PH backs Asean position: No retaliation vs US tariffs
KUALA LUMPUR—President Marcos on Monday expressed his support for the position of the Association of Southeast Asian Nations (Asean) to not retaliate against the higher tariffs which the United States seeks to impose on its trading partners.
In his speech at the Economic Ministers’ Meeting as part of the 46th Asean Summit hosted by Malaysia, the President also underscored the need for the regional bloc to work together in navigating “unexpected trade barriers.”
“We commend Malaysia’s leadership in convening this special Asean Economic Ministers’ Meeting and welcome the consensus to avoid retaliatory measures,” Mr. Marcos said at the closed-door session on Monday morning.
“This measured and unified approach upholds Asean’s commitment to dialogue, diplomacy, and a rules-based multilateral trading system,” he added.
He also reminded fellow state leaders that “geopolitical tensions, unexpected trade barriers, and the unprecedented impact of climate change have the potential to disrupt our communities [and] supply chains and remove our hard-earned progress.”
“[B]y working together, strengthening our institutions, and building the resilience and capacities of our people, we can better navigate this increasingly uncertain future and turn challenges into opportunities for shared growth and stability,” the President said.
Trade disruption
US President Donald Trump announced on April 2 what he described as a set of “Liberation Day” tariffs on all trading partners of the United States. But a week later he postponed the tariffs for 90 days until July, limiting these duties, for now, to a 10-percent “baseline” tariff.
But the brunt of his tariffs was particularly focused on China, with US-imposed levies reaching as high as 145 percent on Chinese imports. This, in turn, prompted Beijing to reciprocate with 125 percent on some US imports.
Both the United States and China have since suspended all but 10 percent of their tariffs for 90 days, starting May 14. They have also canceled other retaliatory levies.
Malaysian officials who led the Asean meetings have called for a united front among the member states before the trade disruption prompted by Trump’s policies.
‘Dialogue and cooperation’
Opening a meeting of Asean foreign ministers on Sunday, Malaysian Foreign Minister Mohamad Hasan warned that “Asean nations are among those most heavily affected by the US-imposed tariffs. The US-China trade war is dramatically disrupting production and trade patterns worldwide. A global economic slowdown is likely to happen.”
“We must seize this moment to deepen regional economic integration, so that we can better shield our region from external shocks,” Mohamad said.
On Monday, Investment, Trade and Industry Minister Tengku Zafrul Aziz, chair of the Asean Economic Community Council, said: “Instead of retaliation, we have chosen dialogue and cooperation with a clear commitment among Asean member states to not impose retaliatory measures, emphasizing that open communication is key to a balanced and sustainable relationship.”
“This prudent stance has already averted escalation and preserved the foundation for engagement between Asean, not just with the US, but with other major economies as well,” Zafrul also said. —WITH REPORTS FROM AP AND INQUIRER RESEARCH
