The announced reciprocal tariff imposed by the US on April 2 has become a breakpoint to international trade. While the US has always been advocating for liberalism in trade and its commitment to non-barrierism or non-protectionism, the current Trump administration has nevertheless positioned itself in opposition to this principle. As it sets its priority on national economic growth, due to growing concerns on its large trade deficit, through protected national production and market, the method which Trump finds liberalising and suitable is via tariff – imposed mainly towards its political economy rival, China, and countries which obtains large trade surpluses with the US. The latter here includes Southeast Asian economies, which has been long known for its resources and export-led growths. Trade protectionism means a threat to Southeast Asian economy, especially those of low growth rate. As a regional bloc that binds dialogues of all Southeast Asian nations on trade and political security, ASEAN’s outlook and response is crucial to decide the regional stance of Southeast Asia to take proper steps in ensuring economic growth through safeguarding its export power amid this unprecedented political economic condition.
How Unilateral Tariffs Impact ASEAN
As per April 2, 2025, Southeast Asian nations were imposed tariffs at the following rate: Cambodia (49%), Lao PDR (48%), Vietnam (46%), Myanmar (44%), Thailand (36%), Indonesia (32%), Malaysia & Brunei (24%), Philippines (17%), and Singapore (10%). It is apparent that the mainland Southeast Asian nations are the ones significantly impacted. Cambodia and Lao PDR’s exports reliance to the US in textile, footwear and wood furniture are known to exacerbate both economies more than other maritime nations. Following that, Vietnam, as a growing emerging nation, has been hit the hardest following its record in reaching US$123 billion trade surplus with the US in 2024. For Thailand and Indonesia, this would negatively affect their agricultural resources exports, which includes rice, rubber and palm oil. Malaysia, on the other hand, would also be impacted particularly in its electronics sector. The aforementioned goods will certainly face supply disruptions as long as tariffs take place. Sooner or later, the FDI flows to ASEAN will deter following the unstable circumstance.
The ranging rates imposed, as potential consequences are considered, has found ASEAN a common ground to collectively call a regional response – within 72 hours, the Malaysian Prime Minister Anwar Ibrahim, urges fellow nations to further discuss the regional stance on the president’s policies. As a chairman country for ASEAN, Malaysia is challenged to lead conversations internally on the effective approach to save the regional rights to free trade. Despite its lower rate compared to others, Malaysia’s response in prioritising internal dialogue and uniform stance for all ASEAN member states shows their commitment to regional decisiveness, as emphasised in the ASEAN Charter.
National Responses
While regional uniformity is crucial, the diversified rates have found nation states to respond in a certain way in the first place. Indonesia, Thailand, Myanmar, Brunei and Laos, have chosen diplomatic negotiation methods in efforts to de-escalate tariffs. Indonesia has specifically sent senior trade officials, as it affirms its desire of fair trade. Vietnam has also sent its special envoy, likewise Indonesia, with aims to adjust some tariffs on U.S. goods imposed in the first place. Thailand, Myanmar and Brunei have also conducted uniform movement, as they conduct internal economic assessments. On the other hand, Singapore and Philippines, having the two lowest rates, remain to take a watchful stance while monitoring the current development. For Malaysia, it rather focuses on coordinating the aforementioned nations response, finding common grounds for ASEAN’s response and feedback.
International Responses
The first ASEAN’s response can be highlighted through the Special ASEAN Economic Ministers Summit, on April 10. The summit has bounded outlooks from diversified member states on the current economic state, and has produced a foundational commitment for ASEAN states to focus on their diplomatic negotiation strategy. Furthermore, ministers agree to oppose any retaliatory measures towards the US, despite the negative effects economies have attained, as it supports the WTO stance and values. Consensus on dynamic and conventional methods to trade talks is being set as a priority to ASEAN. The summit has also encouraged an open communication between Southeast Asian states to follow the development of the economic affairs and to ensure sustainable economic ties with the US.
Parallel to these efforts, the summit has called international businesses within and outside ASEAN to build
resilience under the struggling condition, through utilising and strengthening intra-ASEAN trade – developing
investments potentials between ASEAN member states. Otherwise, it also recognises the importance of trade engagements with other regional blocs, such as the EU, and the Eurasian Economic Union, which includes Middle Eastern countries. Most importantly, ASEAN has identified BRICS to be the relevant emerging trade partners, as Indonesia becomes its newest member.
In this situation, it is highly possible that China becomes an alternative main trading partner to ASEAN, alongside the above-mentioned blocs. Through China’s Belt and Road Initiative, realised through the Regional Comprehensive Economic Partnership (RCEP) and China-ASEAN Free Trade Area (CAFTA), China has a large opportunity to enter the ASEAN market to re- stabilise ASEAN’s economy. Nevertheless, Southeast Asian economies have meticulously opted to locate its focus away from complete trade reliance on China, as it oversees the unstable political economic relations between the US and China. There are worries of higher tariff impositions, if the region allows this. ASEAN hence ensures that its survival method is run in an unbiased and neutral manner.
All in all, it is foreseeable how ASEAN pushes for a collective response in dialogues and collaboration with other blocs. At its essence, ASEAN strongly believes that such uniformity could increase bargaining power with hopes to resolve the current economic instability. As members have been committed to the ASEAN charter, ASEAN is believed to stand on its centrality and its way to de-escalate economic obstacles in a pragmatic way. While the future remains unclear on tariffs to ASEAN, there have been issues on ASEAN to take harsh action. However, the current unified reaction should be based on ASEAN’s centrality and the spirit of diplomacy to push better relations with the US and its other trading partners.