Southeast Asian leaders hit out at Trump tariffs as China pledges support

Southeast Asian nations facing punishing US tariffs criticised the Trump administration for undermining economic growth, stability and integration in the region.

The Association of Southeast Asian Nations (Asean) held a summit in Kuala Lumpur, Malaysia, on Tuesday with China and six Persian Gulf countries, seeking to expand economic engagement amid global trade volatility caused by US tariff hikes.

The two-day summit was overshadowed by Mr Trump’s tariff threat, with six members of the 10-nation bloc among the countries facing the steepest tariffs.

Cambodia and Vietnam face 49 and 46 per cent levies respectively, the highest after China, which is grappling with a 145 per cent tariff.

“We expressed deep concern over the growing geoeconomic uncertainties, including the imposition of unilateral tariff measures, which pose complex and multidimensional challenges to Asean’s economic growth, stability, and integration,” Asean leaders said in a joint statement.

Noting that any potential retaliation could heighten volatility in capital flows and exchange rates, the leaders pledged not to impose retaliatory tariffs.

“We will continue to engage in a frank and constructive dialogue with the US and commit not to impose any retaliatory measures in response to US tariffs,” they said.

They nonetheless underscored the “urgency of diversifying trade beyond traditional markets”.

The US tariffs on Asean members Vietnam, Thailand, Malaysia, Indonesia, and Cambodia are paused for 90 days while they negotiate with the Trump administration. The paused levies are in addition to the universal tariff of 10 per cent that the US has imposed on almost all its trading partners.

China was represented at the summit by premier Li Qiang. China, the single top trading partner for the Asean bloc, has sought to present itself as a reliable partner for the region amid uncertainty caused by Mr Trump’s tariffs.

The six oil-rich countries of the Gulf Cooperation Council which attended the summit are also important trade partners of the regional grouping.

“China will join Asean and the GCC in forging synergies that multiply,” Mr Li said, adding the three-way cooperation would benefit all sides.