Analysts: Asean's collective approach could strengthen tariff negotiation with US

New Straits Times

06-05-2025

KUALA LUMPUR: Moving collectively as a regional economic bloc could give the 10 Asean member states greater leverage in reciprocal tariff negotiations with the United States (US), said analysts.
Universiti Utara Malaysia (UUM) deputy vice-chancellor (Academic and International) Prof Dr Mohd Azizuddin Mohd Sani said that Asean, with its combined economic strength of US$4 trillion and a population of 640 million, holds greater influence when negotiating as a bloc, rather than as individual nations.
"Although some countries have engaged in individual negotiations, approaching the talks as a collective gives us greater bargaining power and the ability to push for our interests," he said.
"Negotiating individually may put us at a disadvantage, so I see a collective approach as both systematic and strategic," he said when contacted by Bernama.
Mohd Azizuddin said the full backing of Asean member states for Malaysia's push to form a collective voice in the negotiations reflects their confidence in the country's leadership as this year's Asean chair.
"This reflects Prime Minister Datuk Seri Anwar Ibrahim's strategic approach to addressing the impact of these tariffs by responding as a united economic bloc," he said.
During a briefing session on the US tariffs at a special Parliament session yesterday, Anwar emphasised that any position on the tariffs should be adopted collectively, reflecting Asean's maturity and strategic foresight.
Anwar, who is also the Finance Minister, said that member states had expressed full support for Malaysia's efforts to forge a unified Asean voice, underscoring the bloc's solidarity and economic strength in engaging with the US.
Principal adviser at the Pacific Research Centre of Malaysia Dr Oh Ei Sun said that Malaysia is making strong efforts to forge a collective Asean response to the US tariff measures.
He agreed that a united stance would boost the bloc's bargaining power, but noted that its effectiveness hinges on the commitment of the major Asean economies.
"Now it's up to the major Asean economies to come on board. They should realise that a collective reaction is, perhaps, more conducive to their national interest as Asean could negotiate better terms collectively," said the senior fellow at the Singapore Institute of International Affairs.
Meanwhile, geostrategist Prof Dr Azmi Hassan from the Nusantara Academy for Strategic Research said that reaching an Asean consensus is crucial, despite each member state facing different tariff rates, ranging from 10 to 49 per cent, and having its own consultation mechanisms.
"Each country has its own justification and strategy, but so far, all have agreed not to impose reciprocal tariffs on the US, as China has done," he said.
Azmi also emphasised the need to strengthen intra-Asean trade and expand into new markets as a way to cushion the impact of the US tariffs.
"The Prime Minister mentioned the Asean Summit with the Gulf Cooperation Council (GCC) and European countries. While negotiations for a Free Trade Agreement (FTA) with the European Union are still ongoing, it can be considered a new market," he said.
On April 9, the US administration announced a 90-day pause of individual retaliatory tariffs imposed on most countries, while maintaining the base tariff of 10 per cent.
The decision followed protests and concerns from more than 75 countries, including Malaysia, over the sudden imposition of the tariffs.