SLAPPED WITH TARIFFS by the US, the Association of Southeast Asian Nations (ASEAN), with all its 11 members affected, is now more important than ever. As the world comes to terms with the US import taxation, ASEAN countries have to digest that they are among those facing the highest quantum of tariffs—Cambodia being the world’s highest with a 49% levy on exports into the globe’s biggest economy. Malaysia is among those affected by the tariffs; since 5 April, every Malaysian product shipped to the US is stamped with at least a 10% duty; and from 9 April, a 24% rate, with some exemptions.
For now, the country will embark on a range of diplomatic missions by first cajoling ASEAN to, in unison, urge the US to reconsider the quantum of tariffs imposed. As a single market entity, ASEAN is a significant economic force, with a combined GDP of USD 3.8tril and a population breaching 700 million—the world’s third most populous region. The country then would also seek its partners in Free Trade Agreements and other regional blocs such as the European Union (EU), to offer alternative options to the US, in the hope that such tariffs can reduce or reverse its trade deficits with the world.
