Lee said social safety nets, upskilling programmes and support mechanisms for small and medium enterprises (SMEs) must be scaled up to cushion the impact of global shifts.

“A more connected and compassionate Asean – one that not only competes, but also fosters trust – will be key to weathering this storm,” he said in a Facebook post tonight.

Yesterday, US president Donald Trump announced a new “reciprocal” global tariff regime effective April 9 that sets a baseline 10% tariff on all imports and an additional surcharge based on each country’s tariffs on US goods.

Among others, the tariffs include 34% on China, 32% on Indonesia, 26% on India, 24% on Malaysia, and 20% on the European Union.

According to the US Bureau of Economic Analysis, Malaysia ranked 15th on the US list with a trade surplus of US$24.8 billion (RM110.17 billion) in 2024.

“Beyond economic metrics lies a deeper human toll. Millions of working-class citizens face the grim prospects of declining export demand, reduced factory output and job losses.

“SMEs, which make up more than 90% of Asean businesses, are especially vulnerable. Operating on narrow margins and often lacking access to credit, many SMEs will struggle to absorb the impact of new tariffs or pivot to alternative markets,” said Lee .

He warned against a “piecemeal” country-by-country response to the tariff, saying Asean must act collectively against the global headwinds.

“The region must deepen intra-Asean economic integration by accelerating initiatives such as the Asean Trade in Goods Agreement upgrade, harmonising standards, and reducing non-tariff barriers.

“Investment in regional infrastructure, digital trade, and sustainable industries can create new engines of growth, less dependent on volatile external markets.

“Crucially, Asean must also present a unified voice in global forums like the World Trade Organization and the G20, advocating for fair and open trade,” he said.