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US tariffs expected to dominate discussions at upcoming ASEAN summit in Malaysia.

Published On Wed, 09 Jul 2025
Pallavi Joshi
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Foreign ministers from Southeast Asia are set to meet on Wednesday, July 9, amid rising concerns over new US trade tariffs and a brewing border conflict between Thailand and Cambodia that threatens to strain the unity of the ASEAN bloc. The meeting in Malaysia brings together the 10 member nations of the Association of Southeast Asian Nations (ASEAN), ahead of a series of discussions with key global partners—namely the US, China, Japan, Russia, India, and the EU—on Thursday and Friday.

High-profile attendees include China's Foreign Minister Wang Yi, Russia’s Sergei Lavrov, and US Secretary of State Marco Rubio, who is visiting Asia for the first time. Rubio aims to ease tensions caused by President Donald Trump's newly announced tariffs. Trump revealed on Monday that six Southeast Asian countries will face steep tariffs ranging from 25% to 40%, despite some of these nations making efforts to negotiate and offer trade concessions. Among the affected, only Vietnam managed to reduce its tariff rate from 46% to 20%.

Meanwhile, Indonesia, Thailand, and Malaysia have expressed intentions to hold further negotiations before the tariffs come into effect on August 1. A draft ASEAN statement, dated July 7 and reviewed by Reuters, highlights concerns about rising global trade tensions and unpredictable economic conditions—specifically criticizing the use of unilateral tariffs, although it does not directly name the US. The document echoes similar language from a May leaders’ summit, labeling such tariffs as “counterproductive” and warning they could deepen global economic fragmentation.

Despite these tensions, ASEAN has ruled out retaliatory measures and has committed to ensuring that any bilateral agreements with the US will not negatively impact other member states. Lavanya Ventakeswaran, a senior economist at OCBC, noted that countries like Vietnam face added risk from new tariffs aimed at stopping transshipments—particularly goods originating from China—though how these rules will be enforced remains unclear. Complicating matters further is Trump’s earlier threat to impose an extra 10% tariff on BRICS-aligned nations. Indonesia is a full member, while Malaysia, Thailand, and Vietnam are partners, putting them in a vulnerable position.

In addition to trade, ASEAN leaders will also discuss a nuclear weapons-free zone in the region and may try to ease the rising tensions between Thailand and Cambodia. Their dispute escalated recently with troop movements near the border, fueled by the suspension of Thai Prime Minister Paetongtarn Shinawatra over a leaked phone call with Cambodia’s former leader Hun Sen—an incident critics claim compromised Thai sovereignty. This diplomatic strain adds to ASEAN’s broader challenges, which include the ongoing civil war in Myanmar and slow progress in negotiating a code of conduct with China regarding the disputed South China Sea.

Disclaimer: This image is taken from Reuters.