KUALA LUMPUR – Retaliation is not an option – that was the unified message from Asean Economic Ministers during a Special Meeting convened today in response to the United States’ recent announcement of steep reciprocal tariffs on Asean exports.
Economic ministers from all Asean member states, joined by Timor-Leste and the Asean secretary-general, met today to discuss the implications of Washington’s April 2 decision to impose tariffs ranging from 10% to 49% on selected imports, with Malaysia being hit with a 24% tariff.
In a joint statement, the ministers collectively rejected the basis of the US’ calculations, citing serious concerns over the long-term consequences for Asean’s growth, regional integration, and trade stability.
Despite US President Donald Trump’s subsequent announcement of a 90-day pause – applying only a baseline 10% tariff while negotiations are ongoing – Asean leaders made clear their position: retaliation will not be pursued.
Instead, they called for strategic, pragmatic, and non-retaliatory dialogue to resolve the issue in a manner that upholds mutual interests and regional stability.
“Asean remains committed to a forward-looking and constructive engagement with the United States,” the statement issued by the Investment, Trade and Industry Ministry said, emphasising the importance of preserving open trade channels and avoiding escalation.
The meeting also echoed recent warnings from the World Trade Organisation’s director-general, who cautioned that intensifying trade tensions between the US and China could reduce global real GDP by nearly 7%.
Asean leaders underscored that actions such as the US Liberation Day tariffs contradict the principles of a free, fair, and rules-based multilateral trading system, creating uncertainty and eroding trust in global trade.
In response, the ministers agreed in principle to establish an Asean Geoeconomics Task Force, which will serve as a strategic platform for policy formulation, risk assessment, and regional economic positioning amid a shifting global landscape.
This joint stance will be brought forward to the upcoming Special Asean Leaders’ Meeting, where heads of state will explore further measures to safeguard regional trade, secure supply chains, and attract cross-border investment.
In the statement, the Investment, Trade and Industry Ministry affirmed that Malaysia will continue direct engagement with the US to seek an equitable resolution.
The Asean bloc reaffirmed its long-standing support for a transparent, inclusive, and sustainable global trade framework with the WTO at its core, pledging to uphold the principles that have guided regional economic cooperation since 1967. – April 10, 2024