Investment, Trade and Industry Minister Tengku Zafrul said that the US's plan to impose tariffs on certain imported products will be one of the topics at the 31st ASEAN Economic Ministers' Informal Meeting (AEM) to be held tomorrow.
“We will not only discuss from the perspective of tariffs and trade impacts but also explore areas such as technology security, supply chain, and economic resilience so that we can synchronize according to ASEAN principles.”
He said this at a press conference today in conjunction with the meeting and in response to media inquiries.
US President Trump has announced several proposed tariff measures, including a 25% tariff on imported automobiles, semiconductors, and pharmaceuticals.
Regarding the widely discussed view that “the current US-China trade tensions might benefit ASEAN countries,” Zafrul does not completely agree.
He said that although ASEAN has very close trade ties with both the US and China, any economic disruption will impact ASEAN since these two countries account for nearly 45% of the global Gross Domestic Product (GDP).
In light of this, he concluded that ASEAN needs to approach these challenges cautiously, especially when sanctions, tariffs, or export restrictions implemented by one country may have spillover effects on neighboring regions.
Additionally, Zafrul also called for a gradual and measured approach to opening ASEAN regional markets to promote economic growth.
“Countries will always protect industries they believe are immature or not yet ready for fair competition, but we need to set milestones and timelines for opening up countries, especially within ASEAN.”
He pointed out that ongoing efforts like the ASEAN Trade in Goods Agreement (ATIGA) and the ASEAN Digital Economy Framework Agreement (DEFA) are key examples of ASEAN’s commitment to multilateralism and deepening economic cooperation.
Zafrul said that protectionist policies in the services sector are significant obstacles to deeper regional integration.
“The services sector is more protected than the goods sector. We need to create more openness in this area to strengthen economic cooperation.”