US TARIFF PLANS TO BE DISCUSSED AT 31ST ASEAN ECONOMIC MINISTERS' RETREAT - TENGKU ZAFRUL

By Norsyafawati Ab Wahab

KOTA TINGGI, Feb 27 (Bernama) -- The tariff plans imposed by the United States (US) will be one of the topics discussed at the 31st ASEAN Economic Ministers’ (AEM) Retreat tomorrow.

Minister of Investment, Trade, and Industry (MITI) Tengku Datuk Seri Zafrul Abdul Aziz said the AEM Retreat, held from Feb 26 to 28, in Desaru, Johor, will not only discuss tariffs and trade impacts but also technology security, supply chains, and economic resilience based on ASEAN principles. 

US President Donald Trump has announced plans to impose tariffs on exporting countries to the US, including a 25 per cent tariff on imports of automotive, semiconductors, and pharmaceuticals.

Tengku Zafrul expressed caution that the ongoing US-China trade tensions could benefit ASEAN nations.

“I do not wholly agree that the US-China tensions directly benefit ASEAN.

“While ASEAN’s trade with both the US and China is significant, any disruption in their economies will have repercussions for ASEAN as these two countries represent almost 45 per cent of global GDP,” he stated during a press conference in conjunction with the organising of the AER Retreat session in Desaru which he will chair tomorrow. 

Tengku Zafrul highlighted that ASEAN needs to approach these challenges with attentiveness, particularly when sanctions, tariffs, or export restrictions imposed by one country could have spillover effects on neighbouring regions.

He also called for a gradual, measured approach to opening markets across the ASEAN region to foster economic growth.

“Countries will always protect industries they feel are not mature or ready for fair competition but we need milestones and timelines for countries to open up, especially within ASEAN,” the minister noted.

Tengku Zafrul emphasised ongoing efforts such as the ASEAN Trade in Goods Agreement (ATIGA) and the ASEAN Digital Economy Framework Agreement (DEFA) as key examples of ASEAN’s commitment to multilateralism and deepening economic collaboration.

At the same time, he noted that protectionist policies in the services sector are a significant barrier to deeper regional integration.

“More protection exists in the services sector than in the goods sector. This is an area where we need to create more openness to enhance economic cooperation,” Tengku Zafrul said.

-- BERNAMA