Malaysian Prime Minister Anwar Ibrahim delivers his speech during the 58th Association of Southeast Asian Nations Foreign Ministers’ Meeting at Kuala Lumpur.

Malaysia calls for stronger inter-ASEAN trade amid tariffs uncertainty

KUALA LUMPUR (The Straits Times/ANN) -- Malaysia’s Prime Minister Anwar Ibrahim on July 9 urged South-east Asian countries to “act with purpose” and enhance trade among each other in the face of global uncertainty, as regional foreign ministers met amid renewed jitters over US trade tariffs.
Mr Anwar, addressing ministers of the 10-member Association of South-east Asian Nations, described tariffs, export restrictions and investment barriers as “the sharpened instruments of geopolitical rivalry”. He did not mention the United States specifically.
“As we navigate external pressures, we need to fortify our internal foundations. Trade more among ourselves, invest more in one another, and advance integration across sectors with resolve,” he said.
“As global conditions remain uncertain, there is no overstressing the need to act with purpose in our own region.” US President Donald Trump on July 7 announced hefty levies of between 25 percent and 40 percent on six South-east Asian countries, despite concerted efforts by some to offer broad concessions and negotiate lower rates.
The export-reliant ASEAN is collectively the world’s fifth-biggest economy, with some members beneficiaries of supply chain realignments from China.
Indonesia, Thailand and Malaysia are seeking further talks ahead of the tariff implementation on August 1.
The gathering in Kuala Lumpur will be include a flurry of meetings between ASEAN and its major trade partners, including the United States, China, Japan, Russia, India and the European Union.
China’s Foreign Minister Wang Yi and Russian counterpart Sergei Lavrov are expected to join from July 10, as will US Secretary of State Marco Rubio, who makes his first trip to Asia looking to smooth over relations with allies and partners rattled by Mr Trump’s tariff strategy.
ASEAN foreign ministers will express “concern over rising global trade tensions and growing uncertainties in the international economic landscape, particularly the unilateral actions relating to tariffs”, according to a draft joint communique.
The draft, dated July 7 and before the latest tariff rates were announced, did not mention the United States and used language similar to an ASEAN leaders’ statement in May. Both said tariffs were “counterproductive and risk exacerbating global economic fragmentation”.
The bloc in April said it would not retaliate and its leaders have pledged any bilateral deals they strike with Washington would not harm fellow ASEAN members.
OCBC senior ASEAN economist Lavanya Ventakeswaran said countries including Vietnam face additional uncertainty over tariffs targeting transshipments, a measure aimed at products largely from China, with questions remaining over enforcement and implementation.
“The bottom line is that it’s going to be quite complicated moving forward,” Ms Ventakeswaran said. The issue has also been complicated by Mr Trump’s initial threat of an additional 10 percent on tariffs on countries aligned with the BRICS grouping. Indonesia is a member, while Malaysia, Thailand and Vietnam are partner countries.

(Latest Update July 10, 2025)