Trump tariffs bring impetus to expanded intra-ASEAN trade Malaysia

The sweeping global tariffs imposed by the Trump administration should provide fresh impetus to boost trade within the Association of Southeast Asian Nations (ASEAN), Malaysia’s envoy to Manila said on Tuesday.

“I think the current tariffs that has been affecting ASEAN would create the opportunity for us to do extra intra-ASEAN trade,” said Malaysian Ambassador to the Philippines Abdul Malik Melvin Castelino in an interview on the sidelines of an Asia Society forum in Taguig City.

“If countries in ASEAN can come together and see how they can use the advantages of our own local manufacturing processes— we have the ASEAN free trade area already present— that would really generate growth within ASEAN."

The US government slapped hefty tariffs on countries, including members of ASEAN, with rates reaching as high as 40 percent on some bloc members.

Last month, the Philippines was able to negotiate a lower rate of 19 percent from the final 20 percent tariff earlier announced by the Trump administration.

Foreign Affairs Secretary Ma. Theresa Lazaro earlier said these reciprocal tariffs still present opportunities for ASEAN to encourage increased trade within the region.

Discussions, she added, are already ongoing and “evolving” to expand them.

From Malaysia’s side, Castelino said Kuala Lumpur continues to urge Malaysian firms to invest more in neighboring ASEAN states, including the Philippines.

“There is active push to increase and push for investments across ASEAN by governments themselves, and this was discussed in the meeting of the ASEAN trade ministers,” he said.

“This is precisely it— we have to come together and see how we can use these opportunities to create a market for ourselves,” he added.

ASEAN 2026

Castelino said Malaysia, by the end of its ASEAN chairmanship, hopes to see the ASEAN Power Grid (APG) get finalized, among other agreements.

The APG is an initiative seeking to connect the 10 bloc members’ electricity networks and boost energy-related trade within the ASEAN.

“All these agreements and understandings are meant for us to push forward. The Philippines, when it takes over ASEAN chairmanship, will continue and add on additional platforms for us to further integrate among ourselves,” he said.

“I'm very confident that the Philippines will do an excellent job next year,” he added.

In an ambush interview, Lazaro said preparations are underway for the Philippine ASEAN hosting and that Manila is ready to present its priorities soon.

As the bloc marks 58 years this year, Lazaro looked forward to the sustained cooperation among member states — one that drives prosperity in the region.

“ASEAN remains among the world’s most peaceful and stable regions, characterized by economic dynamism and rapid growth,” she said in her remarks at the forum.

“Our commitment to regional integration, connectivity, and sustainability has made us a hub of trade, innovation, and opportunity. This prosperity is not the achievement of one nation alone – it is the collective success of a united ASEAN,” she added.

Since its launch in 2015, Lazaro said the ASEAN Economic Community has fostered trade and investment, empowered businesses, narrowed development gaps, and enabled the seamless movement of goods, services, investment, capital, and skilled labor.

ASEAN stands as the world’s fifth-largest economy at USD3.8 trillion, and is projected to become the fourth-largest by 2030.

Source: Philippine News Agency