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MOUNTING concerns over steep US tariffs are casting a long shadow over economic talks in Kuala Lumpur this week, as US Trade Representative Jamieson Greer meets with ministers from the 10-member Association of Southeast Asian Nations (ASEAN) to advance a trade and investment agreement.
The talks, hosted by Malaysia’s Investment, Trade and Industry Minister Tengku Zafrul Abdul Aziz, are taking place against the backdrop of recent tariffs imposed by Washington, which range from 19% to 20% for most ASEAN members, 40% for Laos and Myanmar, and 10% for Singapore.
"Whether we will be discussing tariffs, it’s something that we will see," Zafrul told reporters on Tuesday.
“The fact that all the ASEAN economic ministers are still here to discuss with the US, and the fact that the USTR himself is here, show that both ASEAN and the US value each other’s relationship when it comes to trade and investment, and that’s what’s important.”
Export-driven Southeast Asian economies are bracing for economic fallout. Vietnam, the sixth-largest exporter to the US, stands to lose as much as US$25 billion (RM105 billion) annually due to the 20% levy on its goods, according to estimates by the United Nations Development Programme.
While ASEAN members have mostly pursued bilateral efforts to address the tariffs, rising pressure on strategic industries such as semiconductors — vital to Thailand, Malaysia and Vietnam — may compel the bloc to adopt a unified negotiating stance.
Last month, US President Donald Trump signalled plans to impose a 100% tariff on semiconductors, with exemptions only for companies manufacturing or committed to manufacturing within the United States.
In parallel to the US talks, ASEAN ministers also met with their South Korean counterpart to deepen economic ties. Zafrul highlighted the October 2024 launch of the ASEAN–Republic of Korea Comprehensive Strategic Partnership as marking "a new era" in bilateral cooperation.
“This framework provides direction for closer collaboration in emerging areas such as the digital economy, green transition and resilient supply chains,” he said during his opening remarks at the 22nd ASEAN–ROK Consultation held as part of the 57th ASEAN Economic Ministers’ Meeting (AEM) and related sessions.
“These discussions are built on a strong foundation to ensure our cooperation remains relevant, capable of addressing challenges, and mutually beneficial,” he added. - September 24, 2025