The local grouping’s economic officials announced in a combined statement that Asean would never take any punitive measures in response to US taxes following their meeting in Malaysia on April 10.
In the midst of the ensuing confusion, the 10-nation group, which was quickly hit hard by the mutual taxes announced by US President Donald Trump on April 2, reiterated its dedication to engage in a “frank and creative discourse” with Washington to handle trade-related concerns.
” We declare our shared desire to speak openly and constructively with the US about trade-related issues. A healthy and long-lasting marriage can only be achieved through open communication and collaboration.
Asean pledges to not take any hostile actions in response to the US levies, the statement read.
Tengku Zafrul Aziz, the chancellor of investment, commerce, and industry in Malaysia, presided over the specific Asean financial ministers ‘ meeting.
Asean also endorsed the World Trade Organization as the main forum for speech, highlighting its importance in preventing rising trade tensions and encouraging joint, rule-based solutions.
The gathering stated at the Asean Economic Ministers ‘ meeting that it would concentrate on strengthening regional trade integration by updating the Asean Trade in Goods Agreement and the Asean Digital Economy Framework Agreement.
The statement further stated that” we will also improve and develop our economic ties with Asean’s external partners, including our discourse partners, and look for opportunities for economic assistance with new partners.”
On April 10, Singapore’s deputy prime minister, Gan Kim Yong, claimed the continuing trade war had caused the world market to sharply deteriorate. GAN KIM YONG/LINKEDIN PHOTO
The continuing trade war, according to Singapore’s deputy prime minister Gan Kim Yong, is a sign of questionable periods that will have a significant impact on Singapore and the place, as he stated on April 10 at the online conference.
Singapore continues to stand ready to face these difficult times in support of Asean member states.
” We will also work closely with Asean member states to double down on regional economic integration, including looking for new growth initiatives like the green and digital economies, and strengthening Asean’s economic ties with outside partners,” said Mr. Gan, who is also Minister for Trade and Industry.
Asean is concerned about the rising US-China trade tensions, which poses a significant risk that could “lead to a long-term reduction in global, real gross domestic product by nearly 7 %,” according to a statement released by Malaysia’s investment, trade, and industry ministry later on April 10.
According to the statement, the Asean economic ministers have agreed to set up an Asean Geoeconomics Task Force to discuss and formulate regional policy recommendations for the future.
On April 2, Mr. Trump announced stringent import tariffs on US products, with tariffs for goods from South-east Asia ranging from a 1 % to as high as 49 %.
The reciprocal tariffs went into effect on April 9, but most nations suspended them for 90 days after that. However, China, a key target, continues to be subject to tariffs in the escalating trade war, at a staggering rate of 125 %, after Beijing imposed an 84 percent retaliatory tariff on US products.
South-east Asian countries were among the hardest hit by the US tariff rout, which has severely harmed the region’s export-reliant economies and potentially jeopardizes their growing role as a low-cost alternative to China in the supply chains of some of the world’s most recognizable brands.
Six out of nine South-east Asian nations targeted by the US administration were slapped with higher-than-expected tariffs ranging from 32 % to 49 % before the 90-day tariff pause was announced.
In contrast, tariffs of 20 % for the European Union, 24 % for Japan, and 27 % for India are applied.
However, Lee Heng Guie, the executive director of Malaysia’s Socio-Economic Research Centre, is still concerned about the current ambiguity surrounding US import tariffs.
” You can pause tariffs, but the ( business ) risk persists. How can manufacturers and owners of businesses make such unpredictable decisions?
A halt to export-oriented trade in South-east Asia could have a negative impact on the domestic economy, leading to a decline. Trump’s suspension is still a hazard, Lee told The Straits Times.
The US was Asean’s second-largest trading partner and its largest source of foreign direct investment in 2024.
For that year, Asean-US bilateral trade totaled US$ 476.8 billion ( S$ 635.9 billion ). While the region’s exports to the US totaled US$ 352.3 billion, Asian imports totaled US$ 124.64 billion.
In addition, Asean has avoided retaliation by using the US reciprocal tariffs, according to Dr. Lam Choong Wah, a senior lecturer at the University of Malaya’s Department of International and Strategic Studies.
The regional bloc decided to extend goodwill to Washington because of the significant strength gap between Asean and the US. Asean reiterated in its statement that the US should not be punishing and that the “less developed countries” should be treated with magnanimity. The Straits Times/ANN