05-05-2025
- Business
- New Straits Times
Asean united in choosing negotiation over tariffs
KUALA LUMPUR: Asean will not retaliate against the United States (US) over its recent imposition of reciprocal tariffs, opting instead to resolve the issue through diplomatic negotiations.
Prime Minister Datuk Seri Anwar Ibrahim said the decision was reached during the Asean Economic Ministers' Special Meeting convened on April 10 to address the tariff measures imposed by Washington.
Anwar said the regional bloc remains firmly committed to fostering strong and sustainable ties with the US, which is Asean's largest source of foreign direct investment (FDI) and second-largest trading partner.
"The US reciprocal tariffs have disrupted global trade and supply chains, particularly affecting small and medium enterprises (SMEs), and threaten Asean's overall economic stability.
"Asean is united in its stance, and we have agreed not to resort to retaliatory actions, but to address the matter through negotiations," he said in the Dewan Rakyat during a special sitting to discuss the US reciprocal tariffs.
Anwar, who also chairs Asean this year, said member states had expressed their full support for Malaysia in forming a collective Asean voice and presenting a united front as a major economic bloc in negotiations with the US.
"Asean represents an economic strength of US$4 trillion in 2024, with a population of 640 million.
"Any position on US tariffs must be taken collectively as an Asean bloc — a move that demonstrates our strategic maturity and wisdom."
Anwar added that the Asean Summit, together with the Gulf Cooperation Council (GCC) countries and China, will discuss the way forward in enhancing cooperation ahead of the US tariffs imposed on the affected countries.
"Countries aligned with us have strengthened their networks to address this issue, particularly through discussions with Asean nations, China, Japan, and other regional partners.
"I believe that by the end of this month, when we meet for the first time at the Asean Summit with the GCC countries and China, this issue will be a key agenda item."
He also revealed that Malaysia is expected to finalise the negotiations for the improvement of the Asean-China Free Trade Agreement (FTA) soon.
"With our domestic economic resilience and confidence, we are not easily swayed by external pressures or overwhelmed by challenges. We have the figures and data that can be managed and utilised wisely."
On April 2, US President Donald Trump announced a baseline 10 per cent tariff on all imports into the United States, with higher rates for selected countries — including a 145 per cent tariff on Chinese goods — while Malaysian exports were subjected to a 24 per cent tariff.
Among Asean nations, Cambodia faced the highest combined tariffs at 49 per cent, followed by Laos (48 per cent), Vietnam (46 per cent), and Myanmar (44 per cent).
Thailand was subjected to tariffs of 36 per cent, Indonesia 32 per cent, Brunei 24 per cent, the Philippines 17 per cent, while Singapore faced only the baseline 10 per cent tariff.
On April 9, Trump announced a 90-day pause on tariffs for most countries after acknowledging that the move had unsettled markets, but maintained the higher rates against China, intensifying the ongoing trade war between the two superpowers.
In response, Malaysia held discussions with US Trade Representative Jamieson Greer and Secretary of Commerce Howard Lutnick to address the matter.
The three-day mission was led by Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz on April 24.
