ASEAN’s Strategic Response to the U.S. Trade War on Tariffs under President Trump

Malaysian Consultative Council of Islamic Organizations
Space U8 , Eco Mall , Shah Alam , Selangor , Malaysia
azmiabdulhamid58@gmail.com
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MAPIM Policy Brief

Title: ASEAN’s Strategic Response to the U.S. Trade War on Tariffs under President Trump

Date: 9 April 2025

Prepared by:
Mohd Azmi Abdul Hamid
President MAPIM

Executive Summary

The U.S. trade war on tariffs initiated under President Trump has disrupted global trade flows, increased protectionist sentiment, and placed pressure on export-driven economies. For ASEAN, these developments pose both challenges and opportunities. This policy brief outlines strategic recommendations for how ASEAN should respond—emphasizing unity, diversification, and innovation.

Key Issues

1. Increased Tariffs: U.S. tariffs on China and other trading partners have led to shifting global supply chains.
2. Market Uncertainty: Tariff threats and retaliation have eroded investor confidence and trade predictability.
3. Economic Vulnerability: Export-oriented ASEAN economies face collateral damage due to interdependence with affected markets. Policy Recommendations
4. Strengthen Intra-ASEAN Economic Integration

●Fast-track full implementation of the ASEAN Economic Community (AEC).

●Remove non-tariff barriers and streamline customs procedures.

●Promote cross-border infrastructure and digital connectivity.

2. Diversify Trade and Investment Partnerships

●Expand and optimize trade under RCEP, CPTPP, and bilateral FTAs.

●Deepen economic ties with the EU, India, Japan, and Africa.

●Promote ASEAN as a hub for supply chains relocating from China.

3. Maintain ASEAN Centrality and Unity

●Adopt a unified stance in international trade negotiations.

●Coordinate national policies to avoid being divided by external powers.

●Empower the ASEAN Secretariat to lead collective economic strategies.

4. Engage the U.S. Through Strategic Dialogue

●Utilize ASEAN-U.S. frameworks to express concerns about tariffs.

●Propose cooperative mechanisms on trade, investment, and supply chain resilience.

●Reinforce the importance of rules-based trade systems.

5. Boost Innovation and Industrial Transformation

●Invest in high-tech industries, green economy, and digital trade.

●Encourage upskilling and R&D to move up the value chain.

●Establish regional innovation hubs to attract global investment.

6. Uphold Multilateralism and WTO Reform

●Support reform initiatives that strengthen the WTO dispute system.

●Advocate for fairness and inclusivity in global trade governance.

●Collaborate with like-minded countries to resist protectionism.

Conclusion

ASEAN must respond to Trump-era tariff policies not with confrontation, but with strategic resilience. By deepening integration, diversifying partnerships, and fostering innovation, ASEAN can transform short-term challenges into long-term gains—emerging as a stabilizing force in the evolving global economy.