No retaliation, but deep concern: Asean decries US tariffs, upholds trade commitments

Acknowledging the US as the bloc’s largest source of foreign investment and second-biggest trading partner, Asean economic ministers on Apr 10 called for “frank and constructive” talks to prevent a deeper rupture. PHOTO: TENGKU ZAFRUL AZIZ/FACEBOOK

Economic tsars of the regional bloc vow to uphold trade commitments to keep the region stable and preserve economic ties

Jamille Tran & Tan Ai Leng

[KUALA LUMPUR] South-east Asia’s top economic ministers ruled out retaliation and reaffirmed Asean’s trade commitments, as they sounded the alarm on Washington’s unilateral tariffs, warning that the move threatens to fracture supply chains, unsettle markets and derail the bloc’s economic progress.

In a joint statement after an emergency meeting on Thursday (Apr 10), Asean economic ministers affirmed the bloc’s commitment not to hit back against the US tariffs. Acknowledging the US as Asean’s largest source of foreign investment and second-biggest trading partner, the ministers called for “frank and constructive” talks to prevent a deeper rupture.

The 10-member bloc, representing the fifth-largest economy in the world, also pushed for all parties to explore “mutually acceptable solutions” on issues of common interest.

“These include facilitating two-way trade and investment, deepening strategic trade partnerships, and enhancing supply-chain connectivity and resilience through digital technology and innovation,” they said in a statement after a video meeting among themselves.

This comes as US President Donald Trump said on Wednesday he would temporarily lower the previous steep duties to 10 per cent “for the people who didn’t retaliate”.

His unexpected turnabout took place less than 24 hours after the enforcement of hefty new tariffs, with six of nine South-east Asian countries targeted by the US administration facing steep reciprocal levies of between 32 and 49 per cent.

Source: businesstimes.com.sg