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April 9, 2025ASEAN’s Strategic Response to the U.S. Trade War on Tariffs under President Trump
April 9, 2025Malaysian Consultative Council of Islamic Organizations
Space U8 , Eco Mall , Shah Alam , Selangor , Malaysia
azmiabdulhamid58@gmail.com
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ASEAN’s response to Trump’s trade war on tariffs should be strategic, united, and forward-looking. Here’s a structured overview of how ASEAN should respond:
- Strengthen Intra-ASEAN Trade
●Accelerate implementation of the ASEAN Economic Community (AEC) to boost internal trade and reduce dependency on external markets.
●Enhance infrastructure connectivity, remove non-tariff barriers, and harmonize regulations to promote regional supply chain resilience.
- Diversify Trade Partnerships
●Deepen engagement with other major economies (EU, China, India, Japan) through free trade agreements and economic cooperation.
●Leverage existing frameworks like RCEP and CPTPP to access broader markets and mitigate risks from US protectionism.
- Maintain a Unified ASEAN Position
●Present a cohesive regional stance in international trade forums (WTO, APEC) to protect ASEAN interests and resist pressure to take sides.
●Avoid fragmentation by ensuring smaller ASEAN states are supported in negotiations and policy alignment.
- Engage the US Through Diplomacy and Dialogue
●Continue constructive dialogue with the US to de-escalate tensions and advocate for rules-based trade practices.
●Use ASEAN-U.S. dialogue platforms to voice concerns over tariffs and promote mutually beneficial trade arrangements.
- Invest in Innovation and Industrial Upgrading
●Encourage digital economy, automation, and value-added production to make ASEAN a global investment hub beyond low-cost manufacturing.
●Develop policies to attract supply chain shifts from China due to tariffs, positioning ASEAN as an alternative.
- Strengthen WTO and Multilateralism
●Support reform of the World Trade Organization (WTO) to address trade disputes fairly and ensure smaller economies are protected.
●Uphold multilateralism as a core principle in ASEAN’s trade policy.
Summary:
ASEAN must respond not with retaliation, but with resilience, regional unity, and diversification. The goal is to reduce vulnerability to external shocks and enhance ASEAN’s long-term position in the global economy.
Prepared by
Mohd Azmi Abdul Hamid
President MAPIM
