Call for deeper integration in Asean as tariffs menace

Bloc seeks greater collaboration

- NAREERAT WIRIYAPONG

Southeast Asian nations have taken steps to deepen economic integration within Asean and broaden collaboration with other regional groupings amid ongoing global uncertainty and disruptions from US tariffs, says Gan Kim Yong, Singapore's deputy prime minister and minister for trade and industry.

"Businesses must be prepared for exports to the US to cost more in that market. We cannot bet on the possibility that tariffs will go away. Given its rising fiscal deficit, tariffs will increasingly be an important source of tax revenue for the US government," said Mr Gan.

"Therefore, exports to the US will result in more costly products for some time to come."

He said businesses must also be prepared for greater scrutiny over their production and supply chains, potentially setting up separate lines for exports to the US.

The US will likely extend preferential tariffs on imports of steel, vehicles and pharmaceuticals, said Mr Gan.