Asean hits back at Trump’s ‘counterproductive’ trade tactics, warns of regional instability

Nevin Al Sukari - Sana'a - Asean foreign ministers voice concern over Trump’s tariff threats, warning they risk economic fragmentation and regional instability. — Picture by Yusof Mat Isa

KUALA LUMPUR, July 8 — South-east Asian nations will express “concern” over “counterproductive” US tariffs, according to a draft statement shared with AFP today, after Donald Trump threatened more than a dozen countries with higher levies.

The president’s trade war will likely be high on the agenda as foreign ministers from the Association of South-east Asian Nations (Asean) gather in Kuala Lumpur for talks this week.

“We expressed concern over rising global trade tensions and growing uncertainties in the international economic landscape, particularly the unilateral actions relating to tariffs,” Asean foreign ministers said, according to a draft Joint Communique.

Without directly naming the United States, the ministers said tariffs were “counterproductive and risk exacerbating global economic fragmentation and pose complex challenges to Asean’s economic stability and growth”.

Trump sent letters to 14 countries announcing that duties he had suspended in April would snap back — even more steeply — in three weeks.

Among those targeted were top trade partners Japan and South Korea, which each face 25 per cent tariffs.

Indonesia, Laos, Thailand, Malaysia and Myanmar — all members of the Asean — face duties ranging from 25 per cent to 40 per cent if they do not strike a deal with Washington by August 1.

Export-dependent Vietnam, which is also an Asean member, is one of only two countries to have reached a tentative agreement that spares it from Trump’s measures.

US Secretary of State Marco Rubio will join his Asean counterparts on Thursday and Friday as part of his first trip to Asia since taking his post.

‘Uplifting’ message?

Rubio will likely tell leaders that the United States wanted to “rebalance” its trade relationships, a senior State Department official told reporters on condition of anonymity.

His visit coincides with that of his Russian and Chinese counterparts, Sergei Lavrov and Wang Yi.

But an analyst told AFP that Rubio is expected to play a placating role after Trump’s latest tariff announcements.

“We can be hopeful for an uplifting message by Rubio, which reaffirms the importance of South-east Asia to US foreign policy,” said Mustafa Izzuddin, an international affairs analyst with consultancy Solaris Strategies Singapore.

But he added: “Deepening engagement of the US in South-east Asia may be stymied by Trump’s transactional approach to internationalism.”

The US leader had unveiled sweeping tariffs on imports on what he called “Liberation Day” on April 2, including a baseline 10 per cent tariff on all countries.

But after turmoil on markets he quickly suspended all those above 10 per cent for 90 days to allow for talks.

At a summit in late May, South-east Asian leaders expressed their deep concern at Trump’s protectionist offensive.

The tariffs were due to kick back in tomorrow and Trump sent the letters in advance of that deadline.

Malaysia’s trade ministry said today it would continue negotiations to reach “a balanced, mutually beneficial, and comprehensive trade agreement”.

Thailand’s acting prime minister Phumtham Wechayachai told reporters today he wanted a “better deal”, adding that “the most important thing is that we maintain good relations with the US”. — AFP