Malaysia

ASEAN urged to act as one in U.S. tariff talks to maximise leverage

Analysts say a united ASEAN stance in negotiations with Washington would strengthen the bloc’s bargaining power and reflect growing regional cohesion, with Malaysia leading the charge

Updated 1 year ago · Published on 06 May 2025 9:28AM

ASEAN urged to act as one in U.S. tariff talks to maximise leverage
ASEAN’s combined economic output of US$4 trillion and population of 640 million gave it considerable weight in trade discussions - May 6, 2025

A COLLECTIVE ASEAN approach to negotiations over US tariff measures would provide the 10-member bloc with far greater leverage than individual countries acting alone, according to regional analysts.

Universiti Utara Malaysia’s deputy vice-chancellor (Academic and International), Professor Dr Mohd Azizuddin Mohd Sani, told Bernama today that ASEAN’s combined economic output of US\$4 trillion and population of 640 million gave it considerable weight in trade discussions.

“Although some countries have engaged in individual negotiations, approaching the talks as a collective gives us greater bargaining power and the ability to push for our interests,” he said.

“Negotiating individually may put us at a disadvantage, so I see a collective approach as both systematic and strategic,” he told Bernama.

He added that the support shown by ASEAN member states for Malaysia’s proposal to form a united negotiating position reflected trust in Prime Minister Datuk Seri Anwar Ibrahim’s leadership as ASEAN chair for 2025.

“This reflects Prime Minister Datuk Seri Anwar Ibrahim’s strategic approach to addressing the impact of these tariffs by responding as a united economic bloc,” said Mohd Azizuddin.

At a special session in Parliament yesterday, Anwar, who also serves as Finance Minister, stressed the need for a collective ASEAN response to the tariffs, calling it a sign of the bloc’s strategic maturity.

He noted that member countries had expressed full backing for Malaysia’s efforts to forge a united position, underscoring ASEAN’s solidarity and shared economic interests in engaging with Washington.

Dr Oh Ei Sun, principal adviser at the Pacific Research Centre of Malaysia and a senior fellow at the Singapore Institute of International Affairs, said Malaysia was making a serious push for ASEAN unity in response to the tariff measures.

“Now it’s up to the major ASEAN economies to come on board. They should realise that a collective reaction is, perhaps, more conducive to their national interest as ASEAN could negotiate better terms collectively,” he said.

Geostrategist Professor Dr Azmi Hassan of the Nusantara Academy for Strategic Research said that while ASEAN members face differing tariff rates — between 10 and 49 per cent — reaching consensus was still vital.

“Each country has its own justification and strategy, but so far, all have agreed not to impose reciprocal tariffs on the US, as China has done,” he said.

Azmi added that ASEAN should also focus on strengthening intra-regional trade and expanding into new markets to cushion the impact of the US measures.

“The Prime Minister mentioned the ASEAN Summit with the Gulf Cooperation Council (GCC) and European countries. While negotiations for a Free Trade Agreement (FTA) with the European Union are still ongoing, it can be considered a new market,” he said.

The Biden administration on 9 April announced a 90-day pause on most retaliatory tariffs imposed on foreign countries, following widespread international protests. The base tariff of 10 per cent, however, remains in effect. - May 6, 2025

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