Kuala Lumpur: The United States signaled its intent to finalize trade agreements with several Southeast Asian nations in the coming months, amid growing apprehension over the economic impact of American tariffs. U.S. Trade Representative Jamieson Greer convened with economic ministers from the 10-member Association of Southeast Asian Nations (ASEAN) in Kuala Lumpur on Wednesday, marking a crucial step in Washington’s effort to recalibrate trade relations in the region.
During the talks, Greer emphasized the U.S. goal of establishing “balanced and reciprocal” trade with ASEAN nations. While some agreements have already been announced, he indicated that finalization of others could occur within weeks, underscoring the urgency and sensitivity of ongoing negotiations. The discussions come at a time when Southeast Asia’s export-driven economies are grappling with tariffs ranging from 19% to 20%, with Laos and Myanmar hit by a staggering 40%, and Singapore facing a 10% levy.
Vietnam, a significant exporter to the United States, is facing the brunt of these measures. Analysts estimate that the 20% tariff could cost the country nearly $25 billion annually, making it the most severely affected economy in the region. ASEAN ministers collectively expressed concern over the uncertainty created by these tariffs, warning of potential slowdowns in regional trade during the latter half of 2025. They highlighted the dangers posed by rising protectionism and unilateral trade measures, which could destabilize global supply chains and threaten the multilateral trading system.
The U.S. administration, led by President Donald Trump, has also signaled plans to impose steep tariffs of up to 100% on semiconductors, though exceptions would apply for manufacturers producing within the U.S. or committing to relocate production domestically. Such moves have heightened the need for a unified ASEAN stance, as nations with significant semiconductor industries including Thailand, Malaysia, and Vietnam navigate potential disruptions to critical sector s of their economies.
The Kuala Lumpur meeting represents the first time Greer addressed the ASEAN bloc collectively, signaling a shift from separate bilateral discussions to a more consolidated approach. Observers note that the outcomes of these negotiations will have far-reaching implications for Southeast Asia’s economic stability and its trade relationship with the United States, particularly as the region seeks to maintain growth amid global uncertainty.