[KUALA LUMPUR] South-east Asia’s top economic ministers ruled out retaliation and reaffirmed Asean’s trade commitments, as they sounded the alarm on Washington’s unilateral tariffs, warning that the move threatens to fracture supply chains, unsettle markets, and derail the bloc’s economic progress.
In a joint statement after an emergency meeting on Thursday (Apr 10), Asean economic ministers affirmed the bloc’s commitment not to hit back against the US tariffs. Acknowledging the US as its largest source of foreign investment and second-biggest trading partner, the ministers called for “frank and constructive” talks to prevent a deeper rupture.
The 10-member bloc also pushed for all parties to explore “mutually acceptable solutions” on issues of common interest.
“These include facilitating two-way trade and investment, deepening strategic trade partnerships, and enhancing supply chain connectivity and resilience through digital technology and innovation,” they noted in a statement after a video meeting of Asean economic ministers.
This comes as US President Donald Trump said on Wednesday he would temporarily lower the previous steep duties to 10 per cent “for the people who didn’t retaliate”. The suspension is set to last for 90 days as various countries are pressing for talks with the US to reach new bilateral agreements.
His unexpected turnabout took place less than 24 hours after the enforcement of hefty new tariffs, with six of nine South-east Asian countries targeted by the US administration facing steep levies of between 32 and 49 per cent.
A NEWSLETTER FOR YOU
Friday, 8.30 am
Asean Business
Business insights centering on South-east Asia’s fast-growing economies.
“We reaffirm our support for a predictable, transparent, free, fair, inclusive, sustainable, and rules-based multilateral trading system with the World Trade Organization at its core,” noted the Asean ministers.
“We will continue to work together more closely, with greater unity and solidarity, and remain committed to Asean’s rule-based trade.”
Asean, representing the fifth-largest economy in the world, also expressed concerns that the escalating trade tensions between the US and China will have a significant impact on the global economy.
Singapore Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong said: “We urge the US and China to address their differences through constructive engagement and dialogue.”
