ASEAN: Trump’s Tariff Measures Invite Trade Reorganization

Editorial

15:02 JST, May 30, 2025

The high tariff policy of U.S. President Donald Trump’s administration is causing a global tectonic shift in economic blocs. Recent moves surrounding the Association of Southeast Asian Nations (ASEAN) can be said to be a new development that symbolically indicate this.

ASEAN held its first joint summit with China and the Gulf Cooperation Council (GCC), a group of six Middle Eastern countries that includes Saudi Arabia, in Malaysia.

The joint statement released after the summit included the importance of multilateralism and the cooperation of ASEAN, China and the GCC on promoting trade and investment.

ASEAN has conventionally been wary of becoming embroiled in the U.S.-China confrontation, and it has spent a great deal of effort in striking a balance between the two countries. But Malaysian Prime Minister Anwar Ibrahim, who is ASEAN chair this year, invited China for the first time into the existing ASEAN summit framework with the GCC.

The United States has indicated that it intends to impose high reciprocal tariffs on Cambodia and other countries, claiming that China is exporting Chinese products via Southeast Asia.

In response, Anwar has criticized the move as “unilateral,” expressing his willingness for ASEAN as a whole to unite in negotiations with the United States, while each member country continues its own individual negotiations with Washington.

As part of this effort, ASEAN is apparently seeking to build a new economic bloc together with China, its largest trading partner, and oil-producing countries, to fill the gap in trade with the United States, which is expected to decline due to the U.S. tariff measures.

Meanwhile, the administration of Chinese President Xi Jinping is trying to bring both regions into its camp and strengthen its countermeasures against the United States.

Xi visited three Southeast Asian countries last month, and immediately after that, Premier Li Qiang attended the joint summit. This unprecedented approach indicates that Beijing sees the current situation as an opportunity to strengthen its ties with ASEAN.

However, China is continuing its aggressive military maritime expansion in the East China Sea and the South China Sea and also threatens trade partners with “economic coercion” by restricting trade. If China sees itself as a defender of multilateral cooperation and free trade, it should change this behavior.

If ASEAN distances itself from the United States and China’s influence grows too strong in the region, it could not only have a negative impact on the global economy, but it could also significantly alter the security environment in the region.

Japan also needs to respond to the movement to build a new economic bloc centered on ASEAN.

While utilizing existing frameworks, including one between the three countries of Japan, China and South Korea along with ASEAN and the Trans-Pacific Partnership agreement, Japan should promote economic cooperation with other countries and regions to maintain the free trade regime and strengthen regional stability.

(From The Yomiuri Shimbun, May 30, 2025)