As the rotating chair of ASEAN this year, Malaysia is coordinating member countries to hold an emergency meeting to discuss countermeasures to the US tariffs. Malaysian Prime Minister Anwar said that Malaysia and ASEAN countries must unite to reach a consensus on the US imposition of reciprocal tariffs to lay a solid foundation for the next negotiations.
On April 7, Anwar said at the meeting that the United States once supported free trade and established the World Trade Organization (WTO) and the General Agreement on Tariffs and Trade (GATT), but now it has taken a completely different approach.
Anwar criticized the US decision to impose tariffs as inappropriate, even Heard Island and McDonald Islands, where only penguins live, were included in the scope of taxation.
Although US President Trump’s reasons for imposing tariffs are untenable, Anwar said that ASEAN countries cannot take this issue lightly under the current uncertain global economic and political situation. The Malaysian government will adopt a moderate and pragmatic response, contact ASEAN partners, and act as a collective. As a region with a population of 640 million and one of the strongest economies in the world, ASEAN should demonstrate collective strength and firm unity.
Malaysian Minister of Investment and Trade Zafrul said Malaysia’s tariff rate on US goods is 5.6%, not 47% as claimed by the United States. He said the government is taking measures to address the impact of tariffs, including setting up a working group to collect feedback from stakeholders and assess the impact on various industries. Zafrul also plans to meet with US officials at the end of this month to discuss tariffs.
Southeast Asian countries consider cutting tariffs on US products
Indonesian President Prabowo said he hopes that relations with the United States will be fair and equal, and Indonesia will resolve tariff issues through diplomatic channels and will send a high-level delegation to the United States. Indonesia also plans to buy more US goods such as cotton, wheat, oil and gas, as well as promise to address non-tariff barriers and possible tax cuts on US products.
Cambodian Prime Minister Hun Manet issued a statement to clarify that Cambodia’s highest tariff on US goods is 35%, while the average tariff is only 29.4%, not 97% (as claimed by the United States).
In response to US tariffs, Cambodia will first reduce tariffs on 19 US goods to 5%, and set up a working group to negotiate in the US at any time. The Philippines is also considering reducing tariffs on US goods.
Vietnamese General Secretary Su Lin has expressed his willingness to reduce tariffs on US goods to zero, and asked Trump to postpone the tariff measures originally scheduled to take effect on April 9 for at least 45 days.
US trade advisers said that if only reducing tariffs on the US, or even reducing tariffs to zero, it will still not make up for the trade deficit. In trade with Vietnam, the United States will still face a trade deficit of about US$120 billion. The problem lies in the non-tariff measures implemented by Vietnam, including export subsidies and suspected platforms for Chinese goods to evade tariffs.
Trump recently announced the imposition of reciprocal tariffs, which have severely impacted many Southeast Asian countries, including Cambodia, which has been levied 49%; Vietnam, 46%; Indonesia and Thailand, 32% and 36% respectively; Malaysia, 24%; and the Philippines, 17%.