ASEAN Vows No Retaliation Against U.S. Tariffs

Southeast Asia: ASEAN economic ministers had decided against imposing any retaliatory measures in response to the newly announced U.S. tariffs, as stated in a joint declaration following a special meeting held in Malaysia. Despite having been severely impacted by reciprocal tariffs ranging from 10% to 49%, the 10-nation bloc had opted to pursue a “frank and constructive dialogue” with Washington to address trade concerns. The grouping had reiterated its support for the World Trade Organisation and committed to strengthening regional economic integration through the upgrading of the ASEAN Trade in Goods Agreement and the ASEAN Digital Economy Framework Agreement. The ministers had also resolved to expand economic ties with external and dialogue partners and had agreed to establish an ASEAN Geoeconomics Task Force to formulate coordinated responses to emerging challenges. 

The sweeping U.S. tariffs, announced on April 2, had been briefly enforced on April 9 before being paused for 90 days for most countries. However, six out of nine Southeast Asian countries had already been hit with higher-than-expected tariffs ranging from 32% to 49%, compared to 20% for the EU, 24% for Japan, and 27% for India. China had continued to face a 125% tariff rate following its own retaliatory move of 84%. Concerns had been raised about the unpredictability of the tariff suspension, with warnings of spillover effects on Southeast Asia’s export-driven economies. In 2024, the U.S. had been ASEAN’s largest source of foreign direct investment and second-largest trading partner, with total bilateral trade valued at USD 476.8 billion, including USD 124.6 billion in imports from the U.S. and USD 352.3 billion in exports. 

Source: Straitstimes