his country-based tariffs, while subjecting silicone products to the levies.

President Donald Trump gave Japanese automakers some relief by cutting his high U.S. tariffs on their vehicles, but the reduced levies still mean big pain for Japan's smaller car companies, which will stay under pressure in the crucial market.

US President Donald Trump threatened a probe on the European Union that could prompt fresh tariffs, in response to the bloc’s fining of Alphabet Inc’s Google over findings the company exploited its advantage over rivals.

The next reading of Malaysia’s manufacturing activity will be closely watched as a key gauge of resilience, even as August data showed tentative signs of improvement, analysts said.

US tariffs took a toll on factory activity across Asia, overshadowing a surprisingly upbeat performance in China, private surveys showed on Monday, keeping pressure on policymakers to underpin the region's fragile economic recovery.

The US tariff exemption for package shipments valued under US$800 (RM3,267) ends permanently on Friday, with a six-month transition period under which postal service shippers can opt to pay a flat duty of US$80 to US$200 per package.

The European Commission proposed on Thursday removing duties on imported US industrial goods in return for reduced US tariffs on European cars, a key part of the trade agreement the EU and the US struck last month.