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US Tariffs: Wares, Weapons, Geopolitics Are ASEAN's Bargaining Chips, Say Experts

The Straits Times

|

April 08, 2025

Region seeks to forge united front even though levies affect members unevenly

- Arlina Arshad

US Tariffs: Wares, Weapons, Geopolitics Are ASEAN's Bargaining Chips, Say Experts

JAKARTA - South-east Asian countries, unexpectedly hit hard by the US' sweeping tariffs, are scrambling to forge a united front, with officials and analysts saying that the region's bargaining chips could range from more trade purchases to leveraging its geopolitical position on the South China Sea.

Also being talked about is the possibility of a summit of ASEAN leaders and US President Donald Trump in Washington, which Malaysian Prime Minister Anwar Ibrahim had broached recently.

But analysts also sounded a note of caution about whether the grouping could indeed come to a consensus, noting that the tariffs affect ASEAN members unevenly, making a united response unlikely.

Malaysia, which chairs the 10-nation ASEAN grouping in 2025, is leading the charge. Datuk Seri Anwar has made regional solidarity central to defending shared trade interests, with a special virtual meeting of ASEAN economic ministers set for April 10 to coordinate a common strategy.

"Malaysia, as ASEAN chair, will lead efforts to present a united regional front, maintain open and resilient supply chains, and ensure ASEAN's collective voice is heard clearly and firmly on the international stage," Mr Anwar said in an April 6 statement.

"We must all be mentally prepared to weather the potential storm ahead and work together as a nation to safeguard our continued prosperity," he added.

US tariffs on exports from the region — which range from a base rate of 10 per cent to 49 per cent — are set to take effect on April 9. Singapore is the only ASEAN country spared a sharp hike, drawing the base rate of 10 per cent.

Mr Anwar posted on Instagram on April 5 that he had spoken with leaders from Indonesia, Singapore, the Philippines and Brunei to coordinate a joint stance. Indonesian President Prabowo Subianto also visited Mr Anwar in Putrajaya over the weekend. While officially a courtesy call, Indonesian officials suggested the tariffs were likely discussed.

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