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US tariffs shake up ASEAN

Region's role in global supply chains in jeopardy

Updated: 2025-04-10 11:09
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Garment factory workers stitch apparel at a factory in Ho Chi Minh City, Vietnam, on April 3, after the United States said it would slap levies of 46 percent on Vietnamese exports. HUU KHA/AFP

Reactions in Asia

Malaysian Prime Minister Anwar Ibrahim, the current ASEAN Chair, called on Monday for Southeast Asian countries to "stand firm together" after they were among the hardest hit by US tariffs.

"We must stand firm together as ASEAN — with a population of 640 million and an economic strength that is among the top in the world," Anwar said at a prime minister's department staff meeting.

As ASEAN Chair, Malaysia seeks consensus among member states to establish principles of fairness and equality in international trade negotiations, including in ASEAN-US dialogue relations.

Vietnamese Prime Minister Pham Minh Chinh ordered up a task force to address the situation, state media said.He noted the country's 8 percent growth target for this year remained unchanged.

"Vietnam's export-driven growth model has been highly successful, attracting multinational companies …However, a 46 percent US tariff would directly challenge this model," said Leif Schneider, head of international law firm Luther in Vietnam.

Thai Prime Minister Paetongtarn Shinawatra said she hopes to bring down the 37 percent rate imposed on Thailand — far greater than the 11 percent it had expected.

"We have to negotiate and get into details," she said. "We can't let it get to where we miss our GDP target."

Thai economic growth has lagged regional peers, growing at 2.5 percent last year, held back by soaring household debt. It is hoping for 3 percent growth this year.

Malaysia, which was dealt a rate of 24 percent, announced it would engage with US authorities "to seek solutions that will uphold the spirit of free and fair trade."

Cambodia is facing tariffs of 49 percent that will hurt its garment and footwear industries and crushing hopes that it could attract investment relocating from other countries in the region.

It is a "very, very serious situation for the economy," said a Cambodia-based investment consultant who declined to be identified.

There is "nothing that Cambodia can offer as a negotiating tool, and will be at the back of a very long queue," he added.

The Straits Times, Singapore & The Jakarta Post, Indonesia

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