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ASEAN will not retaliate against US tariffs, say its economic ministers

KUALA LUMPUR (The Straits Times/ANN) -- ASEAN will not take any retaliatory measures in response to US tariffs, the regional grouping’s economic ministers said in a joint statement after their meeting in Malaysia on April 10.
The 10-nation group – which was unexpectedly hit hard by the reciprocal tariffs announced by US President Donald Trump on April 2 – emphasised its commitment to pursue a “frank and constructive dialogue” with Washington to address trade-related concerns, amid the ensuing uncertainty.
“We express our common intention to engage in a frank and constructive dialogue with the US to address trade-related concerns. Open communication and collaboration will be crucial to ensuring a balanced and sustainable relationship
“In that spirit, ASEAN commits to not impose any retaliatory measures in response to the US tariffs,” the statement read.
The special ASEAN economic ministers’ meeting was chaired by Malaysian Minister of Investment, Trade and Industry Tengku Zafrul Aziz.
ASEAN also expressed its support for the World Trade Organisation as the primary platform for dialogue, highlighting its role in preventing escalating trade tensions and promoting cooperative, rules-based solutions.
At the ASEAN economic ministers’ meeting, the grouping said it would focus on deepening regional trade integration through an upgrade of the ASEAN Trade in Goods Agreement and the ASEAN Digital Economy Framework Agreement.
“We will also strengthen and expand our economic links with ASEAN’s external partners, including our dialogue partners, and seek out opportunities for economic cooperation with new partners,” the statement added.
Singapore’s Deputy Prime Minister Gan Kim Yong, who attended the virtual meeting, said on April 10 that the ongoing trade war marks a sharp fracturing of the global economy, signalling uncertain times that will have a profound impact on Singapore and the region.
“Singapore remains determined to navigate through these challenging times in solidarity with ASEAN member states.
“We will also continue to work closely with ASEAN member states to double down on regional economic integration, including seeking out new growth initiatives such as the digital and green economies, and expanding Asean’s economic links with external partners,” added Mr Gan, who is also Minister for Trade and Industry.
A statement issued by Malaysia’s Investment, Trade and Industry Ministry later on April 10 said that ASEAN is concerned about the escalating US-China trade tensions posing a significant risk that could “lead to a long-term reduction in global, real gross domestic product by nearly 7 percent”.
Looking ahead, the ASEAN economic ministers have agreed to establish an ASEAN Geoeconomics Task Force to discuss and formulate a regional policy response to emerging economic and geopolitical challenges, the statement added.
On April 2, Mr Trump announced sweeping tariffs on imports into the US, with goods from South-east Asia attracting tariffs ranging from a baseline rate of 10 percent to as high as 49 percent.
The reciprocal tariffs took effect on April 9 but were suspended hours later for a period of 90 days for most countries. Key target China, however, continues to face tariffs in the escalating trade war, at a whopping rate of 125 percent, after Beijing imposed a retaliatory tariff of 84 percent on goods from the US.
Before Mr Trump’s abrupt decision to postpone the high tariffs imposed for most countries, South-east Asian nations were among the hardest hit by the US tariff rout, which has dealt a heavy blow to the region’s export-reliant economies and potentially jeopardises their growing role as a low-cost alternative to China in the supply chains of some of the world’s most recognisable brands.
Before the 90-day tariff pause was announced, six out of nine South-east Asian countries targeted by the US administration were slapped with higher-than-expected tariffs ranging from 32 percent to 49 percent.
This compares with tariffs of 20 percent for the European Union, 24 percent for Japan and 27 percent for India.
However, Mr Lee Heng Guie, executive director of Malaysia’s Socio-Economic Research Centre, remains concerned about the prevailing uncertainty over tariffs on imports into the US.
“You can pause tariffs, but the (business) risk remains. How can manufacturers and business owners plan ahead with such unpredictability?
“A slowdown in export-oriented trade in South-east Asia will have a spillover effect on the domestic economy, potentially leading to a downturn. I am still cautious about Trump’s suspension,” Mr Lee told The Straits Times.
In 2024, the US was ASEAN’s largest source of foreign direct investment and its second-largest trading partner.
For that year, ASEAN -US bilateral trade totalled US$476.8 billion (S$635.9 billion). ASEAN imports of US goods amounted to US$124.6 billion, while the region’s exports to the US stood at US$352.3 billion.
Meanwhile, Dr Lam Choong Wah, a senior lecturer at the Department of International and Strategic Studies, University of Malaya, noted that ASEAN has taken a softer approach by not retaliating against the US reciprocal tariffs.
“Given the significant disparity in strength between ASEAN and the US, the regional bloc chose to extend goodwill to Washington. In its statement, ASEAN reiterated that ‘least developed countries’ should not be punished and should be treated with magnanimity by the US.”

 (Latest Update April 12, 2025)