In a joint statement, Asean’s economic ministers said the organisation wanted 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,” they said after their meeting in Kuala Lumpur today.
“In that spirit, Asean commits to not imposing any retaliatory measures in response to the US tariffs.”
The sweeping tariffs announced last week sparked the most intense period of financial market volatility since the early days of the Covid-19 pandemic, wiping out trillions of dollars from stock markets and leading to fears of a global recession.
In a stunning reversal yesterday, Trump said he would delay the tariffs for 90 days. However, he said a basic levy of 10% on dozens of countries would remain, and that he would raise the tariff on China from 104% to 125%.
Earlier today, investment, trade and industry minister Tengku Zafrul Aziz said while he welcomed the development, the unpredictability of US trade actions would continue to impact the global trade landscape, especially for Asean.
In their statement, the economic ministers said the tariffs would disrupt regional and global trade and investment flows as well as supply chains, affecting businesses and consumers worldwide, including in the US.
The ministers also warned that the tariffs would hinder economic progress in Asean and impact the region’s economic security and stability, especially as the US is Asean’s largest source of foreign direct investment and its second largest trading partner last year.
Describing the US as a longstanding and valued economic partner of Asean, the ministers said Asean nations remained committed to safeguarding the region’s economic interests as well as maintaining strong and mutually beneficial trade relations with the US.
The ministers also reaffirmed their readiness to work together with the US under the Asean-US Trade and Investment Framework Agreement to explore mutually acceptable solutions to 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.
“Asean believes that an enhanced, robust and forward-looking Asean-US economic cooperation framework will contribute to the prosperity of our people and the broader global economy,” they said.
“Such a framework would strengthen constructive engagement, foster regional supply chains, and drive innovative initiatives to ensure a resilient, secure, stable, and mutually beneficial economic relationship.”