As world leaders convene in New York for the United Nations General Assembly this year, the global conversation is dominated by trade. With sweeping tariffs back in the headlines, trade policy has returned to center stage. 

For American companies, higher tariffs on products from Southeast Asia matter greatly. But if the U.S. limits its focus to reciprocal tariff schedules alone, we risk missing the bigger story — and the bigger opportunity — in Southeast Asia. 

That story is the Association of Southeast Asian Nations, known by the acronym ASEAN. Quietly but steadily, the 10 nations of ASEAN have become one of the world’s most dynamic economic engines. The region has delivered decades of sustained growth, producing rising incomes and expanding middle classes. 

Unlike China, where demographic decline has begun, ASEAN is powered by a demographic dividend: a young, digitally savvy population eager to embrace artificial intelligence, e-commerce and technological innovation. The Digital Economy Framework Agreement, now being shaped within ASEAN, will set the rules for this next era of growth. 

This is not tomorrow’s market; it is today’s. ASEAN is now the world’s fifth-largest economy and on track to climb higher. 

ASEAN governments face rapid urbanization, needing infrastructure, energy security, digital connectivity and healthcare — areas that align with U.S. strengths in information and communication technology, financial services, health and, increasingly, aerospace, defense and security. 

Aerospace, defense and security are often overlooked, but it deserves attention. The region is bullish on it. Nations across Southeast Asia are looking to the U.S. not just as a supplier of cutting-edge platforms, but as a trusted partner in training, joint exercises and dual-use innovation. Record-breaking exercises, such as Garuda Shield with Indonesia, illustrate the scale of the U.S.-led cooperation now underway. 

The Philippines has been consistent in its interest in deepening defense ties. Vietnam, in keeping with its overall growing ties with U.S. firms, is interested in U.S.-made defense equipment. Indonesia is eager to modernize its armed forces and expand international partnerships. For many in the region, U.S. defense ties are also a pragmatic way to balance trade surpluses while advancing modernization.

This convergence of demand and capability creates enormous opportunity. While U.S. tariff policy has sparked bilateral talks with ASEAN, that is only the first step. To unlock ASEAN’s full potential, the U.S. must also tackle the regulatory and structural barriers that hold back American investment and growth. 

These barriers are real. They include local content requirements that distort supply chains, double taxation rules that penalize cross-border investment and data localization mandates that stifle digital innovation. Every one of these non-tariff barriers is a speed bump on the road to prosperity. 

Removing them would not be a concession on ASEAN’s part — it would be a win-win. U.S. companies could invest and expand more freely, generating greater resources for investment in America, while ASEAN economies gain greater efficiency, innovation and faster growth. 

For American policymakers, this is a moment to think strategically. ASEAN is not simply another regional bloc — it is a global player. Its digitally connected youth, its hunger for energy and infrastructure and its growing role in global supply chains make it indispensable to the 21st-century economy. 

At a time when supply chains are being rebalanced and trusted partners are more valuable than ever, ASEAN offers the U.S. a chance to secure resilient, mutually beneficial supply chains as more productive capacity is brought online in America. 

The administration’s tariff policies have reignited the trade debate. That momentum should now be channeled into deeper and more strategic supply chain connectivity with ASEAN. Tariffs may make the headlines, but the real breakthroughs will come from tackling the invisible barriers that slow investment, frustrate businesses and leave growth on the table. 

The stakes are clear. If the U.S. leans in, ASEAN’s next chapter can bring shared prosperity, technological leadership and security cooperation. Hesitate, and others will fill the gap. 

ASEAN has proven it can grow, adapt and innovate. Now it is time for the U.S. to match that ambition. We must think bigger than tariffs and invest in ASEAN as a partner. ASEAN is not waiting. Neither should we. 

Ambassador Brian McFeeters is president and CEO of the US-ASEAN Business Council.