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Southeast Asian Leaders Meet To Talk Tariffs, Truce, East Timor

Trump cast international markets into turmoil in April when he announced wide-ranging tariffs, before agreeing to pause them for most countries for 90 days.


This illustration photograph shows a screen displaying a stock market index graphs and the word “Tariffs” written in the colours of the US flag, in Paris on April 4, 2025. Markets extended a global selloff on April 4, 2025 as countries around the world reeled from US President’s trade war, but the White House insisted the American economy will emerge victorious. (Photo by JOEL SAGET / AFP)

 

Southeast Asian leaders met Monday in Kuala Lumpur for their first summit since US President Donald Trump’s tariffs upended global economic norms, with the trade-dependent nations expected to issue a joint message of deep concern.

The Association of Southeast Asian Nations (ASEAN) will also attempt to increase pressure on Myanmar’s military junta and iron out remaining issues with East Timor’s application to join the bloc.

ASEAN’s strategy of nurturing diverse economic alliances was on full display as Chinese Premier Li Qiang touched down in the Malaysian capital, a day ahead of talks with the bloc and Gulf states.

“A transition in the geopolitical order is underway and the global trading system is under further strain, with the recent imposition of US unilateral tariffs,” according to prepared opening remarks by Malaysian Prime Minister Anwar Ibrahim.

“Protectionism is resurging as we bear witness to multilateralism breaking apart at the seams.”

Trump cast international markets into turmoil in April when he announced wide-ranging tariffs, before agreeing to pause them for most countries for 90 days.

Bilateral talks between the ASEAN member states and Washington are in progress, but the bloc is still presenting a united front, according to Malaysia — which holds the rotating ASEAN chairmanship this year.

– ‘Deep concern’ on tariffs –

According to a draft statement seen by AFP, ASEAN will express “deep concern… over the imposition of unilateral tariff measures”, saying they “pose complex and multidimensional challenges” to the bloc.

But ASEAN said earlier this year it would not impose retaliatory tariffs on the United States.

Instead, it is looking at broadening its scope with other trading blocs, including the European Union, as well as beefing up trade between member states, Malaysia’s trade minister said Sunday.

Tuesday’s talks with Li and the Gulf Cooperation Council — a bloc made up of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates — underscores this effort to diversify.

“It’s not just a photo-op. It actually demonstrates how ASEAN is attempting to engage strategically with various blocs, a strategy we might term multi-alignment diplomacy,” said Khoo Ying Hooi from Malaya University.

Anwar said Monday he had written to Trump to request an ASEAN-US summit this year — showing “we observe seriously the spirit of centrality”.

His foreign minister, Mohamad Hasan, said Sunday that the United States had not yet responded.

Trump’s tariffs have shown that “ASEAN member states cannot remain as passive bystanders waiting for other major powers to set the global agenda”, Adib Zalkapli from risk advisory firm Viewfinder Global Affairs told AFP.

– Myanmar conflict –

On Sunday, Malaysia tried to up pressure on member state Myanmar’s junta, whose leaders are barred from ASEAN summits over a lack of progress on a five-point peace deal agreed on by the bloc in 2021.

“One thing for sure that we agreed is that Myanmar’s government… must comply with the five-point consensus which they themselves agreed on as one of the signatories,” Mohamad said.

ASEAN has led so far fruitless diplomatic efforts to end the conflict, triggered when the junta staged a coup deposing civilian leader Aung San Suu Kyi in February 2021.

Mohamad called Sunday for an extension and expansion of a ceasefire declared after a deadly earthquake, despite ongoing fighting bringing its effectiveness into question.

 

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Meanwhile, ASEAN may add an 11th member state before the end of the year, the top diplomat said.

East Timor, Asia’s youngest nation, “has made meaningful progress in implementing a roadmap” and there is “strong support” for it to join the bloc, he said.

ASEAN member states will “now begin undertaking their respective domestic legal procedure” with a view to finalising its accession by the next summit in October “hopefully”, Mohamad said.