PHILIPPINE President Ferdinand R. Marcos, Jr. articulated apprehension regarding the effects of the US tariffs on the worldwide economy, cautioning about potential “decline in economic activity.”
At a press briefing following the 46th ASEAN Summit in Kuala Lumpur on Tuesday evening, Mr. Marcos remarked that the US tariffs enforced on Association of Southeast Asian Nations (ASEAN) members will have a considerable influence on the region’s economies.
“If the tariff structure is imposed unilaterally, there will be a genuine collapse. It has global repercussions, and it will not be a favorable one. I believe there will be a decline in economic activity. I hope not. I hope I’m mistaken,” he stated.
Southeast Asia is preparing for the ramifications of the US reciprocal tariffs, which have been suspended until July. Six ASEAN nations are facing tariffs ranging from 32% to 49%, while the Philippines has been assigned a 17% tariff, the second-lowest in the region.
Even if the tariff is retracted, Mr. Marcos mentioned that there is already a lasting impact on the economy that cannot be reversed.
Southeast Asian leaders on Tuesday evening articulated their “deep concern” regarding the tariff policies of the Trump administration.
“We express substantial concern over the recent declaration by the United States to impose unilateral tariffs and their potential consequences on our economies,” stated the chairperson of the ASEAN on Tuesday evening.
“The uncertainties stemming from these tariffs and possible retaliation could amplify volatility in both capital movements and currency exchange rates.”
Nonetheless, Southeast Asian leaders indicated they will persist with their discussions with the US, “and are committed not to enact any retaliatory measures in response to US tariffs.”
“We also highlighted the necessity of diversifying trade beyond conventional markets,” as per the statement.
Meanwhile, Mr. Marcos noted that uncertainty continues as nations await developments in their negotiations with the US.
“We are unsure what will transpire between now and July when the 90 days expire,” he remarked.
Mr. Marcos further advocated for enhanced regional cooperation and stronger economic integration within ASEAN.
“If we can no longer sell to these markets, we should then trade with each other’s markets. The most reliable pathway forward is to be dependable partners within ASEAN,” he expressed.
The Philippine president mentioned he discussed the issue of US tariffs with Chinese Premier Li Qiang during the ASEAN Summit.
“I asked him, ‘Premier, what is your perspective?’ He replied, “Well, we do not desire any of this.” They are against this (trade) conflict. And I said, ‘We are extremely worried because China is the largest economic force in the region,’” Mr. Marcos recounted.
Earlier this month, the US and China came to a temporary agreement to reduce reciprocal tariffs for 90 days. The US decreased the additional tariffs on Chinese imports to 30% from 145%, while China’s levies on US imports will be cut to 10% from 125%.
NEGOTIATIONS
In the meantime, Southeast Asian leaders reached a consensus on Tuesday that any bilateral agreements they might establish with the United States regarding trade tariffs would not adversely affect the economies of fellow members, as stated by Malaysia’s Premier Anwar Ibrahim.
Mr. Anwar, the current chair of ASEAN, indicated that there was a unanimous agreement during the ASEAN Summit that any agreements made with Washington would safeguard the interests of the region as a whole.
The ASEAN meeting took place amid global market fluctuations and decelerating economic growth, coupled with uncertainties surrounding a trade war that began with US President Donald J. Trump’s declaration of extensive “Liberation Day” tariffs.
“While engaging in bilateral negotiations…, the consensus emerged to have some form of understanding with ASEAN that decisions should not come at the expense of any other nation,” Mr. Anwar stated, mentioning that he had written to Mr. Trump requesting an ASEAN-US meeting on the tariffs.
“Thus, we must safeguard the interests of 650 or 660 million individuals,” he noted regarding ASEAN.
ASEAN, a region boasting a combined gross domestic product exceeding $3.8 trillion, finds itself in a delicate position in relation to the United States, which serves as the largest market for the region’s exports, vital drivers of its growth.
The 10-member coalition on Tuesday introduced a five-year strategic plan to better integrate its economies, citing challenges that indicate “continuing business as usual will not suffice.”
Tuesday’s discussions also encompassed an economic assembly of leaders from ASEAN, Gulf nations, and China.
During a dinner function late on Tuesday, China’s Mr. Li encouraged Gulf and ASEAN countries to eliminate trade obstacles and broaden liberalization in light of growing protectionism and unilateralism.
“We all need to steadfastly uphold the multilateral trading system with the World Trade Organization as the core and foster the establishment of a stable and orderly international market environment,” he noted. — CMAH and Reuters
