China left out in the cold as tariffs cause Asia to circle wagons and reach out to Donald Trump

ASEAN is looking inward, to its own union to help it ride out the turbulence.

PUBLISHED APR 10, 2025

Asian leaders pose for a photo during the ASEAN-Australia Special Summit on March 05, 2024 in Melbourne, Australia.

Singapore: The Donald Trump administration’s tariffs on Association of South East Asian Nations (ASEAN) have shaken Southeast Asia’s trade-reliant economies. But the surprise 90-day pause has brought a semblance of stability to the worried region.

While critics of Trump's tariffs feared that the 'tax' would push the region further into China's sphere of influence, the massive 124% tariff on the Communist country seems to have given ASEAN nations cold feet. Now ASEAN is looking inward, to its own union to help it ride out the turbulence and negotiate with the Trump administration.

Countries like Indonesia, Malaysia, and Singapore are already recalibrating trade strategies. Indonesia, facing a 32% tariff rate, has taken a diplomatic approach. President Prabowo Subianto emphasized resilience, warning that labor-intensive sectors like textiles and furniture will be hit “hard". Rather than retaliate, Jakarta seeks new markets — particularly in Africa — and has lowered select import taxes to encourage dialogue.

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Malaysia, with a 24% tariff, is balancing caution with opportunity. Prime Minister Anwar Ibrahim warned of potential GDP hits, while Minister Tengku Zafrul Aziz launched a geo-economic task force. As ASEAN chair in 2025, Malaysia is also pushing for regional coordination.

Singapore, least affected with a 10% tariff, responded with concern. Prime Minister Lawrence Wong labeled the move a “seismic change” in global trade norms. While avoiding direct confrontation, Singapore is urging ASEAN solidarity and focusing on long-term supply chain resilience.

Members of ASEAN are discussing what they can do as a group to respond to President Trump’s trade plans. “We welcome this move while acknowledging that this volatility creates significant challenges for Asean economies,” Malaysia’s Minister of Investment, Trade and Industry Zafrul Aziz said in a LinkedIn post. “Asean unity and regional economic integration will be more crucial than ever before.”